Profit before Exceptional and Extraordinary Items and Tax: ₹(2.65) lakh
Exceptional Items: ₹0.00
Profit before Extraordinary Items and Tax: ₹(2.65) lakh
Extraordinary Items: ₹0.00
Profit before Tax: ₹(2.65) lakh
Tax expense: ₹0.00
Net Profit for the period: ₹(2.65) lakh
Paid-Up Equity Share Capital: ₹817.20 lakh (Face Value ₹10 per share)
Earning Per Share (EPS):
Basic and Diluted EPS before Extra-ordinary items: ₹(0.03)
Basic and Diluted EPS after Extra-Ordinary Items: ₹(0.03)
Key Notes from Company
The company has only one business segment: manufacturing and sale of Gems & Jewellery.
The company stopped manufacturing activities since January 1, 2018.
The company is in the process of restructuring/revival of its business and financial statements are prepared on a going concern basis.
The company incurred a loss of ₹2,64,752.72 during the quarter ended June 30, 2026.
The company has a negative net worth of ₹35,95,76,005.
If provision for unrealized sundry debtors outstanding for more than three years (amounting to ₹41,10,67,159) is made, current liabilities would exceed current assets.
The company has availed working capital (secured) loans: Punjab National Bank (₹10 crore cash credit limit) and Bank of India (₹5 crore cash credit limit).
Accounts were classified as non-performing assets (NPAs) in FY 2015-2016 effective March 31, 2016 due to non-service of interest.
Punjab National Bank (lead bank) has initiated action under section 13(4) of the SARFAESI Act 2002.
The company has not received balance confirmation from bankers since March 31, 2016.
No provision for interest payable has been made in financial statements until June 30, 2026 as it is not quantifiable.
Bank/cash balances are unconfirmed and carried forward since June 30, 2026 (except NKGSB Bank).
Provision for expenses of ₹1,92,25,366 relates to rental charges including outstanding for more than three years; amounts are unconfirmed by parties.
Previous period figures have been re-grouped/re-classified where required.
Auditor's Report (ASHOK BAIRAGRA & ASSOCIATES)
Basis of Adverse Opinion: The company is unable to repay its liabilities (current & non-current) as of June 30, 2026. This indicates material uncertainty about the company's ability to continue as a going concern. The financial statements do not disclose this fact.
Adverse Opinion: Financial statements do not give a true and fair view and do not comply with Companies Act, 2013 requirements.
Emphasis of Matter: Multiple financial issues highlighted:
(a) Manufacturing stopped since January 1, 2018; no detailed revival plans available. Unable to comment on going concern status.
(b) Loss of ₹2,64,753 for quarter; negative net worth of ₹35,95,76,005; if provision for doubtful debtors (₹41,10,67,159) is made, current liabilities exceed current assets.
(c) Cash credit limits from PNB (₹10 crore) and BOI (₹5 crore) classified as NPAs since FY 2016-17. No provision for interest obligation (unquantifiable); loss understated. Non-compliance with Ind AS 23 and Ind AS 109.
(d) Sundry debtors of ₹41,10,67,159 outstanding >3 years; unconfirmed and considered doubtful.
(e) Creditors payable of ₹15,92,70,999 outstanding >3 years; unconfirmed. Material uncertainty about meeting obligations.
(f) Cash/bank balances unconfirmed and frozen per authorities' direction due to bank defaults. Future availability doubtful.
(g) Provision of ₹1,92,25,366 for rent/water charges outstanding >3 years; unconfirmed.
Material Uncertainty Relating to Going Concern: Conditions indicate material uncertainty about company's ability to continue as going concern. Net worth would be fully eroded if provisions for matters (a)-(g) are made.
Disclaimer of Opinion: Due to significance of matters, unable to obtain moderate assurance for review opinion on compliance with accounting standards or absence of material misstatement.
Financial Impact
Net loss for quarter: ₹2.65 lakh
Negative net worth: ₹35.96 crore
Unprovided doubtful debtors: ₹41.11 crore
Unprovided creditor obligations: ₹15.93 crore
Unprovided expense provisions: ₹1.92 crore
Unprovided interest on NPA accounts: Not quantifiable (understated loss)
