Key Quantitative Figures

Standalone Results (₹ in Lakhs):

For Half Year Ended 30/09/2026:

  • Revenue from Operations: ₹0.00
  • Other Income: ₹2,456
  • Total Income: ₹2,456
  • Total Expenditure: ₹258.39
  • Loss Before Tax: ₹(40.48)
  • Total Tax Expenses: ₹(0.14)
  • Net Loss for Period: ₹(40.34)
  • Earnings Per Share (Basic/Diluted): ₹(2.03)

For Quarter Ended 30/09/2026:

  • Revenue from Operations: ₹0.00
  • Other Income: ₹0.00
  • Total Income: ₹0.00
  • Total Expenditure: ₹18.10
  • Loss Before Tax: ₹(18.10)
  • Total Tax Expenses: ₹0.00
  • Net Loss for Period: ₹(18.10)
  • Earnings Per Share (Basic/Diluted): ₹(0.59)

Consolidated Results (₹ in Lakhs):

For Half Year Ended 30/09/2026:

  • Revenue from Operations: ₹0.00
  • Other Income: ₹24.56
  • Total Income: ₹24.56
  • Total Expenditure: ₹265.81
  • Loss Before Tax: ₹(40.48)
  • Total Tax Expenses: ₹(0.14)
  • Net Loss for Period: ₹(40.34)
  • Earnings Per Share (Basic/Diluted): ₹(2.03)

For Quarter Ended 30/09/2026:

  • Revenue from Operations: ₹0.00
  • Other Income: ₹0.00
  • Total Income: ₹0.00
  • Total Expenditure: ₹30.17
  • Loss Before Tax: ₹(30.17)
  • Total Tax Expenses: ₹0.00
  • Net Loss for Period: ₹(30.17)
  • Earnings Per Share (Basic/Diluted): ₹(0.99)

Dates of Action

  • Board Meeting Date: 13/11/2026 (Concluded at 09:15 PM)
  • Audit Committee Meeting Date: 07/11/2026
  • Auditor's Review Report Date: 03/11/2026

Parties Involved

  • Subsidiary: RST Technologies Pvt Ltd (Consolidated)
  • Statutory Auditors: H G Sarvaiya & Co., Chartered Accountants (Firm Registration No. 117507W)
  • Managing Director: Lalit Lajpat Chouhan (DIN: 00081816)
  • Lenders: Redfort Capital Finance Co. Pvt Ltd, Bajaj Fin Serve, Clix Capital, Neo Growth Credit Pvt Ltd, Insta Capital

Financial and Operational Impact

Audit Qualifications & Contingencies:

1. Unprovided Interest Costs: Auditors noted the company has not provided interest of ₹144.83 lakh (including previous periods) on delayed loans. If provided, H1 FY26 loss would increase to ₹175.00 lakh (standalone) and ₹174.00 lakh (consolidated), and EPS would be ₹(5.70) and ₹(5.72), respectively.

2. Statutory Dues Default: Default in payment of statutory dues amounting to ₹17,88,606 lakh (including PF: ₹34,795, ESIC: ₹17,549, TDS: ₹17,36,262).

3. NBFC Loan Overdues: Total overdue loans of ₹8.35 crore, primarily from:

  • Redfort Capital Finance Co. Pvt Ltd: ₹7.78 crore (under court arbitration)
  • Other NBFCs (Bajaj, Clix, Neo Growth, Insta): ₹57.87 lakh (under restructuring)

4. Bank Account Lien: A bank account with Axis Bank, Bangalore Branch, is under lien by Income Tax Recovery authorities.

Capital Structure Impact:

  • Share Capital: ₹306 lakh (unchanged)
  • Standalone Net Worth: ₹(189) lakh
  • Consolidated Net Worth: ₹(230) lakh

Cash Flow Implications:

  • Net cash used in operating activities: ₹(636) lakh (standalone and consolidated for previous year)
  • No significant cash flow from investing or financing activities in current period.

Purpose or Rationale

The results reflect the company's ongoing financial restructuring efforts to align with overdue payments to statutory authorities and NBFCs. The management is working on a debt restructuring plan and finalizing an ERP system implementation.

Forward-Looking Commentary

Management is working on restructuring its total debt with investors and NBFCs. The matter with Redfort Capital is under arbitration in Delhi High Court. The company is in the process of resolving the bank account lien with income tax authorities and finalizing its ERP project.