Financial Results (Standalone)

The company reported minimal financial activity for Q1 FY27:

  • Revenue from operations: ₹0.00 lakh (Nil)
  • Other income: ₹6.68 lakh
  • Total Income: ₹6.68 lakh
  • Total Expenses: ₹6.08 lakh, comprising:
  • Employee Benefit Expenses: ₹0.52 lakh
  • Finance costs: ₹43.10 lakh
  • Depreciation and Amortisation: ₹0.17 lakh
  • Other Expenses: ₹5.39 lakh
  • Profit/(Loss) before tax: ₹0.60 lakh (Profit)
  • Tax expense: ₹0.00 lakh
  • 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 (EPS):
  • Basic & Diluted EPS (before & after extraordinary items): ₹0.12 (Not Annualized)

Comparative Figures:

  • Q1 FY26 (30 June 2025): Net Loss of ₹1.32 lakh
  • FY26 (31 March 2026): Net Loss of ₹68.39 lakh

Auditor's Review and Qualification

The statutory auditors, SVH & Associates, issued a limited review report with a qualified opinion.

The qualification pertains to a significant uncertainty regarding the company's ability to continue as a going concern, despite management's assertion that it is sustainable. The company's net worth is fully eroded. This is noted as a repetitive qualification from previous years.

The auditors concluded that, except for the effects of this going concern matter, nothing has come to their attention causing them to believe the statement contains any material misstatement.

Legal Proceedings and Going Concern Basis

Historical Context: 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).

Recent Developments: A secured creditor appealed this order. The Division Bench of the Gujarat High Court rejected the appeal on March 10, 2025. The company filed a caveat (Application No. 4409) in the Supreme Court on March 24, 2025. Subsequently, on August 4, 2025, the Supreme Court passed an order, upon the appellant's request and respondent's consent, confirming the Gujarat High Court's original order dated May 16, 2008.

Outcome: As a result, the company has obtained possession of its factory premises in Bharuch. Management, based on legal opinions, believes the going concern assumption is sustainable, and thus the accounts are prepared on that basis.

Other Contingent Liabilities

  • The company executed two Lease Deeds on July 5, 2009, for its Bharuch property and machinery, which were later terminated due to non-adherence.
  • An Agreement for Sale for the company's property was entered into with Samrat Assets Allied Industries Pvt. Ltd. on September 6, 2014. This sale could not be concluded due to the pending bank proceedings.
  • The company is now considering terminating this agreement due to differences in interpretation. The potential financial liability from any adverse actions by the purchaser is not ascertainable.

Additional Notes to Financial Results

1. Taxation: No provision for income tax is made due to losses. Deferred tax assets are not recognized due to the absence of virtual certainty of future taxable income. The company is classified as sick, so provisions for MAT u/s 115JB of the Income Tax Act, 1961, are not applicable.

2. Segment Reporting: The company is primarily engaged in trading aluminium, so there are no separate reportable segments per Ind AS 108.

3. Format Compliance: The results are prepared as per SEBI Circulars CIR/CFD/CMD/15/2015 and July 5, 2016.

Cash Flow Statement (Unaudited)

(Rs. in Lakhs)

  • Net Cash from Operating Activities (A): (₹3.85) [Outflow]
  • Net Cash from Investing Activities (B): ₹0.00
  • Net Cash from Financing Activities (C): ₹6.84 [Inflow from increase in borrowings]
  • Net Increase in Cash (A+B+C): ₹2.99
  • Cash and Cash Equivalents - Opening: ₹1.24
  • Cash and Cash Equivalents - Closing: ₹4.23

Approval and Sign-off

The financial results were reviewed by the Audit Committee and approved by the Board of Directors in their meeting held on 11/08/2026.

The report is signed by Kantilal B Patel (Managing Director, DIN:01441306) and Milan R Patel (Director and CFO).