The original board meeting convened on May 30, 2026, was adjourned as the statutory auditors informed the company they could not issue their audit report until substantial clearance of their outstanding professional fees. The company subsequently cleared a substantial portion of these outstanding dues, enabling the auditors to complete the audit and issue their report containing a modified opinion.

The company submitted the following documents pursuant to Regulation 33:

  • Audited Financial Results for the quarter and financial year ended March 31, 2026
  • Audit Report issued by the statutory auditors containing a modified opinion
  • Statement on Impact of Audit Qualifications in the prescribed format

Financial Results Highlights

For the Year Ended March 31, 2026:

  • Total Income: ₹133.57 Lakhs (compared to ₹298.73 Lakhs in FY25)
  • Total Expenditure: ₹411.26 Lakhs (compared to ₹168.02 Lakhs in FY25)
  • Net Loss: ₹277.69 Lakhs (compared to Net Profit of ₹130.71 Lakhs in FY25)
  • Earnings Per Share: (₹8.60) (compared to ₹4.05 in FY25)
  • Total Assets: ₹590.97 Lakhs (compared to ₹854.46 Lakhs in FY25)
  • Total Liabilities: ₹178.63 Lakhs (compared to ₹164.43 Lakhs in FY25)
  • Net Worth: ₹412.34 Lakhs (compared to ₹690.03 Lakhs in FY25)
  • Paid-up equity share capital: ₹322.81 Lakhs (face value of ₹10 per share)

For the Quarter Ended March 31, 2026:

  • Total Income: ₹16.93 Lakhs
  • Total Expenditure: ₹295.75 Lakhs
  • Net Loss: ₹278.82 Lakhs
  • Earnings Per Share: (₹8.64)

Audit Qualifications and Modified Opinion

The statutory auditors (d m k h & co., FRN: 0116886W) issued a modified opinion with the following emphasis of matter points:

1. Internal Audit Non-compliance: The company failed to appoint internal auditors as required under Section 138 of the Companies Act read with Rule 13 of the Companies (Accounts) Rules, 2014.

2. Audit Trail Non-compliance: The company did not maintain an audit trail (edit log) in its accounting software for FY26 as required under Rule 3(1) of the Companies (Accounts) Rules, 2014.

3. Statutory Dues Non-compliance: Non-payment of Professional Tax and TDS, including non-deduction of TDS on specified payments and non-deposit of TDS deducted during financial years. The company has not recognized consequential interest, penalties, and other statutory liabilities.

4. Loan Write-off: Write-off of loans and advances aggregating to ₹234.01 Lakhs during the year based on management's assessment of irrecoverability.

5. Listing Fee Non-payment: Non-payment of annual listing fees to stock exchanges for FY 2023-24 and FY 2024-25, which may lead to regulatory action including suspension or compulsory delisting after three consecutive years of non-payment.

6. Outstanding Income Tax Demands:

  • Assessment Year 2014-15: ₹58.29 Lakhs
  • Assessment Year 2017-18: ₹101.46 Lakhs

Total outstanding: ₹159.75 Lakhs

Management has filed necessary replies/representations and applied for stay of demand, believing the demands are not sustainable. No provision has been recognized.

7. Open Offer: An open offer relating to transfer/acquisition of approximately 40% of paid-up equity share capital/voting rights is under process, subject to completion of regulatory formalities.

Management's View on Audit Qualifications

The management states that the impact of the audit qualifications is presently not quantifiable as the matters primarily relate to statutory compliances, disclosures, management estimates, and pending regulatory matters. Based on legal advice and management assessment, no material adjustment to the financial statements is considered necessary except to the extent already disclosed in the Notes to Accounts.

The financial impact, if any, depends on future events, regulatory proceedings, confirmations, and legal outcomes, which cannot be estimated with reasonable certainty.

Additional Information

The financial results were reviewed by the Audit Committee and approved by the Board of Directors. The company operates in a single segment. Balances in various accounts are subject to confirmation/reconciliation, though management does not expect material adjustments. Trade payables outstanding as of March 31, 2026, are not registered under MSME, and management has not received any confirmation from them.