Financial Performance (Standalone)
Quarter Ended June 30, 2026 (Unaudited):
- Revenue from Operations: ₹2,219.83 lakhs
- Other Income: ₹15.04 lakhs
- Total Income: ₹2,234.87 lakhs
- Total Expenses: ₹2,202.99 lakhs
- Profit before Tax: ₹31.88 lakhs
- Tax Expense: ₹9.02 lakhs (Deferred Tax)
- Profit after Tax: ₹22.86 lakhs
- Other Comprehensive Income: ₹0.48 lakhs
- Total Comprehensive Income: ₹23.34 lakhs
- Basic EPS: ₹0.05
- Diluted EPS: ₹0.05
Comparative Figures:
- Q1 FY26 (June 30, 2025): Loss of ₹100.97 lakhs after tax
- Q4 FY26 (March 31, 2026): Loss of ₹252.73 lakhs after tax
- FY26 (March 31, 2026): Loss of ₹770.51 lakhs after tax
Financial Performance (Consolidated)
Quarter Ended June 30, 2026 (Unaudited):
- Revenue from Operations: ₹2,220.07 lakhs
- Other Income: ₹11.56 lakhs
- Total Income: ₹2,231.63 lakhs
- Total Expenses: ₹2,190.66 lakhs
- Profit before Tax: ₹40.97 lakhs
- Tax Expense: ₹11.11 lakhs (Deferred Tax)
- Profit after Tax: ₹29.86 lakhs
- Total Comprehensive Income: ₹30.34 lakhs
- Profit attributable to Owners: ₹34.61 lakhs
- Basic EPS: ₹0.08
- Diluted EPS: ₹0.08
Auditor's Qualified Opinion
R D V & Associates issued a qualified opinion on both standalone and consolidated financial results citing:
1. Inventory Concerns (Note 8):
- Company identified slow/non-moving inventories of ₹149.25 lakhs
- No provision for obsolescence considered
- Management has not carried out assessment of inventory ageing, obsolete inventories, and net realizable value
- Inventories continue to be carried at cost
- Same qualification was issued for quarter and year ended March 31, 2026
2. Advances Recovery Concerns (Note 9):
- Advances to suppliers and others aggregating ₹210.66 lakhs outstanding as of June 30, 2026
- Includes old outstanding advances (some outstanding for more than three years) with no significant movement or recovery
- Management has not carried out assessment of recoverability
- No provision made against these advances
- Same qualification was issued for quarter and year ended March 31, 2026
3. Trade Receivables Concerns (Note 9):
- Trade receivables aggregating ₹4,862.30 lakhs (standalone) and ₹5,273.38 lakhs (consolidated) as of June 30, 2026
- Includes old outstanding balances (some outstanding for more than three years) and balances relating to parties with no transactions for considerable period
- Management has not computed Expected Credit Losses (ECL) under Ind AS 109
- Same qualification was issued for quarter and year ended March 31, 2026
Emphasis of Matter
Note 7 - Sequential Settlement Arrangements:
- Company has arrangements with certain vendors for sequential settlement of liabilities
- Vendor liabilities are settled upon realization of payments against executed contracts
- Trade receivables pertaining to such arrangements considered in stock statements submitted to lending banks for working capital facilities
Note 6 - Investment in Subsidiary:
- Investment in Sharika Spintech Private Limited (including loans): ₹579.69 lakhs as of June 30, 2026
- Subsidiary has accumulated losses of ₹514.68 lakhs as of June 30, 2026
- Management believes carrying value is appropriate based on Preliminary Agreement with Brazil's SPIN Engenharia for collaboration on smart grid automation solutions and identified projects under negotiation
Capital Structure
- Paid-up equity share capital: ₹2,165.00 lakhs (face value ₹5 each)
- Other Equity (excluding revaluation reserves) as of March 31, 2026: (₹217.33) lakhs
Business Segment
- Company is primarily engaged in Engineering, Procurement and Construction (EPC) business relating to Electrical and other Cables, Capacitors, Wires and Conductors, and Turnkey Projects
- Single reportable segment as defined under Ind AS 108
Consolidation Entities
Consolidated financial results include:
- Holding Company: Sharika Enterprises Limited
- Subsidiaries: Sharika Spintech Private Limited, Sharika Smartec Private Limited, Contronics Switchgear India Private Limited