The financial results show the company reported a net loss of ₹1.81 lakh for the quarter ended 30th June, 2026, compared to a net loss of ₹1.21 lakh for the same quarter last year (30th June, 2025) and a net loss of ₹2.94 lakh for the previous quarter ended 31st March, 2026. The company reported no revenue from operations (Net Sales/Income from Operations and Other Income were both nil).

Total expenditure for the quarter was ₹1.81 lakh, comprising Employee Benefits Expenses of ₹0.44 lakh and Other Expenditure of ₹1.37 lakh. The company reported a loss from operations before tax of ₹1.81 lakh.

Earnings per share (EPS) for the quarter were negative ₹0.18 (basic and diluted) for shares of ₹10 each. Paid-up equity share capital remained unchanged at ₹100.00 lakh. Reserves excluding revaluation reserve stood at negative ₹323.36 lakh as of the year ended 31st March, 2026.

The statutory auditors issued a modified limited review report with two key qualifications:

1. Basis of Qualification: The company has not provided interest on outstanding bank loan and other payables aggregating to ₹21,425.68 lakhs for the period up to 30th June, 2026. This includes ₹940.46 lakhs specifically for the quarter ended 30th June, 2026. This non-provisioning is in terms of an order from the Mumbai Debts Recovery Tribunal - 1 dated October 8, 2002. The original bank (Canara Bank) assigned this loan to Green Malabar Finance Venture Ltd.

2. Material Uncertainty Related to Going Concern: The auditors draw attention to significant doubts about the company's ability to continue as a going concern due to accumulated losses, erosion of net worth, and insufficient cash flow from operations to meet its obligations. The management, however, maintains the view that the entity is a going concern.

Notes to Accounts:

  • Note 2 & 3 provide details on the contingent liability. The debt from Canara Bank was assigned to Green Malabar Finance Ventures Limited, which then assigned it to Capri Global Capital Limited, and subsequently to Alchemist Asset Reconstruction Company Limited (as trustee for the Alchemist XXXVI Trust). The total contingent liability for the debt, including unprovided interest, is ₹21,425.68 lakhs for the period from 10th September, 1997 to 30th June, 2026. The unprovided amount for the current quarter is ₹940.46 lakhs (₹900.50 lakhs for the previous quarter ended 31st March, 2026).
  • Note 4 reiterates the material uncertainty regarding the going concern assumption. The company's continuation is dependent upon the infusion of funds, and management is planning measures to arrange resources.
  • Note 5 states the company had no business activity during the current financial year or the preceding financial year.
  • Note 6 clarifies that the figures for the fourth quarter (not applicable here) are balancing figures between audited annual figures and published year-to-date figures up to the third quarter.

The financial impact of the unprovided interest and the contingent liability is significant but has not been quantified in the profit and loss statement for the quarter.