Muzali Arts Limited held a Board of Directors meeting on Saturday, 14th November 2026, at its Registered Office in Nagpur from 4 PM to 5 PM. The meeting was conducted in pursuance of Regulation 30 read with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Results Approval

The Board approved:

1. Unaudited Financial Results of the Company for the second quarter and half year ended 30th September 2026

2. Standalone Limited Review Report issued by the Statutory Auditors for the Unaudited Financial Results

The Statutory Auditors, Bilimoria Mehta & Co (FRN: 101490W), issued a Review Report with an unmodified opinion on the Financial Results.

Quarterly Financial Performance (Standalone)

(All amounts in Indian Rupees Lakhs)

Quarter Ended September 30, 2026:

  • Total Income: ₹9.97 (entirely from Other Income; Revenue from operations: ₹0)
  • Total Expenses: ₹9.17
  • Employee benefit expense: ₹2.38
  • Other expenses: ₹6.78
  • Profit before tax: ₹0.81
  • Tax expense: ₹0
  • Profit for the period: ₹0.81
  • Earnings per share (basic and diluted): ₹0.00

Quarter Ended June 30, 2026:

  • Total Income: ₹9.86 (Other Income only)
  • Total Expenses: ₹7.62
  • Profit before tax: ₹2.24
  • Tax expense: ₹2.56 (Current tax)
  • Loss for the period: ₹(0.32)
  • EPS: ₹(0.00)

Quarter Ended September 30, 2025:

  • Total Income: ₹10.69 (Other Income only)
  • Total Expenses: ₹7.18
  • Profit before tax: ₹3.51
  • Tax expense: ₹0.21 (Current tax)
  • Profit for the period: ₹3.30
  • EPS: ₹0.01

Half-Yearly Financial Performance (Standalone)

Half Year Ended September 30, 2026:

  • Total Income: ₹19.83 (Other Income only)
  • Total Expenses: ₹16.79
  • Profit before tax: ₹3.05
  • Tax expense: ₹2.56 (Current tax)
  • Profit for the period: ₹0.48
  • EPS: ₹0.00

Half Year Ended September 30, 2025:

  • Total Income: ₹21.05 (Other Income only)
  • Total Expenses: ₹10.18
  • Profit before tax: ₹10.88
  • Tax expense: ₹2.83 (Current tax)
  • Profit for the period: ₹8.05
  • EPS: ₹0.01

Balance Sheet Position (Standalone)

As at September 30, 2026 vs March 31, 2026

Assets:

  • Total Assets: ₹999.33 lakhs (vs ₹1,027.32 lakhs)
  • Current Assets: ₹999.33 lakhs
  • Cash and Cash equivalents: ₹60.33 lakhs (vs ₹37.10 lakhs)
  • Loans: ₹678.96 lakhs (vs ₹680.06 lakhs)
  • Other Current Assets: ₹260.04 lakhs (vs ₹256.96 lakhs)
  • Trade receivables: ₹0 (vs ₹53.20 lakhs)
  • Non-Current Assets: ₹0

Equity and Liabilities:

  • Equity Share Capital: ₹591.65 lakhs (unchanged)
  • Other Equity: ₹363.09 lakhs (vs ₹362.61 lakhs)
  • Non-Current Liabilities: ₹10.00 lakhs (Borrowings, unchanged)
  • Current Liabilities: ₹34.59 lakhs
  • Trade Payables: ₹14.89 lakhs (Micro/small enterprises: ₹0.68 lakhs; Others: ₹14.21 lakhs)
  • Other Financial Liabilities: ₹2.08 lakhs
  • Other Current Liabilities: ₹4.96 lakhs
  • Provision: ₹12.67 lakhs

Cash Flow Statement (Standalone)

Half Year Ended September 30, 2026

  • Cash from Operating Activities: ₹2.31 lakhs
  • Cash from Investing Activities: ₹20.93 lakhs (primarily from loan recoveries)
  • Cash from Financing Activities: ₹0.00
  • Net increase in Cash: ₹23.24 lakhs
  • Opening Cash balance: ₹37.10 lakhs
  • Closing Cash balance: ₹60.33 lakhs

Critical Accounting Matter - Investment in Jalan & Jalan Collection Inc.

The company disclosed significant information regarding its investment in Jalan & Jalan Collection Inc.:

  • Company purchased 80% stake in Jalan & Jalan Collection Inc. during FY 2020-21
  • Dispute arose between company and minority shareholder during FY 2022-23
  • Company filed a case against minority shareholder alleging misfeasance, misrepresentation & misappropriation at District Mediation Center, Nagpur on 19-05-2022
  • Company has been unable to obtain sufficient data from subsidiary for consolidation since June 2021 quarter
  • Management reassessed control over subsidiary as per Ind AS 110 and determined company does not possess significant control despite 80% shareholding
  • Management concluded Jalan & Jalan Collection Inc. does not qualify as a subsidiary
  • Management also determined the investment does not qualify as an associate under Ind AS 28 as company has no role in financial or operating decisions
  • Previous classification as subsidiary was deemed erroneous
  • Investment now accounted for as per Ind AS 109 - Financial Instrument at fair value through profit and loss
  • Based on valuation report dated 27th April 2024, fair value assessed at ₹-76,736.87
  • Investment recorded at zero rupees in books
  • Company has had no active operations since October 2022

Additional Notes

  • Financial results prepared in accordance with Indian Accounting Standards (Ind AS)
  • Company operates in one business segment (no segment reporting required)
  • Results reviewed by Audit Committee and approved by Board of Directors
  • Quarterly results are balancing figures between half-year results and previous quarter results
  • The company's statutory auditors, Bilimoria Mehta & Co, issued an unmodified review conclusion but drew attention to Note 5 regarding the derecognized investment and lack of active operations