Date: May 29, 2026

Board Meeting Outcomes

The Board of Directors meeting held on May 29, 2026 (4:00 PM to 6:00 PM) approved:

1. The Audited Financial Results of the Company for the quarter ended March 31, 2026

2. Audit Report from Statutory Auditor for the quarter ended on March 31, 2026 with modified opinion

Financial Results (Standalone)

Quarter Ended March 31, 2026 (₹ in Lakhs):

  • Total Income: (9.08)
  • Total Expenses: 342.32
  • Exceptional Items: 46.27
  • Profit/(Loss) before tax: (397.68)
  • Tax expense: 18.76
  • Net Profit/(Loss) after tax: (416.44)
  • Total Comprehensive Income: (416.44)
  • Paid-up Equity Share Capital: 5,010.12
  • Basic EPS: (0.83)
  • Diluted EPS: (0.83)

Year Ended March 31, 2026 (₹ in Lakhs):

  • Total Income: 2,391.44
  • Total Expenses: 3,973.16
  • Exceptional Items: 2,391.44
  • Profit/(Loss) before tax: (2,211.66)
  • Tax expense: (782.55)
  • Net Profit/(Loss) after tax: (1,429.11)
  • Other Comprehensive Income: 4.42
  • Total Comprehensive Income: (1,424.69)
  • Paid-up Equity Share Capital: 5,010.12
  • Basic EPS: (2.85)
  • Diluted EPS: (2.85)

Exceptional Items

Fire Incident (Uninsured Loss) - Recognized in earlier periods:

  • Inventories: ₹1,273.62 lakhs
  • Property, plant & Equipment (provisional): ₹700.00 lakhs
  • Other expenses: ₹83.85 lakhs
  • Total: ₹2,057.47 lakhs

Additional Write-off in Current Quarter:

  • Capital Work-in-Progress (CWIP) write-off: ₹46.27 lakhs relating to Factory Building and Plant & Machinery deemed non-viable

Operational Disruption

On May 18, 2025, a fire occurred at the Company's factory located at Lote Parshuram Industrial area (Plot No. C-4) in Ratnagiri, Maharashtra, resulting in significant damage to:

  • Inventories
  • Property, plant and equipment
  • Office area

All production processes have come to a complete halt. The C-4 unit was central to primary production activities, and all other owned/leased units were dependent on its output, resulting in complete cessation of operations at all facilities.

Impairment Assessment Challenges

The Company faces severe operational disruptions and cannot access premises due to:

  • Labor strike and protest by unrecognized union obstructing ingress/egress
  • Hostile behavior preventing technical experts from assessing damage
  • Official police complaint lodged but lack of effective intervention
  • Management unable to quantify exact extent of loss and damage

Going Concern Assessment

Management expressed inability to commence manufacturing activities due to:

  • Pending statutory clearances
  • Operational constraints
  • Exploring alternative options including contract manufacturing arrangements and/or leasing the facility
  • Evaluating recovery and rebuilding strategy with potential funding arrangements

Other Material Disclosures

Advance Recovery:

  • Full provision of ₹441.63 lakhs created earlier against advance from Omkar Speciality Chemicals Private Limited
  • Received ₹2.35 lakhs recovery pursuant to NCLT order
  • Balance amount written off as bad debts/advance

GST Contingencies:

  • Received notices/demand orders aggregating ₹3,810.93 lakhs for various assessment periods
  • Company has filed appeals/responses and is contesting matters
  • No provision made as management believes strong case on merits
  • Amounts represent contingent liabilities excluding interest and penalty

Government Grants:

  • Discontinued recognition of Government Grant income on accrual basis
  • Due to suspension of operations and uncertainty about fulfillment of grant conditions

Bank Balances:

  • Bank balance confirmation not obtained for accounts with book balance of ₹5.75 lakhs (dormant status)
  • Fixed deposits confirmation not obtained for book balance of ₹26.42 lakhs (dormant status)

Revenue Recognition Suspension:

  • Goods destroyed before transfer of risk or ownership
  • ₹10.56 lakhs advance retained as "Other Current Liabilities – Force Majeure Suspense"
  • Treatment contingent on future adjudication under Section 56 of Indian Contract Act, 1872

Qualified Opinion Basis:

1. Impairment of Tangible Assets: Unable to determine completeness and accuracy of financial impact from fire incident due to:

  • Incomplete assessment of actual loss/damage
  • Unable to determine carrying value of damaged assets
  • Unable to assess additional impairment requirements
  • Unable to assess recoverability of inventories and other assets

2. Impairment of Intangible Assets: ₹1,667.05 lakhs intangible assets (Patents, goodwill, software) not impairment tested despite indicators:

  • Software applications not in use
  • Indicators of impairment exist for patents and goodwill
  • No impairment assessment/valuation conducted

Emphasis of Matter:

  • Write-off of CWIP ₹46.27 lakhs as exceptional item
  • Fire incident and uninsured losses
  • Advance recovery from Omkar Speciality Chemicals and write-off
  • GST discrepancies and pending adjustments
  • Government grant recognition suspension
  • Dormant bank accounts and fixed deposits
  • Revenue recognition suspension due to force majeure

Statement on Impact of Audit Qualifications

Management unable to estimate impact of audit qualifications due to:

  • Inability to access premises for damage assessment
  • Labor unrest and obstruction preventing technical evaluation
  • Belief that intangible assets retain inherent economic value despite current operational challenges

Auditors do not concur with management's explanations, stating:

  • Sufficient time has elapsed since fire incident (May 2025 to March 2026)
  • Operational difficulties don't eliminate accounting standard requirements
  • No evidence that all reasonable alternative procedures were exhausted
  • Impairment assessment cannot be deferred despite potential future value