Board Meeting Details

The meeting of the Board of Directors was held on Wednesday, 12th August, 2026, commencing at 4:30 PM and concluding at 5:15 PM. The board considered and approved the Unaudited Financial Results for the quarter ended 30th June, 2026 along with the Limited Review Report of the statutory auditors.

Financial Results (INR in Lakhs)

Income Statement Highlights for Quarter Ended 30/06/2026:

  • Total Income: ₹1.02 (consisting entirely of Other Income; Revenue From Operations: ₹0.00)
  • Total Expenses: ₹5.09
  • Employee benefits expenses: ₹2.04
  • Other expenses: ₹3.02
  • Depreciation and amortization expense: ₹0.03
  • Finance Cost: ₹0.00
  • Profit/(Loss) before tax: (₹4.07)
  • Tax expense: ₹0.00
  • Profit/(Loss) for the period: (₹4.07)
  • Earnings Per Share (Basic & Diluted): (₹0.08)

Comparative Figures:

  • Previous quarter (31/03/2026): Net Loss of (₹4.39) lakhs
  • Year-ago quarter (30/06/2025): Net Loss of (₹34.06) lakhs
  • Previous fiscal year (31/03/2026): Net Loss of (₹47.97) lakhs

Balance Sheet Position:

  • Paid-up equity share capital: ₹500.00 (Face Value ₹10/- each)
  • Reserves excluding revaluation reserves: (₹574.96)
  • Net Worth: (₹79.03) as reported, but (₹829.26) after auditor adjustments

Auditor's Adverse Opinion

The statutory auditors, Ratan Chandak & Co LLP, issued an adverse conclusion on the financial results citing four major areas of concern:

1. Advances to Related Parties: Over 99% of company assets comprise advances, deposits, and receivables from related parties currently under investigation by the Enforcement Directorate (ED) under PMLA, with related assets attached by ED, raising significant concerns about recoverability and valuation.

2. Related Party Liabilities: Approximately 65% of liabilities are unsecured loans from related parties who have beneficial interest in the properties for which advances were given, creating uncertainty about completeness and accuracy of liabilities.

3. Default on Bank Borrowings: The company has defaulted on repayment of borrowings from Jalgaon Peoples Co-Op. Bank Ltd. amounting to ₹687.03 lakhs outstanding as of February 2020, which was transferred to ASREC (India) Ltd. Interest has not been provided since:

  • Uncharged interest from 01/03/2020 to 31/03/2024: ₹390.34 lakhs
  • Penal interest for same period: ₹52.41 lakhs
  • Total historical interest: ₹442.75 lakhs
  • Uncharged interest from 01/04/2024 to 30/06/2026: ₹307.48 lakhs
  • Total understated liability: ₹750.23 lakhs
  • Q1 FY27 loss understated by: ₹38.80 lakhs

4. Going Concern Uncertainty: The company has not carried significant operational activities for over three years, has accumulated losses of ₹579.03 lakhs, eroded net worth, and defaulted on borrowings, indicating material uncertainty about ability to continue as a going concern.

Management's Response to Qualifications

The management provided detailed responses disputing the auditor's concerns:

  • For related party advances: Claims no link between the investigated companies and Manraj Housing Finance Limited except common management, and that management is cooperating with ED
  • For related party liabilities: States loans were extended transparently to support operations, but funds are stuck due to tenant resistance and ED attachment
  • For bank borrowing default: Mentions a one-time settlement (OTS) with ASREC was entered but revoked due to non-fulfillment conditions, and no interest provision made due to uncertainty over quantum and enforceability
  • For going concern: Believes financial position is temporary and remediable through liquidation of significant real estate assets once legal impediments are resolved

Financial Impact of Qualifications

The statement on impact of qualifications provides the following adjusted figures (INR in Lakhs):

  • Total Expenditure: ₹43.89 (vs. reported ₹5.09)
  • Net Profit/Loss: (₹42.87) (vs. reported (₹4.07))
  • Earnings per share: (₹0.86) (vs. reported (₹0.08))
  • Total Liabilities: ₹2,783.24 (vs. reported ₹2,033.01)
  • Net Worth: (₹829.26) (vs. reported (₹79.03))
  • Net Worth after considering uncharged interest for earlier years: (₹711.43)

Cash Flow Statement (INR in Lakhs)

For quarter ended 30/06/2026:

  • Net Cash Flow From Operating Activities: (₹5.20)
  • Net Cash Flow From Investment Activities: ₹0.04
  • Net Cash Flow From Financing Activities: ₹5.59 (primarily from borrowings from directors/relatives)
  • Net Change in Cash and Cash Equivalents: ₹0.43
  • Opening Cash & Cash Equivalents: ₹1.16
  • Closing Cash and Cash Equivalents: ₹1.59