Shree Narmada Aluminium Q1 FY27 Loss Narrows to ₹0.60 Lakh

Key Quantitative Figures (Quarter Ended June 30, 2026)

Revenue from operations: ₹0.00 lakh
Other income: ₹6.68 lakh
Total income: ₹6.68 lakh
Total expenses: ₹6.08 lakh
Employee Benefit Expenses: ₹0.52 lakh
Finance costs: ₹43.10 lakh
Depreciation and Amortisation Expenses: ₹0.17 lakh
Other Expenses: ₹5.39 lakh
Profit/(Loss) before tax: ₹0.60 lakh (Profit)
Profit/(Loss) for the period: ₹0.60 lakh (Profit)
Total Comprehensive Income: ₹0.60 lakh
Paid-up equity share capital: ₹52.96 lakh (Face value ₹10/- each)
Earnings Per Share (Basic & Diluted): ₹0.12

Comparative Financials

Vs. Q1 FY26 (30 June 2025):

Loss for the period improved to a profit of ₹0.60 lakh from a loss of ₹1.32 lakh.

Vs. FY26 (31 March 2026):

The annual audited result was a loss of ₹68.39 lakh.

Dates of Action

Board Meeting Date: August 11, 2026, concluded at 5:30 PM.
Period of Financial Results: Quarter and year-to-date ended June 30, 2026.
Date of Auditor's Review Report: August 11, 2026.

Parties Involved

Company Management & Board of Directors
Auditors: SVH & Associates, Chartered Accountants (Firm Registration No. 138024W)
Audit Partner: Hiren Vora (Membership No.153268)
Secured Creditor: Not named, but one filed an appeal against the company's scheme.
Purchaser: Samrat Assets Allied Industries Pvt. Ltd., party to an Agreement for Sale.

Legal and Regulatory Background

The company was under the Sick Industrial Companies Act, 1985.
A compromise scheme for rehabilitation was approved by the Hon'ble High Court of Gujarat on May 16, 2008 (Company Petition No. 166 of 2006).
A secured creditor appealed this order. The Division Bench of the Hon. High Court of Gujarat rejected the appeal on March 10, 2025.
The company filed a caveat (Application No.4409) in the Hon'ble Supreme Court on March 24, 2025.
On August 4, 2025, the Hon'ble Supreme Court passed an order, confirming the High Court's scheme. Consequently, the possession of the company's factory premises at Bharuch has been obtained.

Auditor's Qualification

Auditors issued a qualified conclusion in their limited review report. Despite the net worth being fully eroded, management believes the going concern assumption is sustainable. The auditors state that uncertainty exists which may cast significant doubt on the company's ability to continue as a going concern and that the financial statement does not adequately disclose this matter. This is a repetitive qualification.

Other Contingencies and Notes

1. Lease and Sale Agreements:

The company executed two Lease Deeds on July 5, 2009, for its immovable property and machinery in Bharuch. These were terminated due to non-adherence to terms.
An Agreement for Sale dated September 6, 2014, was entered into with Samrat Assets Allied Industries Pvt. Ltd. for the company's property.
The sale could not be concluded due to pending bank proceedings.
The company is considering terminating this agreement, which may give rise to an unascertainable liability.

2. Taxation: No provision for income tax is made due to losses. Deferred tax assets are not recognized. MAT under section 115JB is not applicable as the company is classified as sick.

3. Segment Reporting: The company is primarily engaged in trading aluminium, so there are no separate reportable segments (IND AS-108).

Cash Flow Statement (As at 30.06.2026)

Net Cash from Operating Activities (A): ₹(3.85) lakh
Net Cash from Investing Activities (B): ₹0.00 lakh
Net Cash from Financing Activities (C): Increase in Borrowings of ₹6.84 lakh
Net Increase in Cash: ₹2.99 lakh
Cash and Cash equivalents - Opening Balance: ₹1.24 lakh
Cash and Cash equivalents - Closing Balance: ₹4.23 lakh

Stated Rationale and Impact

Management's rationale is that the going concern assumption is sustainable based on the implementation of the court-approved scheme and the repossession of its factory. The financial impact of the potential termination of the 2014 sale agreement is not quantified.