Financial Results Overview

Quarter Ended 30 June 2026 (Unaudited):

  • Revenue from Operations: ₹0.00 lakhs
  • Other Income: ₹0.36 lakhs
  • Total Income: ₹0.96 lakhs
  • Total Expenses: ₹6.51 lakhs (Employee benefits: ₹1.92 lakhs, Depreciation: ₹0.02 lakhs, Other expenses: ₹4.57 lakhs)
  • Loss before tax: ₹(5.55) lakhs
  • Tax expense: ₹(1.33) lakhs (Deferred tax)
  • Net Loss after tax: ₹(4.22) lakhs
  • Total Comprehensive Income: ₹(4.22) lakhs
  • Basic EPS: ₹(0.04)
  • Diluted EPS: ₹(0.04)

Comparative Figures:

  • Previous quarter (31 March 2026): Net Profit ₹30.10 lakhs
  • Same quarter previous year (30 June 2025): Net Loss ₹(2.69) lakhs

Capital Structure

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

Audit and Review Details

The financial results were:

  • Reviewed by Audit Committee on 13 August 2026
  • Approved by Board of Directors on 13 August 2026 in a meeting held from 5:30 PM to 7:30 PM
  • Subject to limited review by statutory auditors M/s. M A A K & Associates (FRN: 135024W)
  • Limited review report issued with UDIN: 26133926RYHRMK7980 on 13 August 2026

Audit Qualifications and Emphasis of Matters

Auditors raised multiple qualifications in their limited review report:

1. Land Advances (₹208.75 lakhs):

  • Advance against land paid to certain parties over years
  • Land registration not completed
  • No registered agreements or party confirmations provided

2. Memorandum of Association Compliance:

  • Company organized Polo Championship event in league-based format during FY2024-25
  • Company primarily engaged in advertising business per MoA
  • MoA not amended to specifically include event management/sports-related activities
  • Relevant expenses incurred in current period shown under prepaid expenses

3. Revenue Recognition Issues:

  • Revenue from Polo event during FY2024-25 and FY2025-26 lacks alignment with Ind AS 115
  • Issues with identification of enforceable rights, timing of performance obligations, allocation of transaction prices
  • Insufficient audit evidence in form of agreements with sponsors, franchisees, broadcasters
  • Unable to ascertain accurate revenue recognition period

4. Deposit Classification (Sections 73-76 of Companies Act, 2013):

  • Advances received from customers outstanding exceeding 365 days deemed as deposits
  • Company not complied with deposit acceptance provisions
  • Original aggregate: ₹51 lakhs
  • During quarter: ₹41 lakhs reclassified as inter-corporate deposits based on management explanations
  • Remaining outstanding: ₹10 lakhs continues as deemed deposits
  • Impact of non-compliance (interest, penalty) not determined

Emphasis of Matters:

  • Investment in Khyati Retail & Eatery Pvt Ltd reported at book value without fair value evidence
  • Reclassification of ₹41 lakhs from customer advances to inter-corporate deposits

Management Response (Annexure B)

Regarding Land Advances (₹208.75 lakhs):

  • Qualification self-explanatory and quantified
  • No financial impact on profitability as advances considered recoverable
  • Parties are available and approachable
  • Company pursuing recovery through reminders
  • If unrecovered, may need to write off, increasing financial loss

Regarding MoA Compliance:

  • Polo Championship event considered sports entertainment business
  • Covered by Main Object clauses 1 and 4 of MoA
  • Franchisee model-based event management is mode of doing business, not outside object scope

Regarding Revenue Recognition:

  • Based on auditor's opinion
  • No written franchisee agreements for Polo Championship Event
  • Rights and obligations not yet identified and defined
  • Revenue recognized on cash receipt and expense basis
  • First such event for company, no assurance of recurrence
  • Terms with franchisees not finalized or reduced to writing

Regarding Deposit Classification:

  • ₹51 lakhs received in January 2025 (FY2024-25) as advance against services
  • 365-day period completed in January 2026 (FY2025-26)
  • Intention was advance against advertisement, media coverage, polo event management
  • Company provided service options to parties, but lack of acceptance prevented invoice raising
  • Management decided to refund advances subject to fund availability
  • ₹40 lakhs refunded during quarter (reclassified as inter-corporate deposit with party consent)
  • ₹10 lakhs balance to be refunded/adjusted when funds available
  • No legal notices from regulators, hence impact not quantified

Regulatory Compliance Statements

  • No separate segment reporting (company operates in single segment)
  • No proceeds from public/rights/preferential issues in last 12 months
  • No outstanding defaults on loans/debt securities
  • No secured creditors
  • Default in refund of customer advances (non-interest bearing)
  • No related party transactions disclosure required (applicable half-yearly)
  • No penalty/fines imposed by regulators during quarter
  • No outstanding disputed tax litigations (direct or indirect)
  • No investments in unlisted companies during quarter