Board Meeting Agenda and Outcome
The single agenda item was "Approval of Unaudited 1st Quarterly Report & Financials period ended for 30th June Stand-Alone and Consolidated Account of the Company Proposal for issue of shares." The outcome recorded was: "The Financials 1st Qtr are Passed by Board and Audit Committee."
Independent Auditor's Report (Consolidated and Standalone)
The company's auditor, Hasmukhbhai G. Sarvaiya (Membership Number: 045038), issued reports dated September 3, 2026, on both the consolidated and standalone unaudited financial results for the quarter ended June 30, 2026, pursuant to Regulation 33 of SEBI LODR.
Both reports contained a qualified opinion with the following basis:
1. ERP Software Issues: The company used multiple ERP project accounting software under testing that lacked an audit trail (edit log) facility. Books were maintained partly manually and on Excel sheets. This issue was reported for both standalone and consolidated accounts.
2. Unpaid Statutory Dues: The company had provided for but not paid statutory dues totaling ₹17,88,606 lakhs, broken down as:
- Provident Fund (PF): ₹34,795 lakhs
- ESIC: ₹17,549 lakhs
- TDS: ₹17,36,262 lakhs
3. Outstanding Overdue Loans from NBFCs: The company disclosed significant overdue amounts on various working capital loans, which are under restructuring or court proceedings.
Detailed Breakdown of Overdue Loans (Standalone)
The total outstanding overdue, including principal, interest, and penal charges, was ₹8,35,44,270. The breakdown is as follows:
| Lender | Nature | Principal Not Paid (₹) | Interest & Charges (₹) | Total (₹) | Status |
| Redfort Capital Finance co. (2 loans) | Pre-sales working capital | 4,30,71,710 | 3,46,82,078 | 7,77,53,788 | Matter under Court of law (Declared NPA; proceeding under Delhi High Court direction; pending in arbitration) |
| Bajaj FinServe | Working Capital | 14,78,000 | 1,32,438 | 17,67,081 | Under process of restructuring |
| Clix Capital | Working Capital | 11,50,000 | 38,995 | 13,49,374 | Company under process of restructuring |
| Neo growth Credit Pvt Ltd | Working Capital | 8,75,000 | 62,524 | 12,58,165 | Company under process of restructuring |
| Insta Capital | Working Capital | 5,50,000 | 1,56,451 | 14,12,902 | Company under process of restructuring |
| Total | | 4,71,24,710 | 3,50,75,486 | 8,35,44,270 | |
Emphasis of Matter
The auditor emphasized two points:
1. The company has decided to restructure its financial resources to align with the payment of overdue statutory dues and NBFC loans.
2. The company needs to finalize its ERP project and accounting software integration.
Other Matter (Subsidiary)
The auditor did not review the interim financial results of one subsidiary included in the consolidated statement. This subsidiary had total assets of ₹2.43 lakhs as of June 2026, total revenues of ₹0.00 lakhs for the quarter, a net loss of ₹0.29 lakhs for the quarter, and other comprehensive income of NIL. These results were reviewed by the subsidiary's Management Committee.
Other Matter (Figures)
The results for the quarter ended June 30, 2026, and the corresponding quarter of the previous year are balancing figures between the audited figures in respect of the full financial year which were subjected to a limited review.