Board Meeting Details

The Board of Directors meeting was held on Thursday, May 28, 2026 at the Registered Office of the Company. The meeting commenced at 11:00 AM and concluded at 12:00 PM.

Board Approvals

1. Approved the audited financial results along with Balance Sheet, Cash Flow Statement and Auditors Reports of the company for the quarter and year ended March 31, 2026.

2. Approved the appointment of M/s. LANS & CO, Chartered Accountants as the internal auditors of the company for the financial year 2026-27.

3. Any other routine business with the permission of chair.

Financial Results for Year Ended March 31, 2026

Statement of Assets and Liabilities (Amounts in ₹ lakhs)
  • Total Assets: ₹2,961.97 (Previous year: ₹3,297.13)
  • Non-current Assets: ₹2,660.12 (Previous year: ₹2,813.11)
  • Property, plant and equipment: ₹2,633.36
  • Financial Assets: ₹4.06
  • Other non-current assets: ₹22.70
  • Current Assets: ₹301.85 (Previous year: ₹484.02)
  • Inventories: ₹62.08 (Previous year: ₹42.69)
  • Trade receivables: ₹61.14 (Previous year: ₹34.48)
  • Cash and cash equivalents: ₹12.55 (Previous year: ₹6.04)
  • Other financial assets: ₹7.89 (Previous year: ₹3.89)
  • Current Tax Assets (Net): ₹18.03 (Previous year: ₹24.32)
  • Other current assets: ₹140.16 (Previous year: ₹372.60)
  • Total Equity: (₹874.68) [Negative equity] (Previous year: (₹1,090.30))
  • Equity share capital: ₹495.96
  • Other equity: (₹1,370.64)
  • Non-current Liabilities: ₹638.77 (Previous year: ₹1,826.04)
  • Borrowings: ₹297.40 (Previous year: ₹1,260.58)
  • Other financial liabilities: ₹312.08 (Previous year: ₹510.76)
  • Provisions: ₹4.59 (Previous year: ₹0.90)
  • Other non-current liabilities: ₹24.70 (Previous year: ₹53.80)
  • Current Liabilities: ₹3,197.88 (Previous year: ₹2,561.39)
  • Borrowings: ₹1,708.19 (Previous year: ₹1,006.33)
  • Trade payables: ₹718.19 (Previous year: ₹1,027.86 including MSME: ₹1.67)
  • Other financial liabilities: ₹343.47 (Previous year: ₹76.41)
  • Other current liabilities: ₹421.58 (Previous year: ₹448.47)
  • Provisions: ₹6.45 (Previous year: ₹2.32)
Statement of Profit and Loss (Amounts in ₹ lakhs)
  • Total Income: ₹3,405.41 (Previous year not provided for full year)
  • Revenue from operations: ₹2,961.97
  • Other income: ₹443.44
  • Total Expenses: ₹3,189.85
  • Cost of materials consumed: ₹1,821.27
  • Employee Benefits Expense: ₹209.02
  • Finance Costs: ₹147.86
  • Depreciation and amortization expense: ₹170.52
  • Other expenses: ₹615.73
  • Changes in inventories of Stock-in-Trade: (₹2.43)
  • Purchase of Stock-in-Trade (Readymade Garments): Not specified
  • Profit before exceptional items and tax: ₹215.56
  • Exceptional items: ₹225.01 (debit)
  • GST demands of earlier years: ₹10.90 lakhs
  • Unutilized Export Duty Credit of ₹214.11 lakhs written off
  • Profit before tax: (₹9.45)
  • Tax expense: ₹218.42 (Current tax: ₹218.42)
  • Profit for the period: (₹227.87)
  • Other Comprehensive Income: (₹2.81)
  • Total Comprehensive Income for the period: (₹230.68)
  • Earnings per Equity share (Basic and diluted): Not quantifiable due to loss
  • Weighted average number of equity shares: 49,59,577 shares

Cash Flow Statement (Amounts in ₹ lakhs)

  • Net cash flow from operating activities: ₹403.86 (Previous year: (₹72.85))
  • Net cash flow from/(used in) investing activities: (₹17.42) (Previous year: ₹502.82)
  • Net cash flow (used in) financing activities: (₹379.93) (Previous year: (₹439.39))
  • Net increase/(decrease) in cash and cash equivalents: ₹6.51 (Previous year: (₹9.37))
  • Cash and cash equivalents at end of year: ₹12.55 (Previous year: ₹6.04)

Notes to Financial Statements

1. Going Concern: The Company has accumulated losses of ₹1,706.67 lakhs as at March 31, 2026, and current liabilities exceed current assets. However, financials are prepared on a going concern basis considering the market value of its immovable properties.

2. Accounting Standards: Financial results prepared in accordance with Indian Accounting Standards notified under Companies (Indian Accounting Standards) Rules, 2015.

3. Labour Code Impact: Implementation of New Labour Code assessed, impact not material and recognized as part of employee benefits expense.

4. Unprovided Interest: No provision made for interest payable on outstanding unpaid statutory dues of Tax deducted at source up to the date to an extent of ₹31.23 lakhs (including arrears of ₹21.85 lakhs up to March 31, 2025).

5. Exceptional Items: ₹225.01 lakhs comprising GST demands of earlier years (₹10.90 lakhs) and unutilized Export Duty Credit written off (₹214.11 lakhs).

6. Accounting Policies: Consistently followed from annual accounts for year ended March 31, 2026.

7. Review and Approval: Financial results reviewed by Audit Committee and approved by Board of Directors on May 28, 2026.

8. Segment Reporting: Not applicable as company operates as one segment.

9. Comparative Figures: Re-arranged wherever necessary for comparability.

10. Quarterly Figures: Fourth quarter figures are balancing figures of audited full year and published year-to-date figures up to third quarter.

Audit Qualifications

The auditors, K.S. Rao & Co., issued a qualified opinion with three specific matters:

1. Unprovided Interest: No provision made for interest payable on outstanding unpaid statutory dues of Tax deducted at source up to the date to an extent of ₹31.23 lakhs.

2. Long Pending Payables: As of March 31, 2026, the company has certain long pending payables aggregating to ₹648.82 lakhs where the period of limitation has expired under the Limitation Act, 1963. Unable to determine if adjustments are required.

3. Capital Advances: As of March 31, 2026, the company had certain long pending Capital Advances aggregating to ₹21.33 lakhs where the period of limitation has expired under the Limitation Act, 1963. Unable to determine if adjustments are required.

Total Impact of Qualifications

The total quantified and unquantified potential exposure from audit qualifications amounts to ₹700.38 lakhs (₹31.23 + ₹648.82 + ₹21.33).