Board Meeting Details

The Board of Directors meeting was held on Wednesday, 27th May 2026 from 3:30 PM to 7:00 PM. The board approved:

  • Audited Standalone & Consolidated Financial Results for Quarter and Year ended March 31, 2026
  • Statement of Assets and Liabilities and Cash Flow Statement for Year ended March 31, 2026
  • Auditors Reports on Standalone and Consolidated Financial Results for year ended March 31, 2026
  • Statement of Impact for audit report with modified opinion as required under Regulation 33(3)(d)
  • Appointment of Ashok P Patel & Co, Chartered Accountants, Ahmedabad as Internal Auditor for Financial Year 2026-27

Financial Performance - Standalone (INR in lakhs)

Year Ended March 31, 2026:

  • Total Income: ₹288.47 lakhs
  • Total Expenditure: ₹574.26 lakhs
  • Loss before tax: ₹(49.49) lakhs
  • Tax expense: ₹8.08 lakhs
  • Net Loss for the year: ₹(277.35) lakhs
  • Other Comprehensive Income: ₹4.87 lakhs
  • Total Comprehensive Income: ₹(285.99) lakhs
  • Paid-up Equity Share Capital: ₹600.99 lakhs (Face value ₹10 each)
  • Earnings per share (Basic & Diluted): ₹(4.61)

Quarter Ended March 31, 2026:

  • Net Loss for quarter: ₹(285.78) lakhs

Financial Position - Standalone (as at March 31, 2026)

  • Total Assets: ₹28,647.82 lakhs
  • Total Liabilities: ₹63,538.96 lakhs
  • Negative Net Worth: ₹(35,492.13) lakhs (Equity ₹600.99 lakhs + Other Equity ₹(35,492.13) lakhs)
  • Accumulated Losses: ₹35,492.13 lakhs

Cash Flow - Standalone (Year Ended March 31, 2026)

  • Net cash used in operating activities: ₹(278.06) lakhs
  • Net cash used in investing activities: ₹260.94 lakhs
  • Net cash used in financing activities: ₹17.62 lakhs
  • Net increase in cash: ₹0.50 lakhs
  • Cash and cash equivalents at year end: ₹61.50 lakhs

Financial Performance - Consolidated (INR in lakhs)

Year Ended March 31, 2026:

  • Total Income: ₹1,296.96 lakhs
  • Total Expenditure: ₹1,662.47 lakhs
  • Loss before tax: ₹(365.51) lakhs
  • Tax expense: ₹(3.20) lakhs
  • Net Loss for the year: ₹(362.31) lakhs
  • Other Comprehensive Income: ₹3.45 lakhs
  • Total Comprehensive Income: ₹(358.86) lakhs
  • Paid-up Equity Share Capital: ₹600.99 lakhs
  • Reserves: ₹(51,649.52) lakhs
  • Earnings per share (Basic & Diluted): ₹(6.03)

Quarter Ended March 31, 2026:

  • Net Loss for quarter: ₹(9.34) lakhs

Financial Position - Consolidated (as at March 31, 2026)

  • Total Assets: ₹1,89,061.66 lakhs
  • Total Liabilities: ₹2,24,224.53 lakhs
  • Negative Net Worth: ₹(35,763.86) lakhs
  • Accumulated Losses: ₹35,763.86 lakhs

Audit Qualifications and Legal Proceedings

NSEL Matter:

  • Company had transactions through NSEL platform during FY 2012-13 via trading member NK Proteins Private Limited
  • NSEL filed civil suit for alleged amount of approximately ₹937 crores plus interest
  • Maharashtra Government issued MPID Act notification attaching company's Land, Building & Plant & Machinery at Kadi, Gujarat
  • Matter pending before Bombay High Court (petition filed June 2017) and Designated Special MPID Court, Mumbai
  • Trade receivables/payables cannot be confirmed due to pending litigation

PMLA Matter:

  • Directorate of Enforcement initiated proceedings under Prevention of Money Laundering Act, 2002
  • Provisional attachment order dated 10/03/2015 attached company assets at Survey Nos.719, 720, 721, 732/1, 732/2, 733, 741, 743, 744, 745, Kadi Thol Road, Kadi
  • Search/seizure carried out on 30/05/2018
  • Company filed appeal before PMLA Appellate Tribunal, Delhi
  • Fresh show cause notice dated 30/08/2018, appeal pending

MPID Act Charge Sheet:

  • Government of Maharashtra filed supplementary charge sheet dated 25th December 2018 under IPC and MPID Act against company and Chairman Nimish Patel
  • Matter adjourned to 23rd June 2026
  • Company has complied with all summons

Income Tax Matters:

  • Income Tax Department survey u/s 133 during FY 2013-14, special audit u/s 142(2A) for AY 2011-12 & 2012-13
  • Demand of ₹86.00 lakhs for AY 2014-15, disputed by company
  • Attachment orders dated 22/04/2015 & 14/08/2015 on properties:
  • 803 & 603 Manas Complex, Satellite, Ahmedabad
  • Factory Building at Survey No 745, Kadi
  • Search & Seizure action u/s 132 on 24/02/1999, block assessment demand of ₹3,312 lakhs
  • Partial relief by ITAT (₹2,884 lakhs), matter pending before Gujarat High Court and Supreme Court

Sales Tax Matters:

  • Sales Tax Department demand of ₹3,314.22 lakhs (net of recovery) for earlier years
  • No provision made as management believes demand won't withstand appellate authorities
  • Appeal preferred and pending

Subsidiaries Information

Company has three wholly-owned subsidiaries:

1. Banpal Oil Chem Private Limited

2. N K Oil Mills Private Limited

3. Tirupati Retail India Private Limited

Subsidiary Tirupati Retail India Private Limited also had NSEL transactions during FY 2013-14 and is party to recovery proceedings.

Going Concern and Material Uncertainty

  • Company has accumulated losses of ₹35,492.13 lakhs (standalone) and negative net worth
  • Management submitted business plan for revival and confident of improved profitability
  • Accounts prepared on going concern basis
  • No impairment provision for investments in Banpal Oil Chem and N K Oil Mills subsidiaries
  • Proper impairment provision made for Tirupati Retail India subsidiary

Internal Auditor Appointment

Appointed Ashok P Patel & Co, Chartered Accountants, Ahmedabad as Internal Auditor for FY 2026-27.

Auditors

Pankaj R. Shah & Associates, Chartered Accountants (Registration No. 107361W) issued qualified audit opinion for both standalone and consolidated financial results.

Impact Statement

Auditors could not quantify financial impact of qualifications due to sub judice matters. Management estimates nil impact but unable to quantify due to pending litigation.

#Tags #N K Industries Limited #SEBIDisclosure #RegulatoryCompliance #FinancialUpdate #Negative