Financial Results Overview
For Quarter Ended March 31, 2026 (Audited):
- Revenue from operations: ₹331.27 lakh
- Total income: ₹333.86 lakh
- Total expenses: ₹5,609.56 lakh
- Loss from operations before tax: ₹(227.10) lakh
- Net loss for the quarter: ₹(58.43) lakh
- Basic EPS: ₹(1.56)
For Financial Year Ended March 31, 2026 (Audited):
- Revenue from operations: ₹1,211.16 lakh (compared to ₹2,820.40 lakh in FY25)
- Total income: ₹1,215.84 lakh
- Total expenses: ₹18,004.13 lakh
- Loss from operations before tax: ₹(584.57) lakh
- Net loss for the year: ₹(415.91) lakh (compared to ₹(209.40) lakh in FY25)
- Basic EPS: ₹(11.12)
- Paid-up equity share capital: ₹374.13 lakh (face value ₹10 per share)
Auditor's Report and Qualifications
The statutory auditors, B A Shah S R Mehta & Co. (FRN: 128796W), issued a qualified audit report with the following key audit matters:
1. Insurance Claim Receivable: Company lodged insurance claim of ₹368.58 lakh for fire incident on December 06, 2023, after deducting salvage value of ₹18 lakh. Net claim receivable is ₹350.57 lakh, but claim has not been sanctioned by insurance company, impacting true and correct presentation of financials.
2. Investment in Mutual Funds: During the year, company utilized ₹40 lakh for investments in mutual funds held in the name of Managing Director Umang A Gosalia, not in company's name, contravening Section 187(1) of Companies Act, 2013. Company has taken loan from Aditya Birla Finance Ltd of ₹840 lakh for which this investment was made.
3. Non-Provision of Depreciation: Company did not provide depreciation on clean room plant (value ₹202.97 lakh) and effluent treatment plant (value ₹7.40 lakh) considering non-usage of these assets.
4. Non-Provision of Employee Benefits: Company accounts for post-employment and other long-term employee benefits (gratuity, bonus, leave encashment) on cash basis instead of accrual basis required by Ind AS 19 and Companies Act, 2013, preventing quantification of unrecorded liabilities.
5. Acceptance of Deposits: Company accepted deposits of ₹61.17 lakh from Limited Liability Partnership, contravening RBI directives and provisions of Sections 73 to 76 of Companies Act, 2013 and Companies (Acceptance of Deposit) Rules, 2015.
Additional Notes to Financial Results
1. The company operates in a single pharmaceutical segment.
2. Figures for previous periods have been re-grouped wherever necessary.
3. Depreciation for the period excludes depreciation on clean room plant and effluent treatment plant.
4. Insurance claim lodged with insurance company where surveyor provided insurance provision of ₹3.5 crore.
Balance Sheet Position (as of March 31, 2026)
- Total assets: ₹2,805.33 lakh
- Total equity: ₹(614.78) lakh (negative)
- Non-current liabilities: ₹1,151.82 lakh
- Current liabilities: ₹226.83 lakh
Cash Flow Statement (FY26)
- Net cash from operating activities: ₹(235.54) lakh
- Net cash used in investing activities: ₹(89.99) lakh
- Net cash from financing activities: ₹381.47 lakh
- Net increase in cash: ₹55.94 lakh
- Cash equivalents at year-end: ₹64.97 lakh