Key Financial Figures (Standalone)

Profit & Loss (Year Ended March 31, 2026):

  • Total Income: ₹7,606.10 lakhs
  • Total Expenditure: ₹8,374.65 lakhs
  • Net Loss: ₹(768.55) lakhs
  • Earnings Per Share: ₹(1.78)

Balance Sheet (As at March 31, 2026):

  • Total Assets: ₹9,540.93 lakhs
  • Total Liabilities: ₹7,593.26 lakhs
  • Net Worth: ₹1,947.67 lakhs
  • Equity Share Capital: ₹2,165.00 lakhs
  • Other Equity: ₹(217.33) lakhs

Key Balance Sheet Items:

  • Trade Receivables: ₹5,417.79 lakhs (vs. ₹3,769.74 lakhs in FY25)
  • Inventories: ₹906.10 lakhs (vs. ₹805.60 lakhs in FY25)
  • Borrowings (Current): ₹1,892.33 lakhs (vs. ₹1,231.76 lakhs in FY25)
  • Borrowings (Non-Current): ₹682.64 lakhs (vs. ₹262.35 lakhs in FY25)
  • Trade Payables: ₹4,085.34 lakhs (₹467.78 lakhs to micro/small enterprises + ₹3,617.56 lakhs to others)

Key Financial Figures (Consolidated)

Profit & Loss (Year Ended March 31, 2026):

  • Total Income: ₹7,644.41 lakhs
  • Total Expenditure: ₹8,532.61 lakhs
  • Net Loss: ₹(888.20) lakhs
  • Earnings Per Share: ₹(2.04)
  • Loss attributable to owners: ₹(884.80) lakhs

Balance Sheet (As at March 31, 2026):

  • Total Assets: ₹9,325.09 lakhs
  • Total Liabilities: ₹8,007.07 lakhs
  • Net Worth: ₹1,318.02 lakhs
  • Equity Share Capital: ₹2,165.00 lakhs
  • Other Equity: ₹(835.99) lakhs
  • Minority Interest: ₹(10.98) lakhs

Audit Qualifications

Statutory Auditors R D V & Associates issued a qualified opinion on both standalone and consolidated results with three key qualifications:

Qualification 1: Inventory Obsolescence

  • Company identified slow/non-moving inventories of ₹145.69 lakhs
  • Management did not carry out assessment of inventory ageing, obsolescence, or net realizable value
  • No provision for obsolescence considered
  • Auditors unable to comment on appropriateness of carrying value or impact on loss

Qualification 2: Advances to Suppliers

  • Advances aggregating ₹244.62 lakhs (standalone)/₹258.13 lakhs (consolidated) include old outstanding amounts (some >3 years)
  • No significant movement or recovery during the year
  • Management did not assess recoverability or make provisions
  • Auditors unable to comment on required adjustments to carrying value

Qualification 3: Trade Receivables

  • Trade receivables of ₹5,417.79 lakhs (standalone)/₹5,273.38 lakhs (consolidated) include old outstanding balances (>3 years)
  • Management did not compute Expected Credit Loss (ECL) under Ind AS 109
  • Auditors unable to comment on ECL provision, carrying value, or impact on loss

Management's Response to Qualifications

For all three qualifications, management states:

  • Impact is "No effect on Financial Results"
  • No quantification provided by auditors

Specific Management Arguments:

1. Inventory: Slow-moving inventory comprises tailor-made products for specific customers stored in specialized packing. Management believes net realizable value exceeds carrying amount and expects to realize marginal value in due course.

2. Advances: Advances outstanding >3 years are minimal (~₹15 lakhs) and pertain to regular vendors. Remaining advances are routine business advances expected to be adjusted with upcoming purchases in 2-3 months.

3. Receivables: Receivables primarily from state utilities include AMC receivables and retention money that typically remain outstanding >1 year. Management confident about recoverability despite some balances under litigation.

Emphasis of Matter

Auditors highlighted two additional matters without modifying opinion:

1. Sequential Settlement Arrangements: Company has arrangements with certain vendors where liabilities are settled upon realization of payments against executed contracts. Trade receivables from these arrangements are considered in stock statements to lending banks for working capital facilities.

2. Investment in Sharika Spintech: Investment of ₹566.25 lakhs in subsidiary despite accumulated losses of ₹453.07 lakhs. Management believes carrying value appropriate due to Preliminary Agreement with Brazil's SPIN Engenharia for smart grid automation solutions and identified projects under negotiation.

Operational Context

  • Primary business: Engineering, Procurement and Construction (EPC) relating to Electrical Cables, Capacitors, Wires, Conductors, and Turnkey Projects
  • Single reportable segment as evaluated by CODM
  • Loss attributed by management to unprecedented copper price rise impacting margins and forcing refusal of some orders

Subsidiaries Included in Consolidation

  • Sharika Spintech Private Limited
  • Sharika Smartec Private Limited
  • Contronics Switchgear India Private Limited

Approval and Review Dates

  • Financial results reviewed by Audit Committee and approved by Board of Directors on May 20, 2026
  • Auditors' report dated May 21, 2026
  • Submitted to BSE on May 26, 2026