Board Meeting Details

The Board of Directors meeting was held on Thursday, 28th May 2026, commencing at 5:30 PM IST and concluding at 6:30 PM IST.

Key Board Approvals

1. Audited Financial Results

The Board approved the Audited Standalone Financial Results for the Fourth Quarter and Financial Year ended 31st March 2026, along with the Auditors' Report issued by Statutory Auditors M/s A R Sulakhe & Co, Chartered Accountants (FRN: 110540W). The results were reviewed and recommended by the Audit Committee.

2. Appointment of Internal Auditor

The Board appointed M/s. H D Panchal & Co., Chartered Accountants (FRN: 148232W) as Internal Auditor for the Financial Year ending 31st March 2027, based on the recommendation of the Audit Committee.

  • Date of Appointment: 28th May 2026
  • Term: To conduct Internal Audit for FY ending 31st March 2027
  • Auditor Details: Proprietary firm with 9 years experience in Assurance and Taxation services, based in Ahmedabad, Gujarat
  • Address: A-202, Shukan Gold, Near Vandematram City, Chandlodia, Ahmedabad, Gujarat, India 382481
  • Relationship Disclosure: Not related to any Directors of the Company

Financial Results Overview

Balance Sheet Position (as at 31st March 2026)

  • Total Assets: ₹255.99 Cr (Previous year: ₹221.90 Cr)
  • Total Equity: ₹142.13 Cr (Previous year: ₹103.87 Cr)
  • Equity Share Capital: ₹27.30 Cr (Previous year: ₹20.97 Cr)
  • Other Equity: ₹114.83 Cr (Previous year: ₹82.90 Cr)
  • Total Liabilities: ₹113.85 Cr (Previous year: ₹118.02 Cr)
  • Non-Current Assets: ₹172.87 Cr (Previous year: ₹144.63 Cr)
  • Property, plant and equipment: ₹163.40 Cr (Previous year: ₹61.81 Cr)
  • Capital work-in-progress: ₹3.51 Cr (Previous year: ₹70.97 Cr)
  • Intangible Assets: ₹0.47 Cr (Previous year: ₹0.29 Cr)
  • Intangible Assets under Development: ₹0.43 Cr (unchanged)
  • Current Assets: ₹83.12 Cr (Previous year: ₹77.26 Cr)
  • Inventories: ₹33.78 Cr (Previous year: ₹35.53 Cr)
  • Trade receivables: ₹3.85 Cr (Previous year: ₹11.98 Cr)
  • Cash and cash equivalents: ₹0.40 Cr (Previous year: ₹0.14 Cr)
  • Financial Asset-Loans: ₹18.16 Cr (Previous year: ₹11.88 Cr)

Cash Flow Statement (FY ended 31st March 2026)

  • Net cash from operating activities: ₹8.59 Cr (Previous year: ₹11.61 Cr)
  • Net cash used in investing activities: ₹(44.81) Cr (Previous year: ₹(39.15) Cr)
  • Payments for acquisition of PPE and intangible assets: ₹(39.15) Cr (Previous year: ₹(42.14) Cr)
  • Loan given (Net): ₹(7.88) Cr (Previous year: ₹1.31 Cr inflow)
  • Net cash from financing activities: ₹36.48 Cr (Previous year: ₹27.53 Cr)
  • Proceeds from issue of shares: ₹39.92 Cr
  • Proceeds from Issue of Share Warrants: ₹5.39 Cr
  • Repayment of long term borrowings: ₹(4.87) Cr
  • Proceeds from short term borrowings: ₹3.06 Cr

Key Financial Metrics

  • Net loss before tax for FY26: ₹(4.96) Cr (Previous year: profit of ₹2.12 Cr)
  • Earnings Per Share: ₹(3.00) (Not ascertainable for previous period)
  • Finance Cost: ₹7.02 Cr (Previous year: ₹5.13 Cr)

Audit Qualifications

The Statutory Auditors, M/s A R Sulakhe & Co., issued a Qualified Opinion with two material qualifications:

Qualification 1: Loan Impairment

  • The Company advanced a loan of ₹14.60 Cr to related party Cluster Enviro Private Limited
  • The related party's net worth has turned negative with no active business due to ongoing legal issues
  • As per Ind AS 109, the Company should assess for impairment using Expected Credit Loss model
  • Management has not made any provision for impairment
  • Auditor's View: Provision of ₹14.60 Cr required
  • Impact if provision made: Net loss would be higher by ₹14.60 Cr, reserves and surplus lower by ₹14.60 Cr
  • Management's View: The loan is strategic and fully recoverable, with ongoing discussions with potential investors for revival plans and fund infusion. Management is hopeful for recovery and thus no provision considered necessary.

Qualification 2: Inventory Valuation

  • Company valued certain finished goods inventories at Net Realisable Value (NRV) of ₹27.59 Cr against specific customer contracts
  • As per Ind AS 2, inventories should be measured at lower of cost and NRV
  • Since NRV exceeded cost, Company carried inventories above cost, which is not compliant with Ind AS 2
  • Auditor's View: Inventories should be measured at cost
  • Impact if measured at cost: Inventory value would be lower by ₹2.85 Cr, net loss higher by ₹2.85 Cr, total equity lower by ₹2.85 Cr
  • Management's View: Inventory was produced for specific confirmed export/local orders, but supply was delayed due to geopolitical situation and shipment availability issues. Since the inventory was subsequently dispatched, it was valued at market price which would have been recorded as revenue if supplied on time.

Additional Information

  • The Company has one reportable business segment: Chemicals
  • Previous period figures have been regrouped/rearranged/recasted wherever necessary
  • The results are available on stock exchange websites and company website at www.ishandyes.com
  • The audit qualification is appearing for the first time