Key Decisions and Approvals

  • The Board considered and approved the Unaudited Financial Results of the Company for the quarter and half-year ended September 30, 2026.
  • Pursuant to the recommendation of the Audit Committee, the Board approved the appointment of M/s. GAV & Associates, Chartered Accountants (ICAI Firm Registration No. 0036002N), as the Statutory Auditors of the Company. This appointment is subject to approval by the members at the 39th Annual General Meeting (AGM) to be held in 2027. The proposed term is for five years, commencing from the conclusion of the 39th AGM until the conclusion of the 44th AGM.

Financial Results Highlights (Standalone, Rs. in Lakhs)

Quarter Ended September 30, 2026 (Q2 FY27):

  • Total Income: ₹4.90 (consisting entirely of Other Income; Revenue from Operations was nil)
  • Total Expenses: ₹11.62
  • Finance Costs: ₹2.40
  • Depreciation: ₹0.03
  • Other Expenses: ₹9.19
  • Loss Before Tax: ₹(6.72)
  • Net Loss After Tax: ₹(6.72)
  • Earnings Per Share (Basic & Diluted): ₹(0.02)

Half-Year Ended September 30, 2026 (H1 FY27):

  • Total Income: ₹9.71
  • Total Expenses: ₹21.77
  • Loss Before Tax: ₹(12.06)
  • Net Loss After Tax: ₹(12.06)
  • Earnings Per Share (Basic & Diluted): ₹(0.03)

Comparative Figures (Quarter):

  • Net Loss for Q1 FY27 (ended June 30, 2026): ₹(5.34)
  • Net Loss for Q2 FY25 (ended September 30, 2025): ₹(8.36)

Balance Sheet Snapshot (as of September 30, 2026):

  • Total Assets: ₹400.81 Lakhs
  • Equity Share Capital: ₹4,017.25 Lakhs
  • Other Equity (Retained Earnings): ₹(21,984.54) Lakhs
  • Total Equity: ₹(17,967.29) Lakhs (negative)
  • Total Liabilities: ₹18,368.10 Lakhs

Cash Flow (H1 FY27):

  • Net Cash Used in Operating Activities: ₹(47.26) Lakhs
  • Cash and Cash Equivalents at period end: ₹7.33 Lakhs (down from ₹54.59 Lakhs at March 31, 2026)

Key Notes from Financial Statements and Auditor's Report

1. Going Concern: The auditor's report notes that the net worth of the company is fully eroded. However, in the opinion of the management, based on future business plans, the going concern concept is not vitiated.

2. IEPF Deposit: M/s Escorts Benefit Trust, on behalf of the Company, deposited the entire outstanding liability towards unclaimed fixed deposits and interest thereon amounting to ₹1,056.22 Lakhs with the Investor Education & Protection Fund (IEPF) on February 2, 2022.

3. Provisions: The Company has continued with provisions created earlier amounting to ₹699.70 Lakhs for doubtful trade receivables and ₹253.82 Lakhs for doubtful advances due to delays in collection.

4. RBI Registration: The Company is no longer registered with the Reserve Bank of India (RBI) as a Non-Banking Financial Institution (NBFI) after the cancellation of its registration effective May 6, 2016.

5. Segment Reporting: The Company has a single reportable segment: Consultancy/Advisory Services. However, it is noted that turnover/income is NIL post the name change from Escorts Finance Limited.

6. Deferred Tax Assets: Deferred Tax Assets have not been recognized due to a lack of virtual certainty regarding future taxable income.

7. Business Activity: The company's current focus is on the recovery of old delinquent loan assets from its earlier NBFC business through settlement, compromise, or legal action. The management is considering various options to undertake suitable new business(es).

New Auditor Profile

M/s. GAV & Associates is described as a professionally managed firm experienced in statutory and internal audits, management and financial consultancy, direct and indirect tax advisory, accounting compliance, secretarial services, and business process consulting.

Meeting Logistics

The Board Meeting commenced at 2:30 PM and concluded at 5:30 PM on October 29, 2026.