Financial Performance Summary

Quarterly Performance (Q2 FY27 vs Q2 FY26)

  • Revenue from Operations: Collapsed to ₹1.24 lakhs (from ₹306.11 lakhs in Q2 FY26)
  • Other Income: ₹0.31 lakhs (from ₹0.71 lakhs)
  • Total Income: ₹1.55 lakhs (from ₹306.81 lakhs)
  • Net Loss: ₹183.89 lakhs (from ₹625.20 lakhs loss)
  • EPS (Basic): (₹0.37) per share (from (₹1.25))

Half-Yearly Performance (H1 FY27 vs H1 FY26)

  • Revenue from Operations: ₹123.91 lakhs (from ₹2,307.28 lakhs)
  • Other Income: ₹10.18 lakhs (from ₹14.13 lakhs)
  • Total Income: ₹134.09 lakhs (from ₹2,321.41 lakhs)
  • Net Loss: ₹541.77 lakhs (from ₹2,737.12 lakhs loss)
  • EPS (Basic): (₹1.08) per share (from (₹5.46))

Exceptional Items - Fire Incident

  • On May 18, 2025, fire destroyed company's mother unit at Plot No. C-4, Lote Parshuram Industrial Area, Ratnagiri, Maharashtra
  • Total uninsured loss recognized: ₹2,057.47 lakhs in previous periods
  • All production processes halted since the incident
  • Subsequent processing units dependent on mother unit also ceased operations
  • Company notified stock exchanges, Factory Inspector, and Labor Commissioner about suspension

Operational and Asset Impairment Challenges

  • Complete production stoppage due to fire damage
  • Company unable to pay salaries/wages to certain workers due to financial constraints
  • Unrecognized labor union initiated strike and protests blocking factory access
  • Professionals (valuers, engineers) refused to enter premises due to hostile worker behavior
  • Police complaint filed but no effective intervention obtained
  • Management believes substantial portion of Plant & Machinery severely damaged
  • Exact extent of loss unquantifiable without physical inspection

Going Concern Uncertainty

  • Management unable to commence manufacturing activities
  • Challenges include pending statutory clearances and operational constraints
  • Exploring contract manufacturing arrangements and facility leasing options
  • Evaluating recovery strategy and potential funding arrangements
  • Subject to regulatory approvals and consents

GST Contingent Liabilities

  • Received various GST notices/demand orders aggregating ₹3,810.93 lakhs
  • Pertaining to various assessment periods from previous year
  • Company filed appeals with relevant appellate authorities
  • No provision made in financial statements based on legal advice
  • Amount represents contingent liability excluding interest and penalty

Government Grants

  • Discontinued recognition of government grant income on accrual basis
  • Due to operational suspension and uncertainty about grant condition compliance
  • Recognition pending restoration of operations and compliance reassessment

Banking and Financial Details

  • Bank balance confirmations not obtained for accounts with book balance of ₹5.71 lakhs
  • Fixed deposit confirmations not obtained for deposits with book balance of ₹26.42 lakhs
  • Accounts and deposits in dormant status

Contractual and Revenue Recognition

  • Revenue recognition suspended for specific invoice under force majeure doctrine (Section 56, Indian Contract Act)
  • Advance from customer retained as "Other Current Liabilities – Force Majeure Suspense"
  • Treatment contingent on future legal adjudication

Balance Sheet Position (as at September 30, 2026)

  • Total Assets: ₹6,139.94 lakhs (from ₹7,159.29 lakhs year ago)
  • Property, Plant & Equipment: ₹3,662.52 lakhs (from ₹3,969.90 lakhs)
  • Current Assets: ₹893.22 lakhs (from ₹1,236.58 lakhs)
  • Equity: ₹4,420.53 lakhs (from ₹5,634.21 lakhs)
  • Current Borrowings: ₹969.03 lakhs (from ₹733.84 lakhs)
  • Trade Payables: ₹262.97 lakhs (from ₹451.44 lakhs)

Cash Flow Analysis (H1 FY27)

  • Operating Activities: Net cash used ₹10.05 lakhs
  • Investing Activities: Net cash generated ₹33.71 lakhs
  • Financing Activities: Net cash used ₹27.25 lakhs (interest payments)
  • Net decrease in cash: ₹3.58 lakhs
  • Cash equivalents at period end: ₹25.20 lakhs

Auditor's Modified Opinion

Gupta Rustagi & Co. issued limited review report with emphasis on:

  • Fire incident and operational suspension
  • Inability to quantify asset impairment
  • Going concern uncertainty
  • GST contingent liabilities of ₹3,810.93 lakhs
  • Suspension of government grant recognition
  • Dormant bank accounts and fixed deposits
  • Revenue recognition suspension due to force majeure