Summary of Key Information:
Reporting Period: Quarter ended March 31, 2026 and Year ended March 31, 2026
Nature of Filing / Announcement: Outcome of Board Meeting - Audited Financial Results
Date of Board Meeting / Approval: May 29, 2026 (commenced at 4:00 PM, concluded at 6:00 PM)
Audit Opinion: Qualified Opinion
Auditor's Comment: Qualified due to inability to quantify full impact of fire damage on tangible assets and lack of impairment assessment on intangible assets totaling ₹1,667.05 lakh
Key Financial Highlights [₹ in Lakhs]:
Standalone Results for Quarter Ended March 31, 2026:
Revenue from Operations: (9.08) [Negative revenue]
Total Income: 4.07
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)
EPS: (0.83) basic and diluted
Paid-up Equity Share Capital: 5,010.12 (Face Value ₹10 each)
Standalone Results for Year Ended March 31, 2026:
Revenue from Operations: 3,168.26
Total Income: 4,152.94
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)
EPS: (2.85) basic and diluted
Financial Position as at March 31, 2026:
Cash and cash equivalents: 28.78
Bank balances other than cash & cash equivalents: 40.89
Trade receivables: 4.12
Loans: 5.00
Other Financial Assets: 783.34
Other current assets: 1,043.71
Total Equity: 4,962.29 (Equity Share Capital: 5,010.13, Other Equity: (47.84))
Total Liabilities: 6,627.18
Segment-wise Performance:
The Company has a single business segment i.e., Active Pharmaceutical Ingredients (API). Therefore, segment information disclosure is not applicable under Ind AS 108.
Corporate Actions:
Not Specified
Auditor Appointments:
Statutory Auditor: Gupta Rustagi & Co., Chartered Accountants (Firm Registration No.: 128701W)
Partner: Niraj Gupta (M.No.: 100808)
Significant Disclosures:
1. Fire Incident: On May 18, 2025, a fire occurred at the Company's factory at Lote Parshuram Industrial Area, Ratnagiri, Maharashtra, causing significant damage to inventories, property, plant and equipment. The affected assets were not insured. Estimated losses recognized in earlier periods: Inventories ₹1,273.62 lakh, Property, plant & Equipment ₹700.00 lakh (provisional), Other expenses ₹83.85 lakh.
2. CWIP Write-off: During the quarter, the Company wrote off Capital Work-in-Progress amounting to ₹46.27 lakh relating to Factory Building and Plant & Machinery as projects were found non-viable.
3. Impairment Issues: Management unable to access factory premises due to labor unrest and protests, preventing proper assessment of fire damage extent. Plant & Machinery believed severely damaged but exact quantification not possible.
4. Going Concern: Management expressed inability to commence manufacturing due to operational constraints and pending statutory clearances. Exploring contract manufacturing arrangements and/or leasing the facility.
5. Advance Recovery: Received ₹2.35 lakh recovery from Omkar Speciality Chemicals Private Limited pursuant to NCLT order, with balance provision of ₹441.63 lakh written off as bad debts.
6. GST Demands: Received notices/demand orders under GST laws aggregating ₹3,810.93 lakh for various assessment periods. Company contesting matters based on legal advice, no provision made as management believes strong case.
7. Government Grants: Discontinued recognition of Government Grant income pending restoration of operations and reassessment of compliance with grant conditions.
8. Confirmation Issues: Bank balance confirmation of ₹5.75 lakh and fixed deposits confirmation of ₹26.42 lakh not obtained as accounts are dormant.
9. Force Majeure: Revenue recognition suspended for destroyed goods under Section 56 of Indian Contract Act, 1872. Advance of ₹10.56 lakh retained as liability under "Other Current Liabilities – Force Majeure Suspense".
Auditor's Qualified Opinion Basis:
1. Tangible Assets Impairment: Management has not completed assessment of actual loss/damage from May 2025 fire incident due to labor unrest preventing access to premises. Unable to determine carrying value of damaged assets, additional impairment, or recoverability of inventories.
2. Intangible Assets Impairment: Company carrying intangible assets of ₹1,667.05 lakh (Patents, goodwill, software). Software not in use, indicators of impairment exist for patents and goodwill, but no impairment assessment conducted.
Emphasis of Matter Items:
- Write-off of CWIP ₹46.27 lakh as exceptional item
- Fire incident causing uninsured losses and operational disruption
- Partial recovery of advance from Omkar Speciality Chemicals and bad debt write-off
- GST discrepancies in books vs returns and pending adjustments
- GST demand orders totaling ₹3,810.93 lakh under dispute
- Discontinuation of government grant recognition
- Dormant bank accounts and fixed deposits with unobtained confirmations
- Force majeure suspension of revenue recognition for destroyed goods
Cash Flow Statement Highlights [Year ended March 31, 2026]:
Net cash used in operating activities: (7.37)
Net cash from investing activities: 33.91
Net cash used in financing activities: (25.29)
Net decrease in cash and cash equivalents: 1.25
Cash and cash equivalents at beginning: 27.53
Cash and cash equivalents at end: 28.78
Statement on Impact of Audit Qualifications:
Management submitted statement to SEBI showing no adjustment to reported figures due to qualifications, maintaining:
- Turnover/Total Income: (5.08)
- Total Expenditure: 342.32
- Net Loss: (416.44)
- EPS: (0.83)
- Total Assets: 17,005.07
- Total Liabilities: 17,005.07
- Net Worth: 4,962.29
Management unable to estimate impact due to inability to access factory premises. Auditors do not concur with management's explanation, believing sufficient time has elapsed since May 2025 fire to complete assessment.