Novateor Research Laboratories FY26 Annual Report

Total Income from Operations (net): ₹382.75 lakhs (FY26) vs ₹277.73 lakhs (FY25)
Profit After Tax: ₹10.12 lakhs profit (FY26) vs ₹8.18 lakhs loss (FY25)
Authorized Capital: ₹700.00 lakhs (70,00,000 equity shares of ₹10 each)
Paid-up Capital: ₹605.22 lakhs (60,52,170 equity shares of ₹10 each) increased from ₹483.42 lakhs due to conversion of 12,18,000 equity warrants
Reserves and Surplus: ₹545.12 lakhs (includes Securities Premium of ₹491.38 lakhs)
Long-Term Borrowings: ₹32.39 lakhs
Short-Term Borrowings: ₹69.80 lakhs
Inventory: ₹105.12 lakhs
Trade Receivables: ₹282.12 lakhs
Cash and Bank Balances: ₹46.83 lakhs
Proposed Related Party Transaction Limits: ₹50,00,000 each with Mr. Navdeep Mehta and Mr. Jitin Doshi for FY26-27

AGM Date: Tuesday, September 29, 2026 at 3:00 PM IST
Record Date for AGM: Friday, September 25, 2026
Financial Year End: March 31, 2026
Auditor's Report Date: May 30, 2026
Board Meeting Dates: 3rd September 2025, 30th May 2025, 30th July 2025, 3rd November 2025, 14th November 2025, 7th February 2026

Statutory Auditors: M/S H K Shah and Co (Firm Registration No. 109583W)
Secretarial Auditor: Mr. Mehul Raval, Practicing Company Secretaries
Internal Auditor: M/s. N. C. Vasa & Co. (FRN: 125841W)
Key Managerial Personnel: Mr. Navdeep Subhashbhai Mehta (MD & CFO), Ms. Pooja Rathi (Company Secretary from Nov 3, 2025), Mr. Nitin Shah (Company Secretary until July 31, 2025)
Board of Directors: Mr. Navdeep Subhashbhai Mehta, Mr. Jitin Jaysukh Doshi, Mr. Bhavya Himanshu Doshi, Mr. Imran Zuber Khan, Ms. Hiral Nischal Bane, Mr. Anil Tilakraj Arora (from Sept 3, 2025)

The company turned profitable with ₹10.12 lakhs PAT in FY26 compared to loss of ₹8.18 lakhs in FY25
Conversion of 12,18,000 equity warrants increased paid-up capital by ₹121.80 lakhs
No dividend recommended for FY25-26
No amounts transferred to Investor Education and Protection Fund
The company continues its business of developing novel personal care products under brand name, with teeth whitening products being first of a kind in India with FDCA approval
Proposed shifting of registered office to Plot No.: PE-11, Sanand-II, GIDC Industrial Estate for operational convenience and cost optimization

Increase in paid-up capital from ₹483.42 lakhs to ₹605.22 lakhs due to warrant conversion
Promoter shareholding: Mr. Navdeep Mehta holds 15,00,858 shares (24.80%), Tejal Mehta holds 507,378 shares (8.38%)

Qualified Opinion with following issues:

AS 2 'Valuation of Inventories' not followed - technical valuation not quantifiable
AS 9 'Revenue Recognition' not followed - interest incomes under legal dispute and not realized
AS 15 'Employee Benefits' not followed - provision for gratuity not recorded
AS 17 'Segment Reporting' not followed
GST turnover of ₹9.83 lakhs under reconciliation
Internal financial controls qualified due to inadequate inventory valuation processes

Key Audit Matters:

1. Valuation of Inventories - significant judgment involved in determining net realizable value

2. Recognition and Recoverability of Accrued Interest Income - ₹48.39 lakhs interest income recognized but unrealized, subject to disputes

Shareholders to approve transactions up to ₹50 lakhs each with Mr. Navdeep Mehta (DIN: 03441623) and Mr. Jitin Jaysukh Doshi (DIN: 07325340) for FY26-27
Transactions to be at arm's length basis in ordinary course of business
Actual transactions during FY26: Remuneration to KMP ₹1.34 lakhs, Rent ₹2.35 lakhs, Share warrant issues ₹26.04 lakhs to KMP and ₹25.20 lakhs to relatives

Board comprises 6 directors (1 executive, 1 non-executive, 4 independent)
6 board meetings held during FY26 with average attendance of 4-6 directors
Audit Committee met 4 times, Stakeholder's Relationship Committee met 3 times, Nomination and Remuneration Committee met 3 times
Company has whistle blower policy and vigil mechanism
No fraud reported by auditors under Section 143(12)
No material orders passed by regulators/courts affecting going concern status

Company has no subsidiaries, associates, or joint ventures
No deposits accepted from public
No revision of financial statements in past 3 years
No credit rating obtained for any securities
No sexual harassment cases reported during the year
Company maintains Structured Digital Database for UPSI as required by PIT Regulations
Internal financial controls considered adequate except for inventory valuation issues
Company is listed on BSE SME platform (ISIN: INE08JY01013)

Company plans to expand business in cosmetics and various health care pharma products
New manufacturing facility to be located at Sanand with semi-automation to reduce manual labor and raw material wastage
Management Discussion highlights opportunities in oral care market growth and threats from competition and pricing pressure

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