Board Meeting Details
The meeting commenced at 3:00 PM and concluded at 10:15 PM on May 30, 2026.
Matters Considered by Board
1. Standalone and Consolidated Financial Results: Approved for the Financial Year ended March 31, 2026 along with Audit Report
2. NSE Advisory Letter: Taken note of NSE advisory letter no. NSE/LIST/54060 dated May 15, 2026 regarding non-compliance under SEBI ICDR Regulations
3. Director Remuneration Revisions:
- Mr. Chennareddy Shivakumarreddy, Managing Director - effective April 13, 2026
- Mrs. Rajpeta Hanumenthareddy Kasthuri, Whole Time Director and CFO - effective April 1, 2026
- Mr. Chenna Reddy Sanketh Ram Reddy, Whole Time Director - effective April 1, 2026
All remuneration revisions are subject to shareholder approval
Financial Performance Highlights (Standalone)
Year Ended March 31, 2026 (₹ lakhs)
- Revenue from operations: ₹510.21
- Other income: ₹209.66
- Total income: ₹719.87
- Total expenses: ₹638.69
- Profit before tax: ₹81.17
- Net profit: ₹81.17
- Basic EPS: ₹0.23
- Diluted EPS: ₹0.23
Quarterly Performance (Q4 FY26)
- Revenue from operations: ₹63.78
- Other income: ₹17.09
- Total income: ₹246.43
- Total expenses: ₹211.67
- Profit before tax: ₹34.76
- Net profit: ₹34.76
- Basic EPS: ₹0.23
Balance Sheet Position (Standalone as at March 31, 2026)
- Total assets: ₹14,117.68 lakhs
- Non-current assets: ₹5,915.63 lakhs (including investments ₹2,834.07 lakhs)
- Current assets: ₹8,202.05 lakhs
- Total equity: ₹12,711.22 lakhs
- Current liabilities: ₹1,394.98 lakhs
- Net worth: ₹12,711.22 lakhs
Audit Qualifications (Standalone)
The auditors issued a qualified opinion with two main issues:
1. Subsidiary Investments: Company carries investments in certain subsidiaries at ₹2,834.07 lakhs. These subsidiaries have been consistently incurring losses with net worth fully or substantially eroded. Management has not carried out fair valuation or impairment testing as required by Ind AS 36. Unable to determine if impairment loss required.
2. Forex Compliance: Company has not reinstated forex balances for few receivables and payables including related party balances, not in conformity with IND AS 21. Unable to comment on possible effects.
Emphasis of Matter
Auditors highlighted four emphasis matters:
1. Trade receivables of ₹22.80 lakhs from BSNL outstanding since November 2003 with favorable court orders but no provision made
2. Trade receivables from related parties with no provision based on management's recoverability assessment
3. Unpaid dividend for FY 2008-09 not transferred to IEPF due to lack of investor details from SBI
4. Gratuity provision recognized but company yet to obtain compulsory gratuity insurance as required by Karnataka rules
Related Party Transactions
Significant transactions with related parties including:
- Samoro Telecoms Private Limited: Miscellaneous receipts ₹2,188.75 lakhs, payments ₹764 lakhs
- Advances given to related parties: ₹368.24 lakhs
- Amount receivable from related parties: ₹2,885.57 lakhs (Samoro Telecoms)
- Investments in subsidiaries: ₹1,457.18 lakhs (Eaicom India), ₹496.80 lakhs (Kavveri Technologies America), ₹880.09 lakhs (Kavveri Technologies Inc)
Consolidated Financials (Qualified Opinion)
- Revenue from operations: ₹842.09 lakhs
- Other income: ₹284.97 lakhs
- Total income: ₹1,127.06 lakhs
- Total expenses: ₹1,002.89 lakhs
- Profit before tax: ₹124.17 lakhs
- Net profit: ₹124.17 lakhs
- Basic EPS: ₹0.35
- Diluted EPS: ₹0.35
Auditors qualified consolidated opinion due to:
1. Exclusion of 7 subsidiaries from consolidation
2. Same qualifications as standalone regarding investments and forex compliance
Impact of Audit Qualifications
Management provided statement on impact:
- For subsidiary investments: Management in communication with subsidiaries to recover dues and turnaround companies. No provision considered necessary due to long-term nature and ongoing discussions.
- For forex non-compliance: Company in process of arriving at reinstated forex values, to be addressed in current financial year.