Board Meeting Details

The meeting of the Board of Directors was held on Monday, May 25, 2026, adjourned to Tuesday, May 26, 2026. It commenced at 4:30 PM and concluded at 6:30 PM at the registered office of the Company.

Board Approvals

The Board approved:

1. The Audited Financial Results for the quarter and year ended March 31, 2026

2. The Audit Report submitted by M/s Ratan Chandak & Co LLP, Chartered Accountants, Statutory Auditors of the company

Financial Results Highlights (Year Ended March 31, 2026)

Profit & Loss Statement (INR in Lakhs):

  • Total Income: Not explicitly quantified in provided excerpts
  • Tax Expense: Current Tax ₹-4.39 lakhs (credit), Deferred Tax ₹0.00, Total Tax Expense ₹0.00
  • Profit/(Loss) for the period from continuing operations: ₹-47.97 lakhs (loss)
  • Other Comprehensive Income: ₹0.00
  • Total Comprehensive Income for the period: ₹-47.97 lakhs (loss)

Balance Sheet Position (As at March 31, 2026, INR in Lakhs):

  • Total Assets: ₹1,950.63
  • Non-Current Assets: ₹1,859.93 (including Property, Plant and Equipment ₹0.26, Investments ₹5.00, Other non-current assets ₹1,854.67)
  • Current Assets: ₹90.70 (including Inventories ₹88.71, Cash & Cash Equivalents ₹1.16, Short-term Loans and advances ₹0.83)
  • Total Equity: Negative ₹74.96 (Equity Share Capital ₹500.00, Reserves and Surplus Negative ₹574.96)
  • Total Liabilities: ₹2,025.59
  • Non-Current Liabilities: ₹2,024.03 (including Borrowings from Bank ₹687.03, Loans from related Parties ₹1,317.64, Other Non-Current Liabilities ₹19.36)
  • Current Liabilities: ₹1.56 (including Trade Payables ₹0.91, Provisions ₹0.65)

Cash Flow Statement (Year Ended March 31, 2026, INR in Lakhs):

  • Net Cash Flow From Operating Activities: Negative ₹52.73
  • Net Cash Flow From Investment Activities: Negative ₹0.32
  • Closing Cash and Cash Equivalents: ₹1.16

Critical Auditor's Adverse Opinion

The Statutory Auditors, Ratan Chandak & Co LLP, issued an adverse opinion highlighting several critical issues:

a) Advances to Related Parties:

More than 99% of the company's assets comprise advances, deposits, receivables, and other balances recoverable from related parties towards acquisition of properties and rights. These related parties are currently under investigation by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act (PMLA), and the related assets have been attached by the ED. This raises significant concerns about the recoverability and valuation of these advances.

b) Related Party Liabilities:

Approximately 65% of the Company's liabilities are in the form of unsecured loans from related parties, who have beneficial interest in the properties for which the aforementioned advances were given. The entanglement of these transactions creates significant uncertainty about the completeness and accuracy of the Company's liabilities.

c) Default on Bank Borrowings:

  • The Company has defaulted in repayment of borrowings availed from Jalgaon Peoples Co-Op. Bank Ltd., with an outstanding amount of ₹687.03 lakhs as of February 2020
  • Jalgaon Peoples Co-Op. Bank Ltd. has transferred these loan accounts to ASREC (India) Ltd., an Asset Reconstruction Company
  • Interest on the outstanding balance has not been provided since the transfer
  • According to ASREC (India) Ltd., uncharged interest amounts to ₹390.34 lakhs and penal interest of ₹52.41 lakhs for the period from 01/03/2020 to 31/03/2024, totaling ₹442.75 lakhs
  • Additional uncharged interest for the period 01/04/2024 to 31/03/2026 works out to ₹268.67 lakhs
  • Consequently, the loss for the year is understated by ₹141.94 lakhs and the liability for the loan payable is understated by ₹711.42 lakhs

d) Uncertainty on Going Concern:

The Company is not in operation for more than 3 years. The Company's net worth is negative, further non-provisioning of interest as above and the Company has defaulted on the repayment of its bank borrowings, indicating severe financial distress and questioning the Company's ability to continue as a going concern.

Additional Notes from Financial Statements

1. The Audited Financial Results were reviewed by the Audit Committee and approved by the Board of Directors on 25/05/2026

2. The figures for the last quarter results (31/03/2026) are the balancing figures between the audited figures for the full financial year and published year-to-date figures up to the third quarter (31/12/2025)

3. The Statement has been prepared in accordance with Indian Accounting Standards (Ind AS)

4. The Board of Directors have not recommended a dividend

5. Figures for the previous period have been regrouped wherever necessary