Summary of Key Information:

Reporting Period: Quarter Ended June 30, 2026 (Q1 FY27)

Nature of Filing / Announcement: Unaudited Financial Results under Regulation 30 and 33 of SEBI LODR

Audit Opinion:

Disclaimer of Conclusion - The statutory auditors (B.K. Ramadhyani & Co. LLP) were unable to obtain sufficient appropriate evidence to provide a conclusion on the financial results due to multiple material uncertainties.

Key Financial Highlights [in ₹ Lakhs]:

Standalone Results:

Revenue from Operations: 42,503

Other Income: 837

Total Revenue: 43,340

Total Expenses: 46,573

Profit/(Loss) before tax: (3,247)

Tax Expense: 0

Net Profit/(Loss) for the period: (3,247)

Total Comprehensive Income: (3,247)

Paid-up equity share capital: 96,285 (Face value of ₹10 each)

Earnings Per Share (of ₹10 each):

Basic & Diluted (after extraordinary items): (0.34)

Consolidated Results:

Revenue from Operations: 42,503

Other Income: 837

Total Revenue: 43,340

Profit/(Loss) before tax: (3,225)

Net Profit/(Loss) for the period: (3,225)

Total Comprehensive Income: (3,225)

Paid-up equity share capital: 96,285

Earnings Per Share (of ₹10 each):

Basic & Diluted (after extraordinary items): (0.33)

Segment-wise Performance:

The company is primarily engaged in manufacturing, trading and servicing of telecommunication equipment and rendering other associated/ancillary services. The company operates primarily in India as a single geographical segment and is also engaged in Defence projects. The MCA notification dated February 23, 2018 exempts companies engaged in Defence production from segment reporting requirements.

Corporate Actions:

No dividends, share splits, bonus issues, buybacks, or capital raising activities were declared during the quarter.

Other Significant Information:

Major Contracts:

  • Signed contract on October 10, 2020 with Ministry of Defence for ASCON Phase IV project worth ₹8,280.36 Crore
  • Project includes installation, commissioning, and maintenance of telecom equipment, NMS, mobile nodes, and civil works
  • Implementation to be completed in three years with ten-year maintenance including two-year warranty
  • Proof of Concept activities ongoing, expected completion by December 31, 2026

Order Book and Going Concern:

  • Management believes going concern basis is appropriate despite net loss of ₹3,247 lakhs
  • Existing Order Book: ₹13,88,281 lakhs
  • Unbilled revenue: ₹2,34,615 lakhs expected to convert to billed revenue within 12 months
  • Adequate working capital borrowing sanctioned from consortium banks
  • Continued support of Government of India
  • Land monetization plans in progress

Unit-wise Issues Identified by Branch Auditors:

Palakkad Unit (M/s Balaram & Nandakumar):
  • Accounts receivable overdue >3 years: ₹8,986.69 lakhs (mainly from Govt/PSUs)
  • Provision for expected credit losses: Only ₹331.07 lakhs provided
  • Inventory includes old inventory without proper assessment of obsolescence
  • MSMED Act compliance issues - inadequate process for identifying suppliers and interest on delayed payments
  • Unbilled revenue of ₹1,165.86 lakhs (₹427.17 lakhs from earlier years)
Naini Unit (M/s Vinay Kumar & Co):
  • Inventory valuation issues - valued at cost instead of lower of cost or NRV: ₹1,541.37 lakhs
  • Provided interest on interest on provident fund: ₹38.17 lakhs
  • No provision for Gratuity, Paid Leave, Sick Leave, and Leave Travel Concession
Mankapur Unit (M/s PNG & Co):
  • Interest on loans allocated by corporate office: ₹107.96 lakhs
  • Inventory valuation issues - book value ₹2,844.18 lakhs without NRV assessment
  • Default on PF Trust payments: Outstanding ₹2,721.43 lakhs with late payment interest ₹52.18 lakhs
  • Interest on delayed gratuity and privilege leave: ₹13.36 lakhs recorded under exceptional items
Rae Bareli Unit (M/s Chandnani Singh & Associates):
  • Corporate allocated expenses in finance cost: ₹174.03 lakhs
  • Unbilled revenue balance: ₹146.88 crores pertaining to previous years
  • Lease agreement with NIFT expired November 2018, not renewed
  • GST burden on accrued rent due to non-realization from NIFT
  • Various long-pending advances and claims without provisions

Exceptional Items:

Finance Cost includes interest on outstanding statutory dues of provident fund and other taxes.

Confirmation and Reconciliation Issues:

Balances in creditors, advances from customers, debtors, claims recoverable, loans & advances, materials with fabricators, subcontractors/others, material in transit, deposits, loans, and other payables/receivables (Sales Tax, VAT, Excise Duty, Cenvat, Service Tax, GST, TDS) are under confirmation/reconciliation.

Investor Complaints:

Pending at beginning of quarter: Not specified

Received during quarter: Nil

Disposed of during quarter: Not specified

Remaining unresolved at end of quarter: Nil