Financial Results Overview

Quarter Ended September 30, 2026:

  • Total Income: ₹446.76 lakhs
  • Total Expenses: ₹106.93 lakhs
  • Profit before tax: ₹339.83 lakhs
  • Tax expense: ₹80.75 lakhs
  • Net Profit: ₹259.09 lakhs
  • Basic & Diluted EPS: ₹0.07

Half Year Ended September 30, 2026:

  • Total Income: ₹938.09 lakhs
  • Total Expenses: ₹568.43 lakhs
  • Profit before tax: ₹369.66 lakhs
  • Tax expense: ₹63.76 lakhs
  • Net Profit: ₹305.90 lakhs
  • Basic & Diluted EPS: ₹0.09

Balance Sheet Position (as at September 30, 2026)

Assets: ₹20,549.11 lakhs

  • Financial Assets: ₹20,404.40 lakhs (including Loans: ₹20,035.97 lakhs, Other Investments: ₹61.68 lakhs)
  • Non-Financial Assets: ₹144.71 lakhs

Liabilities & Equity: ₹20,549.11 lakhs

  • Financial Liabilities: ₹14,620.48 lakhs (including Borrowings: ₹13,661.39 lakhs)
  • Non-Financial Liabilities: ₹14.49 lakhs
  • Equity: ₹5,914.14 lakhs (Share Capital: ₹4,999.96 lakhs, Other Equity: ₹914.18 lakhs)

Audit Qualifications

The statutory auditors, M/s. JCR & Co. LLP, issued a qualified opinion with four specific qualifications:

1. Interest Expense Understatement: The company has not provided interest expense in few loan accounts due to missing loan documents. The amount cannot be quantified.

2. Investment Documentation Issues: The company holds unquoted investments of ₹61.68 lakhs and quoted shares (stock-in-trade) of ₹0.89 lakh without ownership documents. The management is following up with concerned parties.

3. Undisclosed BSE Penalty: The company failed to disclose a penalty of ₹90,000 levied by BSE, which is categorized as a deemed material event under Point 20 of Schedule III, Part A, Para A of SEBI LODR Regulations.

4. Unaccrued CFO Salary: The salary of the CFO has not been accrued/paid in the books of accounts, with reasons not available to auditors.

Emphasis Matters

1. The company raised ₹48 crores through a rights issue during the quarter, which included share premium of ₹8 crores.

2. The company was hit by a ransomware cyber-attack on July 3, 2026, compromising all financial data including backups. Management believes there is no financial loss from this event.

Other Matters

1. RBI Approval for Management Change: The company requires RBI permission for acquisition of control which happened in 2025-26. A physical application was filed in August 2026, and RBI instructed to file online, which management is processing for Q3 filing.

2. Share Issue Expenses: Share issue expenses of ₹1.23 crores have been written off against share premium of ₹8 crore.

3. Statutory Compliance Issues:

  • Profession Tax of ₹11,600 deducted from employees but not remitted to authorities, and no professional tax registration obtained
  • TDS of ₹58,16,996 not deducted and paid on interest expense provision of ₹5,81,69,958

Rights Issue Details

  • Date of Raising Funds: July 30, 2026
  • Amount Raised: ₹48,00,00,000
  • Mode: Rights Issue of 40,00,00,000 equity shares of face value ₹1 each at issue price of ₹1.20 per share (including premium of ₹0.20 per share)
  • Objects: Augmenting the capital base of the Company including expansion of NBFC financing business
  • Funds Utilised: ₹46.50 crores as per original allocation
  • No deviation/variation in utilization of funds reported

Management Response to Qualifications

The management provided explanations for each qualification, stating they are in the process of obtaining necessary documents from lenders and concerned parties, and will make appropriate accounting adjustments and disclosures once documents are received and verified.