Key Quantitative Figures

Standalone Financial Results (₹ in lakhs):

  • Revenue from operations: ₹726.12 for FY26 (vs ₹77.85 for FY25)
  • Other income: ₹44.90 for FY26 (vs ₹21.73 for FY25)
  • Total income: ₹771.02 for FY26 (vs ₹99.58 for FY25)
  • Net loss: ₹69.43 for FY26 (vs ₹111.51 for FY25)
  • EPS: (₹0.04) for FY26 (vs (₹0.06) for FY25)
  • Accumulated losses: ₹2,216.82 as at March 31, 2026 (vs ₹2,147.43 as at March 31, 2025)
  • Inventory value: ₹631.92 as at March 31, 2026
  • Cash and cash equivalents: ₹424.71 as at March 31, 2026
  • Paid-up equity share capital: ₹3,838.01 (Face value ₹2 per share)

Consolidated Financial Results (₹ in lakhs):

  • Revenue from operations: ₹4,416.07 for FY26 (vs ₹4,797.40 for FY25)
  • Other income: ₹96.61 for FY26 (vs ₹418.32 for FY25)
  • Net profit: ₹73.27 for FY26 (vs loss of ₹414.43 for FY25)
  • EPS: ₹0.03 for FY26 (vs ₹0.22 for FY25)
  • Accumulated losses: ₹603.94 as at March 31, 2026
  • Inventory value: ₹5,662.80 as at March 31, 2026
  • Cash and cash equivalents: ₹479.80 as at March 31, 2026

Audit Qualifications and Emphasis of Matter

The statutory auditors, R H Modi & Co., have highlighted several key matters:

Material Uncertainty Related to Going Concern

  • The Company has incurred total accumulated loss of ₹2,216.82 lakhs for FY26
  • Financial results prepared on going concern basis subject to Company strengthening strategy, expanding market, increasing sales, and availability of promoter support

Emphasis of Matter Points:

1. Interest non-accrual for subsidiary loan: Interest income not accrued for loan given to subsidiary Minal Infojewels Limited (₹1,187.96 lakhs principal + ₹276.99 lakhs interest overdue) due to subsidiary's accumulated losses and inability to pay interest

2. Subsidiary write-off: Minal International FZE (overseas subsidiary) wound up on February 10, 2025. Company wrote off investment of ₹18.37 lakhs and loan receivable (including interest) of ₹390.61 lakhs during FY25, total write-off ₹408.99 lakhs

3. NCLT petition: Managing Director Shri Shrikant Parikh filed petition before NCLT under Section 59 against Mr. Mahendra Shah and Mr. Champaklal Mehta regarding ownership dispute of equity shares. No final order passed as of reporting date, no financial implication expected

Key Audit Matter

  • Inventory valuation: ₹631.92 lakhs inventory valued at lower of cost or net realizable value requiring significant audit attention due to business nature, reduced operations, and judgment involved

Internal Financial Controls

  • Auditors issued disclaimer of opinion on adequacy and operating effectiveness of Company's internal financial controls over financial reporting
  • Company has not established internal financial control over financial reporting on criteria based on essential components of internal control

Subsidiary Information

Minal Infojewels Limited (Subsidiary)

  • Company created provision of ₹600 lakhs for impairment in value of equity investments
  • Company created provision of ₹1,200 lakhs for impairment in value of loans given
  • Interest income not accrued due to subsidiary's accumulated losses

Minal International FZE (Overseas Subsidiary)

  • Wound up business on February 10, 2025
  • Commercial license expired on February 10, 2025
  • Full write-off of investment and loans totaling ₹408.99 lakhs during FY25

CARO 2020 Reporting Qualifications:

The auditors reported qualifications in the CARO report for both holding company and subsidiary:

Minal Industries Limited:

  • Clause i(a)(A): Not maintained proper records showing full particulars of fixed assets
  • Clause i(b): No physical verification of fixed assets conducted
  • Clause iii(d): Overdue loans of ₹1,464.95 lakhs with reasonable steps not taken for recovery
  • Clause vii(b): Income tax dispute of ₹30.74 lakhs for AY 2012-13 pending with Commissioner of Income Tax (Appeal)
  • Clause xvii: Company incurred cash losses of ₹22.71 lakhs in FY26 and ₹61.38 lakhs in FY25

Minal Infojewels Limited (Subsidiary):

  • Multiple CARO report qualifications noted

Other Statutory Compliance:

  • Unclaimed dividends of ₹1.89 lakhs not transferred to Investor Education and Protection Fund
  • No default in repayment of loans or borrowings
  • No fraud reported during the year
  • Generally regular in depositing undisputed statutory dues

Parties Involved

  • Auditors: R H Modi & Co., Chartered Accountants
  • Stock Exchange: BSE Limited
  • Regulator: SEBI
  • Subsidiaries: Minal Infojewels Limited, Minal International FZE, RSBL Jewels
  • Individuals: Shrikant Jesinglal Parikh (Managing Director), Rajendra Harkisondas Modi (Auditor)

Dates of Action

  • Financial period: Quarter and year ended 31st March 2026
  • Board approval: 4th June 2026
  • Auditor's report date: 4th June 2026
  • BSE submission date: 13th June 2026
  • Minal International FZE winding up: 10th February 2025

Capital Structure Impact

  • No change in paid-up equity share capital of ₹3,838.01 lakhs
  • Other equity negative at (₹130.87) lakhs for standalone
  • No dividend declared or paid during the financial year

Financial and Operational Impact

  • The going concern basis preparation may have adverse effect on Company functioning
  • Write-off of overseas subsidiary investment and loans totaling ₹408.99 lakhs
  • Non-accrual of interest income from subsidiary loan due to uncertainty of realization
  • Provisions for impairment of investments (₹600 lakhs) and loans (₹1,200 lakhs) in subsidiary

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