Financial Performance Highlights (Standalone, in ₹ lakhs)

Quarter Ended 30th June 2026:

  • Total Income: ₹0.96
  • Revenue from Operations: ₹0.00
  • Other Income: ₹0.36
  • Total Expenses: ₹6.51
  • Employee benefits expense: ₹1.92
  • Depreciation and amortization: ₹0.02
  • Other expenses: ₹4.57
  • Loss before tax: ₹(5.55)
  • Tax expense: ₹(1.33) (Deferred tax)
  • Net Loss: ₹(4.22)
  • Earnings Per Share: Basic and Diluted ₹(0.04)

Comparative Figures:

  • Quarter Ended 30th June 2025: Net Loss ₹(2.69)
  • Year Ended 31st March 2026: Net Profit ₹18.82

Capital Structure:

  • Paid-Up Equity Share Capital: ₹1,080.02 lakhs (unchanged)
  • Face Value per Share: ₹10.00 (unchanged)

Audit Qualifications and Review Findings

The statutory auditors, M/s. M A A K & Associates (FRN: 135024W), issued a limited review report with multiple qualifications:

1. Land Advances (₹2.09 crore): Advance against land (unsecured, considered good) amounting to ₹2,08,75,000 paid to certain parties where land registration remains incomplete. No registered agreements or party confirmations provided.

2. Memorandum of Association Compliance: The company organized a Polo Championship event (league-based format) while primarily engaged in advertising business per MoA. Auditors noted the company hasn't amended its MoA to specifically include event management or sports-related activities.

3. Revenue Recognition Issues: Revenue from the polo event during FY2024-25 and FY2025-26 lacks alignment with Ind AS 115 requirements. Insufficient audit evidence in form of agreements with sponsors, franchisees, or broadcasters. Unable to ascertain accurate revenue recognition timing.

4. Deposit Compliance Issues: Certain customer advances outstanding >365 days deemed deposits under Companies Act, 2013 (Sections 73-76). Out of originally reported ₹51 lakhs, ₹10 lakhs remains outstanding as deposits at quarter end. Company not complied with deposit acceptance provisions.

Emphasis of Matters

  • Investment in Khyati Retail & Eatery Pvt Ltd reported at book value without fair value evidence
  • During the quarter, management reclassified ₹41 lakhs of customer advances as inter-corporate deposits based on explanations and documentation

Annexure B - Impact Assessment of Audit Qualifications

Management provided the following views on audit qualifications:

For Quantified Qualifications:

  • Land advances of ₹2.09 crore considered recoverable with no impact on profitability
  • Polo event business defended as within Main Object clauses 1 and 4 of MoA
  • Revenue recognition based on cash receipt due to absence of written franchisee agreements
  • ₹40 lakhs of customer advances refunded/reclassified as inter-corporate deposits during quarter
  • Remaining ₹10 lakhs to be refunded/adjusted subject to fund availability

Management's Risk Assessment:

If land advances become unrecoverable, financial loss would increase to the extent written off, increasing debit balance of profit and loss account.