Key Financial Figures

Profit & Loss Statement (in lakhs):

  • Year Ended March 31, 2026: Net Loss of ₹614.49
  • Quarter Ended March 31, 2026: Net Loss of ₹140.92
  • Total Comprehensive Loss for Year: ₹614.49
  • Total Comprehensive Loss for Quarter: ₹140.92
  • Accumulated Losses (as of March 31, 2026): ₹7,249.26

Balance Sheet Position (as of March 31, 2026, in lakhs):

  • Total Assets: ₹5,529.34
  • Current Liabilities Exceed Total Assets by: ₹3,512.05
  • Negative Net Worth: ₹5,115.48
  • Equity Share Capital: ₹966.47
  • Other Equity: (₹6,081.96)

Cash Flow Statement (in lakhs):

  • Net Cash Used in Operations (FY26): (₹578.40)
  • Cash & Cash Equivalents at Year End: ₹227.26

Auditor's Qualified Opinion Details

The auditors, Jagdish Chand & Co., issued a qualified opinion with the following material issues:

1. Unprovided Interest on Secured Inter Corporate Deposits:

  • Quarterly interest not provided: ₹134.61 lakhs (Q4 FY26)
  • Annual interest not provided: ₹545.91 lakhs (FY26)
  • Cumulative interest not provided from June 8, 2024 to March 31, 2026: ₹990.72 lakhs
  • Impact: Loss would have increased by corresponding amounts if provided

2. Unprovided Interest on Vehicle Loans:

  • Quarterly interest not provided: ₹0.59 lakhs (Q4 FY26)
  • Annual interest not provided: ₹2.71 lakhs (FY26)
  • Cumulative interest not provided from June 8, 2024 to March 31, 2026: ₹5.96 lakhs

3. Non-Verification of Property, Plant & Equipment: No physical verification carried out during the year (effect unascertainable)

4. Non-Verification of Inventories: ₹116.33 lakhs inventory not physically verified at year end

5. MSME Compliance Issues:

  • Trade payables not bifurcated into MSME and non-MSME categories
  • Non-compliance with Section 22 of MSMED Act, 2006
  • Potential interest on overdue MSME payments unascertainable
  • Failure to file MSME-1 half-yearly return for FY 2025-26 as required under Section 405 of Companies Act, 2013

Insolvency Resolution Process Status

  • Corporate Insolvency Resolution Process (CIRP) initiated by NCLT, Allahabad Bench order dated June 7, 2024
  • Insolvency Resolution Professional (IRP) appointed with board powers suspended
  • Committee of Creditors (COC) approved resolution plan on April 16, 2025
  • NCLT, Allahabad Bench set aside the resolution plan on January 7, 2026 with specific directions
  • Subsequent to year end, COC has approved a new resolution plan submitted by a Resolution Applicant
  • New resolution plan submitted to NCLT for approval
  • Company's ability to continue as going concern depends on new resolution plan approval

Additional Information

  • Preference Shares: 6% Preference Shares of ₹500 lakhs not converted as per AGM approval dated September 8, 2009. During FY25, 14% non-cumulative non-convertible Preference Shares of ₹500 lakhs reclassified from other equity to other financial liabilities.
  • Segment Reporting: Single reportable segment - "Manufacturing of Paper and Paper related products"
  • Dividend: No preference dividend declared due to losses
  • Financial Results Availability: Available on Bombay Stock Exchange website (www.bseindia.com)