Financial Performance Highlights

Quarter Ended September 30, 2026:

  • Revenue from Operations: Rs 4.25 lakhs
  • Other Income: Rs 0.09 lakhs
  • Total Income: Rs 4.34 lakhs
  • Total Expenses: Rs 18.12 lakhs
  • Loss Before Tax: Rs (13.78) lakhs
  • Net Loss: Rs (13.78) lakhs
  • Basic and Diluted EPS: Rs (5.57)

Half Year Ended September 30, 2026:

  • Revenue from Operations: Rs 8.49 lakhs
  • Other Income: Rs 0.19 lakhs
  • Total Income: Rs 8.68 lakhs
  • Total Expenses: Rs 41.11 lakhs
  • Loss Before Tax: Rs (32.43) lakhs
  • Net Loss: Rs (32.43) lakhs
  • Basic and Diluted EPS: Rs (13.12)

Balance Sheet Position as of September 30, 2026

  • Property, Plant and Equipment: Rs 73.98 lakhs
  • Investments: Rs 2.55 lakhs
  • Trade Receivable: Rs 82.05 lakhs
  • Cash and Cash Equivalents: Rs 2.09 lakhs
  • Total Assets: Rs 594.25 lakhs
  • Equity Share Capital: Rs 24.86 lakhs
  • Other Equity: Rs (87,004.07) lakhs
  • Total Equity: Rs (86,979.21) lakhs
  • Secured Borrowings: Rs 82,561.29 lakhs
  • Trade Payables: Rs 142.78 lakhs
  • Total Liabilities: Rs 87,573.46 lakhs

Cash Flow Statement (Half Year Ended September 30, 2026)

  • Net Cash Flow from Operating Activities: Rs 6.31 lakhs
  • Net Cash Used in Investing Activities: Rs (20.84) lakhs
  • Net Cash Used in Financing Activities: Rs (0.03) lakhs
  • Net Decrease in Cash: Rs (14.56) lakhs
  • Cash at Beginning: Rs 18.65 lakhs
  • Cash at End: Rs 4.09 lakhs

Significant Legal and Regulatory Matters

Debt to Lending Company:

  • The company had borrowed amounts from bankers aggregating Rs 825.61 crores including interest
  • Banks approached Debt Recovery Tribunal due to non-repayment
  • Bombay High Court approved transfer of debts to a "Lending Company" along with securities and mortgage charges
  • Bombay High Court passed a decree allowing the Lending Company to dispose/sell immovable property and flats belonging to the company
  • Total amount due to Lending Company as per decree as on September 30, 2026, with interest: Rs 875.07 crores (including interest of Rs 2.35 crores for the quarter)

Ground Lease Renewal:

  • Ground lease expired on May 22, 2017
  • Company applied for renewal of lease
  • Received demand notice for arrears of compensation/Special Way Leave fees including interest for period May 1, 2017 to July 31, 2026: Rs 30,82,69,490 (Rs 28,36,720 for quarter ended September 30, 2026)
  • Company contested the demand
  • Bombay High Court order dated August 25, 2026, squashed and set aside demand notices seeking retrospective payment of differential arrears of lease/tenancy

BMC Property Tax Dispute:

  • BMC introduced Capital Value System for property taxes from April 1, 2010
  • Property Owners Association challenged the proposal in Bombay High Court
  • Interim order dated February 25, 2014, to pay taxes at old rate plus 50% differential between old and new rates
  • Company provided taxes at old rate plus 50% differential in books
  • BMC filed Special Leave Petition in Supreme Court against the order
  • Company has not provided 50% differential amounting to Rs 1,57,01,073 as at September 30, 2026, pending disposal of SLP

Auditor's Qualified Opinion

JM & Associates issued a qualified opinion citing several issues:

1. Debt to Lending Company: Total amount due as per decree is Rs 87,506.73 lakhs as on September 30, 2026

2. Loans and Advances: Old balances of Rs 8.19 lakhs with no provision for doubtful items, resulting in overstatement of other current assets and understatement of loss

3. Trade Payables: Old balances of Rs 26.51 lakhs due for more than 20 years not claimed by creditors, should be written back

4. Credit Balances: Old credit balances of Rs 148.53 lakhs for which no writeback has been made

5. Investments: Investments in debentures/bonds aggregating Rs 0.09 lakhs destroyed in fire in 1998, no provision made

6. Confirmations: Non-availability of confirmations for secured/unsecured loans, debtors, certain bank balances, deposits, and creditors

7. BMC Property Tax: Non-provision of 50% differential amounting to Rs 1,57,01,073

8. Employee Benefits: Provision for gratuity and long-term compensated absences made on arithmetical basis instead of actuarial valuation as required by Ind AS 19

Material Uncertainty Regarding Going Concern

  • Company incurred net loss of Rs 13.78 lakhs for quarter ended September 30, 2026
  • Accumulated losses: Rs 87,199.34 lakhs resulting in negative net worth
  • Management evaluating various options to revive company
  • Lending Company provided support letter to extend financial support for foreseeable future
  • Management assessed company continues as going concern based on this support

Other Significant Disclosures

  • Company's shares suspended for trading on stock exchanges since 2005 due to non-payment of listing fees
  • Company operation is one segment, no separate segment reporting
  • Company in process of restructuring debts following one-time settlement with bankers
  • Company accounted for rent due from tenants based on being holding out tenant as per legal opinion

Impact of Audit Qualifications

As per the Statement of Impact of Audit Qualifications:

  • If adjustments were made for all qualifications, net loss would increase from Rs (32.43) lakhs to Rs (4,967.68) lakhs
  • Negative net worth would increase from Rs (86,979.21) lakhs to Rs (91,914.46) lakhs
  • EPS would change from Rs (12.09) to Rs (2,009.40)

Management Certification

CEO and CFO certified that the financial results:

  • Do not contain any false or misleading statements
  • Present a true and fair view of company's affairs
  • Are in compliance with accounting standards and applicable laws

Board Meeting Details

  • Date: November 13, 2026
  • Time: Commenced at 3:00 PM, concluded at 6:00 PM
  • Documents reviewed: Unaudited financial results, Qualified Limited Review Report, CFO Certificate, Statement of Impact Qualification