Board Meeting Details

  • Meeting Date: Friday, 12th June, 2026
  • Meeting Time: 12:15 AM to 1:00 PM
  • Approved Items: Audited Financial Statements for financial year ended 31st March, 2024 including Balance Sheet, Statement of Profit and Loss, Cash Flow Statement and Auditor's Report
  • AGM Date: To be fixed and intimated to stock exchanges in due course

Audit Opinion - Qualified

Auditor issued qualified opinion with the following key reservations:

Qualification Basis:

1. Gratuity Provision: No provision made for gratuity as per Accounting Standard 15 (Note 15(B)(25))

2. Resolution Plan Impact: NCLT Mumbai Bench-IV approved Resolution Plan on 18th August 2025 providing for:

  • Cancellation/restructuring of existing equity share capital
  • Allotment of shares to financial creditors
  • Issuance of fresh equity shares to Resolution Applicant
  • Implementation pending completion of procedural formalities and regulatory approvals
  • Accounting impact on share capital, securities premium, EPS not determined

3. Accounting Framework Issue: Financial statements prepared under Accounting Standards instead of required Indian Accounting Standards (Ind AS) despite cessation of NBFC activities

4. Record Access Limitations: New management lacks complete access to historical books of account, agreements, records, and supporting documents

5. Verification Limitations: Unable to verify completeness, existence, valuation, classification and recoverability of certain assets and liabilities

Financial Impact:

Auditor unable to quantify financial effects of the qualified matters on the financial statements.

Financial Highlights (Amount in ₹ Lakhs)

Balance Sheet Position as at 31st March, 2024:

  • Share Capital: 699.51 (7,000,000 shares of ₹10 each)
  • Reserves & Surplus: (6,210.90) [Negative]
  • Long-term Borrowings: 3,002.50 (Unsecured Loans from Banks/NBFCs including EMD by resolution applicants)
  • Trade Payables: 15.49
  • Provisions: 30.85
  • Total Liabilities: 3,833.06
  • Long-term Loans & Advances: 3,818.31
  • Trade Receivables: 0.13
  • Cash & Cash Equivalents: 0.13
  • Short-term Loans & Advances: 14.62
  • Total Assets: 3,833.06

Profit & Loss for FY 2023-24:

  • Income from Operations/Interest Income: 16.55
  • Employee Benefit Expenses: 3.03
  • Finance Cost: 61.40
  • Other Expenses: 0.74
  • Net Loss: (48.62)
  • Basic & Diluted EPS: (0.07)

Comparative Figures (FY 2022-23):

  • Net Loss: (4,900.70)
  • Basic & Diluted EPS: (7.01)

Cash Flow Statement:

  • Net Cash Used in Operating Activities: (514.46)
  • Net Cash from Investing Activities: 242.50
  • Net Cash from Financing Activities: 64.45
  • Cash Balance Opening: 514.59
  • Cash Balance Closing: 0.13

Significant Accounting Policies & Notes

Corporate Insolvency Resolution Process:

  • CIRP initiated on 7th February 2024 by NCLT Mumbai Bench
  • Mr. Nimai Shah appointed as Resolution Professional
  • Board powers suspended, exercised by Resolution Professional
  • Resolution Plan approved by NCLT on 18th August 2025
  • Company ceased NBFC activities and surrendered registration

Going Concern Assumption:

Financial statements prepared on going concern basis based on expectation of successful resolution process completion, though outcome remains uncertain.

Key Financial Notes:

1. Share Capital: 7,000,000 equity shares of ₹10 each, fully paid

2. Reserves: Security Premium Reserve: 100.02; Statutory Reserve: 16.53; P&L Deficit: (6,327.45)

3. Loans & Advances: ₹3,818.31 lakhs (Unsecured, to related parties, repayable on demand)

4. Trade Receivables: ₹0.13 lakhs

5. Cash & Bank: ₹0.13 lakhs (Cash: ₹0.07; Bank: ₹0.06)

6. TDS Receivable: ₹11.39 lakhs

7. Outstanding Statutory Dues: TDS of ₹15.53 lakhs and Income Tax of ₹2.43 lakhs

Auditor's Additional Remarks (Annexure A):

  • No property, plant & equipment or inventory
  • Granted multiple loans totaling ₹43.72 crore during year without specified repayment terms
  • Irregular in depositing undisputed statutory dues
  • Defaulted in loan repayments leading to CIRP
  • Incurred cash losses of ₹48.62 lakhs (Previous year: ₹4900.70 lakhs)
  • No internal audit system
  • Material uncertainty exists regarding company's ability to meet liabilities
  • No fraud reported during the year

Internal Financial Controls:

Auditor unable to opine on adequacy of internal financial controls due to material weaknesses identified in the main audit report.