Key Financial Figures

Income Statement (Rs. in lakhs)

  • Interest Income: Rs. 1,195.83 for FY26 (vs. Rs. 101.88 in FY25)
  • Total Income: Rs. 1,196.92 for FY26 (vs. Rs. 101.88 in FY25)
  • Finance Cost: Rs. 981.47 for FY26 (vs. Rs. 12.71 in FY25)
  • Impairment on Financial Instruments: Rs. 342.38 for FY26 (vs. Rs. 12.94 in FY25)
  • Net Loss: Rs. (142.81) for FY26 (vs. Net Profit of Rs. 1.22 in FY25)
  • Basic & Diluted EPS: Rs. (0.14) for FY26 (vs. Rs. 0.00 in FY25)

Balance Sheet (as of March 31, 2026, Rs. in lakhs)

  • Total Assets: Rs. 19,024.51
  • Financial Assets: Rs. 18,906.90 (including Loans: Rs. 18,521.86, Other Investments: Rs. 61.68)
  • Borrowings: Rs. 17,792.69
  • Equity Share Capital: Rs. 999.96
  • Other Equity: Rs. (68.91)

Cash Flow (FY26, Rs. in lakhs)

  • Net cash from Operating Activities: Rs. 1,006.83
  • Net cash used in Investing Activities: Rs. (7.05)
  • Net cash used in Financing Activities: Rs. (1,001.04)
  • Cash and cash equivalents at year-end: Rs. 9.93 (Cash in hand: Rs. 5.56, Bank balances: Rs. 4.36)

Auditor's Qualified Opinion

The statutory auditors, M/s JCR & Co. LLP, issued a qualified opinion with the following basis:

1. ECL Provision Reversal: The company reclassified a loan account from "Doubtful Asset" to "Sub-Standard Asset" and reduced Expected Credit Loss (ECL) provision by Rs. 1.84 crore based on TDS of Rs. 14.42 lakhs deposited by the borrower through late filing after the audit period, expecting recovery by May month end. However, no actual recovery was made until the reporting date, resulting in understated ECL provision and loss.

2. Unprovided Interest Expense: Interest expense of approximately Rs. 2.43 crores was not provided for one borrower, and additional interest of Rs. 3.38 crores was not provided in few loan accounts where loan documents were unavailable with management. This understates finance cost and current liabilities.

3. Investment Documentation: The company shows quoted and unquoted investments of Rs. 62.96 lakhs but lacks ownership documentation, making the carrying value unverifiable.

Regulatory Compliance Issue

The auditors noted that the company did not obtain prior written permission from RBI for a change in management during FY 2024-25, which may result in monetary penalties, voiding of acquisition transactions, and potential regulatory actions.

Board Approval Details

  • The Board meeting was held on May 26, 2026, from 7:00 PM to 8:45 PM
  • The Audit Committee reviewed the results before board approval
  • The financial results were prepared in accordance with Indian Accounting Standards (Ind AS)

Capital Structure

  • Paid-up Equity Share Capital: Rs. 999.96 lakhs (99,99,580 equity shares of Rs. 1 each)
  • No reserves excluding revaluation reserves