Independent Auditor's Review Report on Quarterly Financial Results

Auditor's Qualifications and Emphasis of Matter

The auditor, S K Bhavsar & Co. (Firm No. 145880W), issued a review report with several emphasis of matter points:

  • Loans and Advances Concerns: The company has provided loans and advances of ₹295.07 lakhs for an extended period without receiving balance confirmations from parties. The auditor is unable to form an opinion on the recoverability of these loans.
  • NPA Norms Non-Compliance: Management has recorded interest income on these loans without following RBI's NPA norms for provisioning. The company has not been following NPA norms for provisioning on these loans for an extended period.
  • Income Tax Demand: The company has an outstanding income tax demand of ₹529.75 lakhs. The auditor could not obtain documentary evidence about the forum where proceedings are pending, making it difficult to verify the duration and quantum of the amount payable.
  • Investment Verification: The auditor was unable to obtain sufficient evidence to verify the correctness and existence of investments as at September 30, 2026, due to lack of detailed records and physical verification statements.

Financial Results Performance

Quarter Ended September 30, 2026 (Unaudited):

  • Revenue from Operations: ₹20.21 lakhs
  • Total Expenses: ₹25.93 lakhs
  • Loss before tax: ₹(5.72) lakhs
  • Net Loss: ₹(5.72) lakhs
  • Basic EPS: (₹0.13) per share

Quarter Ended June 30, 2026 (Unaudited):

  • Revenue from Operations: ₹20.21 lakhs
  • Profit before tax: ₹14.85 lakhs
  • Net Profit: ₹14.85 lakhs
  • Basic EPS: ₹0.34 per share

Half Year Ended September 30, 2026 (Unaudited):

  • Total Revenue: ₹40.41 lakhs
  • Profit before tax: ₹9.12 lakhs
  • Net Profit: ₹9.12 lakhs
  • Basic EPS: ₹0.21 per share

Comparative Figures (Audited):

  • Year ended March 31, 2026: Net Profit of ₹1.50 lakhs with Basic EPS of ₹0.03

Balance Sheet Position (as at September 30, 2026)

Assets:

  • Total Assets: ₹407.85 lakhs (vs. ₹337.10 lakhs as at March 31, 2026)
  • Non-Current Assets: ₹360.50 lakhs (including Loans: ₹295.07 lakhs, Investments: ₹65.00 lakhs)
  • Current Assets: ₹47.35 lakhs (including Cash: ₹1.40 lakhs, Trade Receivables: ₹12.24 lakhs)

Equity and Liabilities:

  • Equity Share Capital: ₹441.92 lakhs (unchanged)
  • Other Equity: ₹(122.10) lakhs (negative)
  • Non-current liabilities (Borrowings): ₹70.50 lakhs (significant increase from ₹9.42 lakhs)
  • Current liabilities: ₹17.53 lakhs

Cash Flow Statement (Six Months Ended September 30, 2026)

  • Net cash used in operating activities: ₹(21.14) lakhs
  • Net cash from financing activities: ₹22.29 lakhs (mainly from increased borrowing of ₹61.08 lakhs)
  • Net increase in cash: ₹1.15 lakhs
  • Closing cash balance: ₹1.40 lakhs

Additional Information

  • Share Capital: Paid-up equity share capital remains at ₹441.92 lakhs with face value of ₹10.00 per share
  • Approval Dates: Results reviewed by Audit Committee and approved by Board of Directors on November 7, 2025
  • Accounting Standards: Prepared in accordance with Ind AS 34 and relevant provisions of Companies Act, 2013
  • Segment Reporting: No reportable segments as per Ind AS requirements