Auditor's Disclaimer of Conclusion

J. S. Shah & Co., Chartered Accountants (Firm Registration No. 132059W), issued a disclaimer of conclusion on the financial results due to inability to obtain sufficient appropriate review evidence for several material areas:

  • Balance Confirmations: No confirmations received for Sundry Creditors (₹2.00 crore as per balance sheet), Sundry Debtors (₹43.47 lakh), Loans and Advances, Deposits, Current Liabilities, Unsecured Loans and related balances. Unable to verify appropriate amounts or determine necessary adjustments.
  • Micro/Small Enterprise Dues: Detailed break-up of outstanding dues to creditors other than Micro Enterprises and Small Enterprises not received, preventing completeness and accuracy verification.
  • Sanand Plot Investment: Inadequate documentation and supporting records for investment in Plot and Premises at Sanand. Unable to verify existence, rights, classification, or appropriate valuation of this asset (₹1.00 crore as per balance sheet).
  • Inventory Existence: Company reported inventory of ₹2.15 crore but has no godown, warehouse, or identifiable storage premises. Unable to physically verify existence, quantity, or valuation due to lack of supporting documentation and stock records.
  • Unsupported Balances: Company provided inadequate party-wise supporting details for Non-Current Investments (₹1.00 crore), Long-Term Loans and Advances (₹5.33 crore), and Inventories (₹2.15 crore).
  • General Verification: Lack of adequate supporting documents, confirmations, and reconciliations prevented independent verification of existence, rights, completeness, accuracy, and appropriate measurement/valuation of all assets and liabilities.

The auditors concluded that due to the significance and pervasiveness of these matters, they were unable to obtain sufficient appropriate review evidence to provide a basis for expressing a conclusion on whether the Statement complies with Accounting Standard (AS) 25 and SEBI Listing Regulations.

Financial Results Overview (Half Year Ended 30.09.2026)

Income Statement Highlights (₹ in Lakh):

  • Revenue from operations: ₹71.32 (H1 FY25: ₹137.99, FY26: ₹293.70)
  • Other income: ₹0.00 (H1 FY25: Not provided, FY26: ₹0.22)
  • Total income: ₹71.32 (H1 FY25: ₹137.99, FY26: ₹293.92)
  • Expenses: ₹32.09, comprising:
  • Purchases of stock-in-trade: ₹28.94
  • Employee benefits expense: Not quantified in current period (H1 FY25: ₹0.72)
  • Other expenses: ₹3.15
  • Profit before tax: ₹39.23 (H1 FY25: ₹2.27, FY26: ₹2.02)
  • Current tax expense: ₹8.83 (estimated at 22.50% of PBT)
  • Net profit for period: ₹30.40 (H1 FY25: ₹2.27, FY26: ₹0.77)
  • Earnings per share (basic and diluted): ₹0.52 (H1 FY25: ₹0.04, FY26: ₹0.01)

Balance Sheet Position as at 30.09.2026 (₹ in Lakh):

  • Total assets: ₹931.13 (31.03.2026: ₹1,045.58)
  • Non-current assets: ₹633.16, including:
  • Property, plant and equipment: ₹0.08
  • Non-current investments: ₹100.00
  • Long-term loans and advances: ₹533.08
  • Current assets: ₹297.97, including:
  • Inventories: ₹215.00
  • Trade receivables: ₹43.47
  • Cash and cash equivalents: ₹35.95
  • Shareholders' funds: ₹673.33, comprising:
  • Share capital: ₹590.11 (face value ₹10 per share)
  • Reserves and surplus: ₹83.22
  • Non-current liabilities: ₹38.30
  • Current liabilities: ₹219.50, including:
  • Trade payables: ₹200.23 (with outstanding dues to creditors other than micro/small enterprises)
  • Other current liabilities: ₹9.74
  • Short-term provisions: ₹9.53

Cash Flow Statement (H1 Ended 30.09.2026):

  • Cash flow from operating activities: ₹12.67
  • Cash flow from investing activities: Not quantified
  • Cash flow from financing activities: (₹12.50)
  • Net decrease in cash: ₹0.17
  • Cash and cash equivalents at end: ₹35.95

Segment Reporting

The Company has two reportable business segments:

1. Trading of goods

2. Consultancy services (newly identified segment in current period)

Segment Information (H1 Ended 30.09.2026, ₹ in Lakh):

  • Segment revenue: Consultancy services ₹29.32, Trading of goods ₹42.00
  • Total revenue from operations: ₹71.32
  • Segment results: Consultancy services ₹0.38, Trading of goods ₹42.00
  • Total segment assets: ₹931.13
  • Total segment liabilities: ₹257.80

Additional Notes

  • The financial results were reviewed by the Audit Committee and approved by the Board on 7th November 2026.
  • Results prepared in accordance with Accounting Standards under Companies Act, 2013 and SEBI Listing Regulations.
  • Revenue recognition: Sale of goods when risks/rewards transferred; consultancy services when rendered.
  • Current tax provision made at estimated rate of 22.50% on profit before tax.
  • Figures for half year ended 31st March 2026 are balancing figures between audited FY26 and unaudited H1 FY25 results.
  • Trade payables outstanding for more than one year classified under other long-term liabilities.
  • The Company has no subsidiaries, associates, or joint ventures.
  • Previous period figures have been regrouped/reclassified for comparability.

Financial Impact Assessment

The auditors' disclaimer indicates material uncertainties regarding the accuracy and completeness of financial statements covering assets totaling ₹8.48 crore (investments, loans/advances, inventories) and liabilities including trade payables of ₹2.00 crore. The final impact on profit/loss, assets, net worth and financial position could not be determined.