Board Meeting Details

  • Meeting Date: July 27, 2026
  • Commencement Time: 15:00
  • Conclusion Time: 16:30
  • Results approved by Board of Directors directly (Audit Committee meeting not held due to lack of quorum with only one Independent Director)

Financial Results - Standalone (₹ in lakhs)

Quarterly Performance (Q4 FY26)

  • Revenue from Operations: ₹802 lakhs (Q4 FY25: ₹727 lakhs)
  • Other Income: ₹1,259 lakhs (Q4 FY25: ₹1,230 lakhs)
  • Total Income: ₹2,061 lakhs (Q4 FY25: ₹1,966 lakhs)
  • Total Expenses: ₹2,228 lakhs
  • Loss before tax: ₹(167) lakhs
  • Tax Expense: ₹169 lakhs
  • Loss from Continuing Operations: ₹(338) lakhs
  • Loss from Discontinued Operations: ₹0
  • Net Loss for Q4: ₹(336) lakhs
  • Total Comprehensive Income: ₹(339) lakhs

Annual Performance (FY26)

  • Revenue from Operations: ₹2,596 lakhs (FY25: ₹2,617 lakhs)
  • Other Income: ₹5,791 lakhs (FY25: ₹5,627 lakhs)
  • Total Income: ₹8,387 lakhs (FY25: ₹8,244 lakhs)
  • Total Expenses: ₹6,549 lakhs
  • Profit before tax: ₹1,838 lakhs (FY25: ₹1,894 lakhs)
  • Tax Expense: ₹169 lakhs
  • Profit from Continuing Operations: ₹1,669 lakhs
  • Profit from Discontinued Operations: ₹0
  • Net Profit for FY26: ₹1,669 lakhs
  • Total Comprehensive Income: ₹1,675 lakhs

Capital Structure

  • Paid-up Equity Share Capital: ₹3,556 lakhs (Face Value ₹10/- each)
  • Other Equity: ₹13,605 lakhs (FY25: ₹11,933 lakhs)

Earnings Per Share (Face Value ₹10/- each)

  • Continuing Operations - Basic & Diluted: (0.09) for Q4, 0.47 for FY26
  • Discontinued Operations - Basic & Diluted: 0.00 for both periods
  • Total - Basic & Diluted: (0.09) for Q4, 0.47 for FY26

Financial Results - Consolidated (₹ in lakhs)

Annual Performance (FY26)

  • Total Income: ₹20,110 lakhs (FY25: ₹20,200 lakhs)
  • Loss before exceptional items: ₹(12,894) lakhs
  • Loss before tax: ₹(12,895) lakhs
  • Tax Income: ₹259 lakhs
  • Net Loss: ₹(13,154) lakhs
  • Loss attributable to equity holders: ₹(13,159) lakhs
  • Total Comprehensive Loss: ₹(12,877) lakhs

Capital Structure

  • Paid-up Equity Share Capital: ₹3,556 lakhs
  • Other Equity: Negative ₹(238,227) lakhs (fully eroded net worth)

Earnings Per Share (Face Value ₹10/- each)

  • Continuing Operations - Basic & Diluted: (3.70) for FY26
  • Discontinued Operations - Basic & Diluted: 0.00
  • Total - Basic & Diluted: (3.70) for FY26

Segment Information (Consolidated)

Revenue by Segment (FY26)

  • Machine Tools: ₹892 lakhs
  • Projects: ₹7,055 lakhs
  • Others (including Watch Assembly): ₹4,683 lakhs
  • Food Processing Machinery: ₹1,704 lakhs
  • Total Segment Revenue: ₹14,265 lakhs

Segment Results (FY26)

  • Machine Tools: Loss ₹(7,989) lakhs
  • Projects: Profit ₹124 lakhs
  • Others: Profit ₹1,794 lakhs
  • Food Processing Machinery: Profit ₹67 lakhs
  • Total Segment Result: Loss ₹(6,020) lakhs

Cash Flow Statement - Standalone (FY26)

  • Net cash from Operating Activities: ₹(415) lakhs
  • Net cash used in Investing Activities: ₹548 lakhs
  • Net cash from Financing Activities: ₹(69) lakhs
  • Net increase in cash: ₹64 lakhs
  • Opening cash balance: ₹211 lakhs
  • Closing cash balance: ₹275 lakhs

Audit Qualifications and Key Issues

Standalone Audit - Qualified Opinion (GRSM & Associates)

1. Inventory Valuation Issues:

  • Food Processing Machinery Unit, Aurangabad - Unable to verify accuracy of rates and costs
  • Auxiliary Business Company, Bengaluru - Valued inventories based on Chartered Valuer's report without adequate supporting evidence

2. GST Reconciliation: Auxiliary Business Company still reconciling input tax credit with GST portal for current and past periods

3. Fixed Asset Verification: No physical verification of Property, Plant & Equipment at Auxiliary Business Company during FY26

4. Expected Credit Loss: No ECL matrix prepared for financial assets as required by Ind AS 109

5. Receivable from Subsidiary: No allowance for expected credit losses on receivable from HMT Machine Tools Limited despite continued losses and negative net worth

6. External Confirmations: No external confirmations obtained for trade receivables, trade payables, other current liabilities, and other current assets

Consolidated Audit - Qualified Opinion

Additional issues across subsidiaries:

1. HMT Machine Tools Limited units:

  • Delay in remitting statutory dues (PF, Gratuity, GST, TDS/TCS)
  • Non-compliance with MSMED Act provisions
  • Unreconciled GST input tax credit
  • Various accounting irregularities at multiple units (Ajmer, Kalamassery, Hyderabad, Bangalore)

2. Subsidiary Closure: HMT Watches Ltd struck off by ROC on March 2, 2026

Significant Events and Transactions

1. Subsidiary Closure: HMT Watches Ltd struck off by Registrar of Companies u/s 248 of Companies Act, 2013 on March 2, 2026. Investment derecognized from books.

2. New Labour Code Implementation: Government notified four Labour Codes on November 21, 2025. Employee benefit obligations recognized based on ICAI guidance.

3. Going Concern Basis: Financial statements prepared on going concern basis considering realizable value of non-current assets held for sale and expected government support.

4. Segment Reporting: Segment information disclosed in consolidated financial statements as required by Ind AS 108.

Impact of Audit Qualifications

Management provided replies to audit qualifications stating:

  • Inventory valuations represent best estimates based on available records
  • GST reconciliations will be completed before filing annual returns
  • Physical verification of PPE will be carried out before next audit
  • ECL assessment process being strengthened
  • Recovery expected from subsidiary through asset monetization