Board Meeting Details

The Board of Directors meeting was held on November 12, 2026, commencing at 3:00 PM and concluding at 4:00 PM. The meeting approved the unaudited financial results and the limited review report from statutory auditors.

Financial Performance (Quarter Ended September 30, 2026)

  • Net Sales/Income from Operations: ₹0 (no business activity)
  • Other Income: ₹0
  • Total Income: ₹0
  • Employee Benefits Expenses: ₹0.66 lakh
  • Other Expenditure: ₹1.44 lakh
  • Total Expenditure: ₹2.10 lakh
  • Loss from Operations before tax: ₹(2.10) lakh
  • Tax Expenses: ₹0
  • Net Loss for the quarter: ₹(2.10) lakh
  • Total Comprehensive Income: ₹(2.10) lakh
  • Earnings Per Share (Basic & Diluted): ₹(0.21)

Financial Performance (Half Year Ended September 30, 2026)

  • Net Loss for half year: ₹(3.92) lakh
  • Total Comprehensive Income: ₹(3.92) lakh
  • Earnings Per Share (Basic & Diluted): ₹(0.39)

Capital Structure

  • Paid-up Equity Share Capital: ₹100.00 lakh (unchanged)
  • Reserves excluding Revaluation Reserve: ₹(327.28) lakh as of September 30, 2026 (₹(323.36) lakh as of March 31, 2026)
  • Net Worth: ₹(227.28) lakh as of September 30, 2026 (₹(223.36) lakh as of March 31, 2026)

Balance Sheet Position (as at September 30, 2026)

  • Total Assets: ₹2.77 lakh
  • Current Assets: ₹2.77 lakh (Cash & cash equivalents: ₹0.35 lakh, Bank balances: ₹0.19 lakh, Other current assets: ₹2.23 lakh)
  • Total Equity: ₹(227.28) lakh
  • Current Liabilities: ₹230.05 lakh (Borrowings: ₹104.86 lakh, Trade and other payables: ₹1.67 lakh, Other financial liabilities: ₹123.52 lakh)

Cash Flow Statement (Half Year Ended September 30, 2026)

  • Net cash used in operating activities: ₹(6.18) lakh
  • Net cash from financing activities: ₹6.20 lakh (proceeds from unsecured loans net)
  • Net increase in cash and cash equivalents: ₹0.02 lakh
  • Cash and cash equivalents (closing): ₹0.35 lakh

Auditor's Qualifications

The statutory auditors, N N K & Co., issued a modified limited review report with the following qualifications:

Basis of Qualification:

The Company has not provided interest on outstanding bank loan and other payables up to the quarter ended September 30, 2026, aggregating to ₹22,382.80 lakhs, which includes ₹982.21 lakhs for the quarter ended September 30, 2026. This non-provision is in terms of the order of the Mumbai Debts Recovery Tribunal - 1 dated October 8, 2002.

Debt Assignment History:

  • The original bank (Canara Bank) assigned its loan to Green Malabar Finance Venture Ltd.
  • Green Malabar Finance Ventures Limited assigned the debt to Capri Global Capital Limited via deed of assignment dated July 27, 2018
  • Capri Global Capital Limited assigned the debt to Alchemist Asset Reconstruction Company Limited, as trustee for the Alchemist XXXVI Trust, via deed of assignment dated August 6, 2018

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 obligations. The management believes the entity is a going concern despite these challenges.

Contingent Liability

There is a contingent liability towards the assigned debts worked out to ₹22,382.80 lakhs for the period from September 10, 1997 to September 30, 2026. The unprovided interest and other payables are:

  • For quarter ended September 30, 2026: ₹982.21 lakhs
  • For half year ended September 30, 2026: ₹1,910.13 lakhs
  • Comparative figures for previous year: ₹825.67 lakhs (quarter) and ₹1,603.78 lakhs (half year)

Business Activity and Segment Reporting

The company had no business activity during the current financial year or preceding financial year. Segment reporting as required under Ind AS 108 is not applicable.

Impact of Audit Qualifications

If the unprovided interest were recognized, the financial results would show:

  • Total Expenditure: ₹22,399.27 lakhs (instead of ₹3.92 lakhs)
  • Net Loss: ₹22,399.27 lakhs (instead of ₹3.92 lakhs)
  • Earnings Per Share: ₹(2,239.93) (instead of ₹(0.39))
  • Total Liabilities: ₹22,625.40 lakhs (instead of ₹230.05 lakhs)
  • Net Worth: ₹(22,622.63) lakhs (instead of ₹(227.28) lakhs)

Management's Going Concern Assessment

The company's ability to continue as a going concern is dependent upon infusion of funds for its operations. The company is planning to take various measures to arrange resources to gain more time for business recovery. The financial statements have been prepared on a going concern basis despite the accumulated losses and negative net worth.