Financial Results Summary (Standalone)

Period: Half Year ended 30 September 2026 (All figures in Rs. Lacs)

Income Statement:

  • Revenue from operations: 2629.30 (Previous year same period: 1532.36; Full year FY26: 3608.29)
  • Other income: 0.00 (Previous year same period: 0.00; Full year FY26: 141.69)
  • Total income: 2629.30 (Previous year same period: 1532.36; Full year FY26: 3749.98)
  • Total expenses: 2746.21 (Previous year same period: 1669.42; Full year FY26: 3945.73)
  • Loss before tax: (116.97) (Previous year same period: (137.06); Full year FY26: (195.75))
  • Tax expense: 2.10 (Deferred tax only; Previous year same period: 2.28; Full year FY26: 2.30)
  • Net loss after tax: (119.01) (Previous year same period: (139.34); Full year FY26: (198.06))
  • Earnings per share (Basic & Diluted): (0.48) (Previous year same period: (0.58); Full year FY26: (0.79))

Balance Sheet Highlights (as at 30 September 2026):

  • Paid-up equity share capital: 2495.00 (Face value Rs. 10/- each)
  • Reserves and surplus: (1391.40) (Previous year ended 31 March 2026: (1272.39))
  • Total equity: 1103.60
  • Non-current liabilities: 258.08 (Long-term borrowings)
  • Current liabilities: 2653.28 (including short-term borrowings of 52.45 and trade payables of 2546.22)
  • Total liabilities: 4014.57
  • Non-current assets: 1557.20 (including long-term loans and advances of 1505.19)
  • Current assets: 2457.77 (including inventories of 434.89 and trade receivables of 1260.66)
  • Total assets: 4014.57

Cash Flow Statement (Half year ended 30 September 2026):

  • Net cash from operating activities: 8.23 (Previous year same period: (1186.78))
  • Net cash from investing activities: 0.00 (Previous year same period: (0.17))
  • Net cash from financing activities: 1.72 (Previous year same period: 1186.62)
  • Net increase in cash: 9.94
  • Cash and cash equivalents at end: 15.21 (comprising cash on hand 2.82 and bank balances 12.39)

Auditor's Qualifications and Compliance Issues

The Independent Auditor's Review Report by Kapish Jain & Associates (Firm Registration No. 022743N) contained several significant qualifications:

1. Balance Confirmations: Confirmations regarding closing balances of trade receivables, trade payables, and loans & advances were not made available, preventing verification of accuracy.

2. Income Tax Compliance Failures:

  • The Company failed to file Income Tax Returns (ITR) under section 139 of the Income Tax Act, 1961 for assessment years 2023-24, 2025-25, and 2025-26.
  • The Company failed to file Tax Audit Reports (TAR) under section 44AB for the same assessment years.
  • The company is liable to pay applicable penalties for these non-filings.

3. Employee Benefit Compliance:

  • The Company registered under the Employees Provident Fund Act, 1952 and Employee's State Insurance Act, 1948 but has not deducted or deposited contributions for eligible employees till 31 March 2023.
  • The financial impact of this non-compliance is not ascertainable.

4. TDS Compliance Failure:

  • The Company failed to comply with TDS provisions under Chapter XVII of the Income Tax Act, 1961.
  • TDS deducted but not deposited: Rs. 9.87 lacs (till 31 March 2023) and Rs. 15.59 lacs (till 31 March 2024).
  • TDS returns have not been submitted for these amounts.

5. Advance Recovery Issues:

  • The Company gave advances amounting to Rs. 1,150.40 lacs during business operations but is unable to track work progress.
  • Management has issued legal notices to respective parties for recovery proceedings.

6. Bank Loan Default and Proceedings:

  • The Company had a credit facility of Rs. 170.00 lacs with ICICI Bank Limited, secured by charge on 2 immovable properties owned by directors.
  • Outstanding amount: Rs. 171.56 lacs as of notice date.
  • The bank declared the loan as Non-Performing Asset (NPA) on 1 December 2023 and attached one property for recovery.
  • Symbolic possession notice issued by bank on 3 April 2024.
  • Outstanding balance as on 30 September 2026: Rs. 52.45 lacs (Previous year ended 31 March 2026: Rs. 140.79 lacs)
  • The Company applied to Debt Recovery Tribunal-1 (DRT) at Ernakulam on 22 April 2024 to challenge property attachment.
  • Matter pending hearing with next date fixed on 13 November 2026.

Additional Information

  • The financial results were reviewed by the Audit Committee and approved by the Board of Directors.
  • The Company is engaged in trading & distribution of mobile phones, electronic gadgets, accessories, computer parts and other electronic media equipment.
  • The Company has a single reportable segment as per Accounting Standard 17.
  • Figures for previous periods have been regrouped/rearranged/reclassified wherever necessary.