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 Matters Approved

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 Audit Committee recommendation.

  • Date of Appointment: 28th May 2026
  • Term: To conduct internal audit for FY ending 31st March 2027
  • Auditor Profile: Proprietary firm with 9 years experience in Assurance and Taxation services, based in Ahmedabad, Gujarat
  • Relationship: Not related to any directors of the Company

Audit Qualifications

The Statutory Auditors issued a Qualified Opinion with two significant qualifications:

Qualification 1: Related Party Loan Impairment

  • The Company advanced a loan of ₹1,460.22 Lakhs to a related party (identified as Cluster Enviro Private Limited, an associate concern)
  • The related party's net worth has turned negative with no active business due to ongoing legal issues
  • Management did not make any provision for impairment as required under Ind AS 109
  • Auditors state a provision of ₹1,460.22 Lakhs is required
  • Impact: Had provision been made, net loss for FY26 would have been higher by ₹1,460.22 Lakhs and reserves/surplus would have been lower by same amount

Qualification 2: Inventory Valuation

  • Company valued certain finished goods inventories at Net Realisable Value (NRV) amounting to ₹2,759.49 Lakhs against specific customer contracts
  • Since NRV exceeded cost, inventories were carried above cost, contrary to Ind AS 2 requirements
  • Auditors state inventories should be measured at cost
  • Impact: Inventory value overstated by ₹284.78 Lakhs, net loss understated by ₹284.78 Lakhs, total equity overstated by ₹284.78 Lakhs

Management's Response to Qualifications

For Loan Impairment

Management states the loan is strategic and fully recoverable, citing ongoing discussions with potential investors for revival plans and fund infusion. They are confident of recovery and therefore no provision was considered necessary.

For Inventory Valuation

Management states inventory was produced against specific confirmed export/local orders, but delivery was delayed due to geopolitical situation and shipment availability issues. Since inventory was produced for confirmed orders that were subsequently dispatched, they valued it at market price.

Financial Highlights (Standalone)

Balance Sheet Position as at March 31, 2026

  • Total Assets: ₹25,599.13 Lakhs (Previous: ₹22,189.53 Lakhs)
  • Total Equity: ₹14,213.42 Lakhs (Previous: ₹10,386.86 Lakhs)
  • Equity Share Capital: ₹2,730.44 Lakhs (Previous: ₹2,096.81 Lakhs)
  • Other Equity: ₹11,482.98 Lakhs (Previous: ₹8,290.04 Lakhs)
  • Total Liabilities: ₹11,385.72 Lakhs (Previous: ₹11,802.67 Lakhs)

Asset Composition

  • Non-Current Assets: ₹17,287.29 Lakhs (Property, plant & equipment: ₹16,340.06 Lakhs)
  • Current Assets: ₹8,311.84 Lakhs (Inventories: ₹3,377.78 Lakhs)

Liability Composition

  • Non-Current Liabilities: ₹3,794.78 Lakhs (Borrowings: ₹3,274.55 Lakhs)
  • Current Liabilities: ₹7,590.94 Lakhs (Borrowings: ₹5,754.07 Lakhs)

Cash Flow Statement

  • Net cash from operating activities: ₹859.18 Lakhs
  • Net cash used in investing activities: ₹4,481.19 Lakhs
  • Net cash used in financing activities: ₹3,648.13 Lakhs
  • Cash and cash equivalents at year-end: ₹40.38 Lakhs

Key Metrics

  • Earnings Per Share: Not ascertainable (qualified opinion)
  • Net Worth: ₹14,213.42 Lakhs

Additional Information

  • The financial results are available on company website (www.ishandyes.com) and stock exchange websites
  • The company has one reportable business segment: Chemicals
  • Previous period figures have been regrouped/rearranged/recasted where necessary
  • The audit qualifications appeared for the first time in FY26