Key Financial Figures - Standalone (FY26)

  • Revenue from Operations: ₹245.00 lakhs (Previous year: ₹353.15 lakhs)
  • Total Income: ₹269.56 lakhs (Previous year: ₹353.15 lakhs)
  • Total Expenditure: ₹322.13 lakhs (Previous year: ₹513.63 lakhs)
  • Net Loss: ₹128.99 lakhs (Previous year: ₹184.25 lakhs)
  • Basic EPS: ₹-6.27 (Previous year: ₹-18.42)
  • Exceptional Items: ₹76.57 lakhs (Previous year: ₹23.76 lakhs)

Key Financial Figures - Consolidated (FY26)

  • Revenue from Operations: ₹257.71 lakhs (Previous year: ₹389.72 lakhs)
  • Total Income: ₹282.27 lakhs (Previous year: ₹389.72 lakhs)
  • Total Expenditure: ₹331.57 lakhs (Previous year: ₹556.03 lakhs)
  • Net Loss: ₹125.86 lakhs (Previous year: ₹189.63 lakhs)
  • Basic EPS: ₹-14.97 (Previous year: ₹-18.96)
  • Exceptional Items: ₹76.57 lakhs (Previous year: ₹23.76 lakhs)

Audit Qualifications

The auditors, H.G. Sarvaiya & Co., issued a qualified opinion with the following key issues:

Basis for Qualified Conclusion

1. Inadequate Accounting Records: Company used multiple ERP/project-accounting software without audit trail facility, maintained records partly manually and on spreadsheets, with inconsistencies in opening/closing balances, inventory accounting, depreciation methods, and asset capitalization/decommissioning.

2. Non-provision of Interest on Borrowings: Company did not provide for interest and penal charges aggregating ₹3,50,72,486 on delayed/overdue borrowings as at 31st March 2026:

  • Redfort Capital Finance Co. Pvt. Ltd. - I: ₹1,81,31,339 (Matter under Court of law)
  • Redfort Capital Finance Co. Pvt. Ltd. - II: ₹1,65,50,739 (Matter under Court of law)
  • Bajaj FinServ: ₹1,32,438 (Under restructuring)
  • Clix Capital: ₹38,995 (Under restructuring)
  • Neo Growth Credit Pvt. Ltd.: ₹62,524 (Under restructuring)
  • Insta Capital: ₹1,56,451 (Under restructuring)

Emphasis of Matter

1. Delayed Statutory Dues: Statutory dues aggregating ₹17,88,606 remained unpaid as at 31st March 2026:

  • PF: ₹34,795
  • ESIC: ₹17,549
  • TDS: ₹17,36,262
  • Others: ₹COL (amount not specified)

2. NPA Classification: Borrowings from Redfort Capital Finance Company Private Limited classified as non-performing assets, with legal proceedings pending before Arbitral Tribunal under directions of Hon'ble Delhi High Court.

Other Matters Disclosed

1. Preferential Issue: Company completed preferential issue of shares in compliance with SEBI and BSE regulations.

2. Settlement Negotiations: Company under discussion with all non-banking financial companies for settlement of dues, with final terms yet to be concluded.

3. No New Projects: Company has not undertaken any new projects pending settlement of the above matters.

4. Bank Account Lien: Company's bank account with Axis Bank, Bengaluru Branch under lien pursuant to income-tax recovery proceeding, which company is process of getting released.

5. ERP Implementation: Company should expedite implementation of ERP/accounting/project/supply-chain software to improve financial and project accounting accuracy.

Financial Restructuring

Company has decided to restructure its financial resources to align with payment of overdue statutory dues and overdue instalments/charges of banks and non-banking financial companies.

Impact of Audit Qualifications

Management provided quantification of audit qualification impact:

  • Total Expenditure would increase from ₹399 lakhs to ₹751 lakhs
  • Net Loss would increase from ₹129 lakhs to ₹481 lakhs
  • EPS would worsen from ₹-4.22 to ₹-15.73
  • Total Liabilities would increase from ₹1,922 lakhs to ₹2,272 lakhs
  • Net Worth would worsen from ₹-160 lakhs to ₹-512 lakhs

Management views that the interest liability matter is under arbitration and will be waived off.

Subsidiary Information

Consolidated results include RST Technologies Private Limited (subsidiary) with:

  • Total assets: ₹2.43 lakhs as at 31st March 2026
  • Total revenue: ₹0.50 lakhs (quarter) and ₹12.57 lakhs (year)
  • Net profit after tax: ₹0.50 lakhs (quarter) and ₹3.72 lakhs (year)

Dates of Significance

  • Board Meeting Date: 27th August 2026
  • Auditor's Report Date: 8th August 2026
  • Financial Period: Year ended 31st March 2026