Financial Results Overview
Income Statement Highlights (Amounts in ₹ Lakhs)
- Revenue from Operations: FY2026: ₹46,666.07 (FY2025: ₹41,691.38); Q4 2026: ₹13,583.29
- Total Income: FY2026: ₹46,792.13 (FY2025: ₹41,984.91)
- Net Loss: FY2026: ₹(1,596.91) (FY2025: Profit ₹14,879.22); Q4 2026: ₹(534.79)
- Earnings Per Share (after exceptional items): Basic & Diluted: FY2026: ₹(4.42) (FY2025: ₹41.17)
- Exceptional Items: FY2026: ₹(1,223.23); Q4 2026: ₹(338.03)
Balance Sheet Position as at March 31, 2026
- Total Assets: ₹28,610.41 lakhs (Previous year: ₹30,612.91 lakhs)
- Total Liabilities: ₹31,316.89 lakhs
- Net Worth: Negative ₹(2,706.48) lakhs (Previous year: Negative ₹(1,130.00) lakhs)
- Current Liabilities exceed Current Assets by: ₹10,912.64 lakhs
- Paid-up Equity Share Capital: ₹3,613.95 lakhs (unchanged)
- Face Value per share: ₹10.00
Cash Flow Statement
- Net Cash Flow from Operating Activities: ₹(857.10) lakhs outflow
- Net Cash Used in Investing Activities: ₹(285.23) lakhs
- Net Cash from Financing Activities: ₹1,127.89 lakhs
- Cash and Cash Equivalents at year-end: ₹87.37 lakhs
Audit Qualifications and Modified Opinion
The statutory auditors, MNRS and Associates (FRN: 0183401), issued a qualified opinion with five specific qualifications:
1. Asset Disposal Compliance Issue: Company disposed of charged assets in favor of Shree Balaji Steel and Metal Private Limited on August 01, 2025, due to inability to repay debt. Approval was obtained in AGM on September 17, 2025, but not in compliance with SEBI LODR Regulations, 2015. Possible consequences unascertainable.
2. Lack of Balance Confirmations: Company did not facilitate direct confirmations for:
- Trade receivables: ₹332.28 lakhs
- Trade payables: ₹185.54 lakhs
- Security deposits: ₹171.95 lakhs
- Advances from customers: ₹98.00 lakhs
- Advances to suppliers: ₹885.68 lakhs (including capital advances ₹167.86 lakhs)
Reconciliation and potential adjustments not carried out.
3. Unsecured Borrowings Verification: Unsecured borrowings from other parties aggregating ₹6,038.40 lakhs outstanding as at March 31, 2026 lack confirmations from lenders, loan agreements, and other audit evidence. Impact on classification and disclosure uncertain.
4. Investment Fair Value: Investments aggregating ₹308.66 lakhs not fair valued at balance sheet date, resulting in non-compliance with Ind AS 109.
5. MSMED Act Compliance: No internal control system to identify suppliers registered under MSMED Act, 2006. Unable to comment on interest payable and disclosure requirements.
Subsequent Events and Emphasis of Matter
Post-Balance Sheet Events
1. Insolvency Application: M/s M N Corporation filed application u/s 7 of IBC, 2016 before NCLT Cuttack on February 05, 2026 for non-repayment of dues amounting to ₹637.11 lakhs (matter sub-judice).
2. Enforcement Directorate Actions: Three Provisional Attachment Orders received from Directorate of Enforcement under PMLA, 2002:
- Order No. 15/2026 dated June 25, 2026
- Order No. 17/2026 dated July 08, 2026
- Order No. 21/2026 dated August 07, 2026
Aggregating ₹128.40 crore in connection with investigation relating to M/s Bhushan Power & Steel Limited.
- Company's immovable properties valued at ₹1.11 crore attached
- 1,57,61,675 equity shares (43.62% of paid-up equity capital) held by certain shareholders attached
- Orders are provisional and subject to confirmation by Adjudicating Authority
3. Lease Termination and Operations Change: Lease agreement terminated due to breach of conditions. Capital work-in-progress disposed of in enforcement of charge. Company discontinued manufacturing operations and commenced trading in finished goods.
Going Concern Uncertainty
Company's current liabilities exceed current assets by ₹10,912.64 lakhs, net worth is negative at ₹(2,101.22) lakhs, pending IBC application, asset disposals, and provisional attachments raise material uncertainty about going concern. However, management believes no threat exists and financial results prepared on going concern basis.
Capital Structure Impact
No change in paid-up equity share capital during the period. Remain at ₹3,613.95 lakhs.
Management Response to Qualifications
Management unable to estimate impact of audit qualifications due to non-availability of sufficient information for all five qualification matters.
Approval Details
- Board of Directors meeting held on September 09, 2026
- Audit Committee reviewed the results