Board Meeting Details

The Board of Directors meeting was held on Saturday, 14 November 2026 at the registered office of the Company from 8:30 P.M. to 9:00 P.M.

Key Decisions Approved

1. Approval of Unaudited Financial Results

The Board considered and approved the unaudited financial results of the Company for the half year ended 30 September 2026, together with the Limited Review Report issued by the Statutory Auditors, H. Rajen & Co.

2. Constitution/Reconstitution of Board Committees

The Board approved the constitution/reconstitution of:

  • Audit Committee pursuant to Section 177 of Companies Act, 2013:
  • Mr. Kamlesh Kumar - Chairperson
  • Mr. Mahendra Soni - Member
  • Mr. Deepak Sangat - Member
  • Nomination and Remuneration Committee pursuant to Section 178 of Companies Act, 2013:
  • Mr. Kamlesh Kumar - Chairperson
  • Mr. Mahendra Soni - Member
  • Mr. Deepak Sangat - Member (subject to confirmation of Non-Executive status)

The Board noted that constitution of a Stakeholders Relationship Committee under Section 178(5) is not required as the Company does not have more than 1,000 security holders.

Financial Results Summary (Half Year Ended 30 September 2026)

Income Statement Highlights (₹ in lakh)

  • Total Income: Not quantified in disclosure
  • Total Expenses: ₹11.59 lakh
  • Profit/(Loss) before tax: ₹(11.89) lakh
  • Tax Expense: Not applicable
  • Profit/(Loss) for the period: ₹(11.89) lakh
  • Earnings Per Equity Share (Basic & Diluted): ₹0.05

Comparative Performance

  • Previous Half Year (30 September 2025): Loss of ₹(19.88) lakh
  • Previous Full Year (31 March 2026): Loss of ₹(82.06) lakh
  • Full Year (31 March 2025): Loss of ₹(129.72) lakh

Balance Sheet Position (as at 30 September 2026, ₹ in lakh)

Assets

  • Non-Current Assets: ₹63.62 lakh
  • Property, Plant and Equipment: ₹43.83 lakh
  • Capital work-in-progress: ₹8.36 lakh
  • Investments: ₹0.11 lakh
  • Deferred tax assets: ₹31.32 lakh
  • Current Assets: ₹7,967.72 lakh
  • Inventories: ₹1,069.08 lakh
  • Trade Receivables: ₹1,400.96 lakh
  • Cash and Cash Equivalents: ₹3.95 lakh
  • Loans and Advances: ₹5,458.55 lakh
  • Other current assets: ₹39.17 lakh
  • Total Assets: ₹8,031.34 lakh

Liabilities and Equity

  • Equity: ₹3,612.36 lakh
  • Equity Share capital: ₹1,886.47 lakh
  • Other Equity: ₹1,729.89 lakh
  • Non-Current Liabilities: ₹300.48 lakh
  • Borrowings: ₹206.40 lakh
  • Current Liabilities: ₹4,212.88 lakh
  • Borrowings: ₹653.58 lakh
  • Trade payables: ₹2,391.48 lakh
  • Other current liabilities: ₹1,060.17 lakh
  • Provisions: ₹127.15 lakh

Cash Flow Statement (Half Year Ended 30 September 2026, ₹ in lakh)

  • Net Cash from Operating Activities: ₹(100.80) lakh
  • Net Cash from Investing Activities: ₹48.75 lakh
  • Net Cash from Financing Activities: ₹55.41 lakh
  • Net Increase in Cash & Cash Equivalents: ₹3.36 lakh
  • Cash & Cash Equivalents at End: ₹3.95 lakh

Auditor's Limited Review Report Qualifications

H. Rajen & Co., Chartered Accountants (FRN: 108351W) issued a qualified review report with the following concerns:

Basis for Qualified Conclusion

1. Loans and Advances: Company granted net additional loans of ₹0.48 lakh, with total loans and advances of ₹5,458.55 lakh to various parties, contravening Sections 185 and 186 of Companies Act, 2013. No shareholders' approval obtained. Recoverability uncertain.

2. Short-term Borrowings: Repaid net short-term borrowings of ₹49.24 lakh, with total short-term borrowings of ₹653.58 lakh from parties other than directors/relatives, contravening Sections 73 to 76 of Companies Act, 2013. No counter-party ledger confirmations provided.

3. Inventory: Stock of ₹1,065.09 lakh as on 30.09.2026. Uncertainty about existence and fair valuation due to absence of physical verification report.

Emphasis of Matter

1. Tax Accounting: Absence of proper accounting entries raises concerns about accuracy and completeness of financial records. Outstanding tax liabilities not ascertainable.

2. Statutory Dues: Non-payment of TDS and TCS of ₹10.88 lakh remains outstanding as of 30.09.2026.

3. Accounting Software: Company not maintaining books of account in software with edit log feature as required under Rule 3(1) of Companies (Accounts) Rules, 2014.

4. Trade Receivables: Uncertainty regarding recoverability of trade receivables of ₹1,400.96 lakh due to no direct confirmation from debtors.

5. Loans and Advances: No interest income booked against loans to others. No provision for doubtful debts.

6. Inventory Valuation: Management valued inventory only at cost, non-compliant with Ind AS 2 requiring lower of cost or NRV. No physical inventory counting attended.

7. Balance Confirmations: Closing balances relied upon as per books where confirmations from debtors and creditors not available.