Financial Performance Highlights

Standalone Performance (₹ lakhs):

  • Total Revenue: ₹1,209.27 vs ₹436.53 (177% increase)
  • Profit Before Tax & Exceptional Items: ₹1,194.67 vs ₹124.00
  • Exceptional Item: Loss of ₹124.38 on OTS borrowings extinguishment
  • Net Profit: ₹745.36 vs ₹30.04 (2,381% increase)
  • EPS: ₹4.06 vs ₹0.16

Consolidated Performance (₹ lakhs):

  • Profit for the year: ₹689.92 vs ₹21.92
  • Total comprehensive income: ₹691.23 vs ₹20.58
  • Basic/Diluted EPS: ₹3.76 vs ₹0.12

Key drivers included interest income of ₹1,088.97 lakhs, recoveries of financial assets of ₹79.96 lakhs, and impairment reversal of ₹872.73 lakhs.

One Time Settlement Completion

The company successfully settled all outstanding bank borrowings under OTS scheme with multiple banks including Punjab National Bank, Bank of India, Indian Overseas Bank, and Central Bank of India. Total OTS payments amounted to ₹2,408.96 lakhs, with interest waived of ₹483.05 lakhs and principal waived of ₹358.67 lakhs. The net loss of ₹124.38 lakhs was treated as an exceptional item, and the company received No Dues Certificates from all lenders.

Loan Portfolio Analysis

The gross loan portfolio declined to ₹10,187.26 lakhs (PY: ₹12,561.43 lakhs) with 100% classified as Stage 3 (credit-impaired). Impairment allowance stood at ₹7,120.24 lakhs with coverage ratio of 69.89%. The entire portfolio is classified as NPA across industry (₹4,499.10 lakhs) and services (₹5,688.16 lakhs) sectors.

Capital Adequacy and Regulatory Compliance

The company remains non-compliant with RBI capital adequacy requirements:

  • CRAR: -1.44% (vs regulatory requirement of 15%)
  • Tier I Capital: Negative ₹234.14 lakhs
  • Risk Weighted Assets: ₹4,696.23 lakhs

Auditor Qualifications and Going Concern

Statutory auditors S.P. Chopra & Co. highlighted material uncertainty about the Group's ability to continue as going concern due to:

  • Accumulated losses of ₹11,111.02 lakhs
  • Non-carrying out lending/operational activities
  • Substantial erosion of net worth
  • Non-compliance with RBI capital adequacy norms

Additional qualifications included title deed issues for one immovable property, audit trail limitations in accounting software, and going concern uncertainties despite management's belief in promoter support and successful OTS completion.

Related Party Transactions

Material transactions included remuneration to MD Sanjeev Goel (waived for period 01.04.2025 to 30.06.2026), authorization for subsidiary Amulet Technologies to avail loans from Mr. Goel, and conversion of interest-bearing unsecured loan from Mr. Goel to interest-free loan. Outstanding loan from Director stood at ₹2,431.83 lakhs.

Subsidiary Performance

Amulet Technologies Limited (wholly-owned subsidiary) reported revenue of ₹2.34 lakhs and net loss of ₹14.80 lakhs, with net worth of negative ₹208.35 lakhs.

Corporate Governance and Compliance

Secretarial audit by Srishti Singh & Associates reported multiple filing delays with regulatory authorities, hand-written dates in minutes book, incomplete recording of director dissent, and board composition with only one executive director. The company implemented stricter monitoring protocols in response.

No dividend was recommended for FY 2025-26 due to paucity of funds, and the company maintained 35 employees with proper whistle blower mechanisms in place.