Interworld Digital Q1 FY27 Net Loss of ₹19.17 Lakh

Board Meeting Details

The Board of Directors meeting was held on August 12, 2026, at the registered office in New Delhi. The meeting commenced at 5:00 PM and concluded at 6:50 PM.

Key Agenda Items Approved

1. Considered and approved the Un-Audited Financial Results of the Company for the quarter ended June 30, 2026, along with the Limited Review Report (LRR) issued by the Statutory Auditors.

2. Took note of the resignation of Mrs. Shivangi Agarwal (A61069), Company Secretary and Compliance Officer (Key Managerial Personnel) of the Company, effective close of working hours on June 30, 2026. The disclosure regarding this resignation was already submitted to BSE on June 30, 2026.

3. Considered and approved the appointment of Ms. Hritika Verma (A79901) as the Company Secretary and Compliance Officer (Key Managerial Personnel) of the Company effective August 12, 2026, upon the recommendation of the Nomination and Remuneration Committee.

Financial Results Summary (Quarter Ended June 30, 2026)

• Total Income: ₹0.00 (No revenue from operations or other income)
• Total Expenses: ₹19.17 lakh
• Employee Benefits Expenses: ₹3.48 lakh
• Finance Costs: ₹0.01 lakh
• Other expenses: ₹15.68 lakh
• Loss before tax: ₹(19.17) lakh
• Tax Expense: ₹0.00
• Net Loss for the period: ₹(19.17) lakh
• Total Comprehensive Income: ₹(19.17) lakh
• Paid-up equity share capital: ₹4,783.77 lakh (face value of Re. 1/- per share)
• Earnings per share (EPS): Basic and Diluted both (0.00)

Comparative Figures

• Previous quarter (Q4 FY26): Net Loss of ₹(7.74) lakh
• Same quarter previous year (Q1 FY26): Net Loss of ₹(5.89) lakh
• Full year FY26: Net Loss of ₹(26.05) lakh

Auditor's Qualified Conclusion

The statutory auditors, Nemani Garg Agarwal & Co., issued a limited review report with a qualified conclusion citing five specific concerns:

1. Business Loss Due to Fraud: The past MD Mr. Manmohan Gupta had fraudulently shifted the entire business of the company including its Intellectual Property to his own entity. Consequently, there is no revenue from operations since a long time. The Company is making efforts to get back this business.

2. ROC Fees Payable: The Company had increased the authorized capital from ₹21 crores to ₹70 crores during FY 2010-2011. ROC fees of ₹55.97 lakh towards the same stands payable and provided in the books. No provision has been made for any interest or fines payable thereon. Company's writ petition challenging the revision in fees is pending in Delhi High Court (diary no. 159963 dated 30/05/2016). The impact of differential ROC fees payable is shown as Contingent Liability.

3. Statutory Dues Outstanding: Statutory dues of Service Tax/TDS/Professional Tax aggregating to ₹1.91 crore are outstanding since FY 2009-10. Service tax returns have not been filed from FY 2011-12 onwards. No provision has been made for interest/penalties payable on such default.

4. No Provision for Credit Loss: Company has not provided estimated credit loss on outstanding debtors as per IND AS-109, since management is of the opinion all receivables are good and realizable.

5. Investment Valuation Not Disclosed: Company has not disclosed realizable value of investments of ₹1.47 crore invested in unquoted non-current investments, hence impairment cannot be estimated.

Emphasis of Matters by Auditors

The auditors drew attention to:

• The Company has not disclosed information relating to outstanding balances of MSME enterprises.
• Company has defaulted in payment of Vehicle Loan taken from Kotak Mahindra Prime Limited. Outstanding Balance as on March 31, 2026 was ₹5.35 lakh as per books, but no confirmations from Bank were available.
• There is no business revenue in the company since a long time.
• There are no movement in majority of assets and liabilities of the company since a long time.

Management Explanations

Management provided explanations for the auditor's observations:

1. Regarding the business loss, the Board had constituted an Investigation Committee to investigate the closure of Mumbai Office and recovery of Company's business and assets.

2. Regarding ROC fees, the company has provided for fees payable as per Companies Act, 1956 and believes there is no further impact on financials.

3. Regarding statutory dues of ₹1.91 crore, the company has already provided for Service Tax payable and is making efforts to arrange funds for repayment.

4. Management believes debtors are fully realizable and no estimated credit loss is required.

5. Management assessment indicates no impairment provision on investments is required as there is no permanent diminution in value.

Other Disclosures

• The Company operates in a single segment.
• The Company has made payment of entire outstanding Annual Listing Fees since FY 2018-19 (including FY 2026-27 & applicable reinstatement Fees) to BSE.
• BSE has allowed trading of shares on Trade-for-Trade basis only on the first trading day of every week until outstanding ALF payment was made.
• Debit and Credit Balances are subject to confirmation from Parties.
• The figures for the quarter ended March 31, 2026 represent balancing figures between audited annual figures and published quarterly figures.

New Appointment Details

Ms. Hritika Verma appointed as Company Secretary and Compliance Officer:

• Appointment date: August 12, 2026
• Qualifications: Qualified Company Secretary and Associate Member of Institute of Company Secretaries of India, completed graduation from Chaudhary Charan Singh University of Meerut
• No relationship with any Director of the Company

Document Submission

The financial results and outcome of the meeting will be disseminated on the Company's website at www.interworlddigital.in.