Key Financial Figures (Standalone)

  • Revenue from Operations: ₹809.45 lakhs (Q1 FY27) vs ₹2,101.52 lakhs (Q1 FY26)
  • Construction and Infrastructure development: ₹782.92 lakhs
  • Other operating revenue: ₹26.53 lakhs
  • Other Income: ₹5.39 lakhs
  • Total Income: ₹814.84 lakhs
  • Total Expenses: ₹2,135.93 lakhs
  • Changes in inventories of work-in-progress: ₹1,174.34 lakhs
  • Cost of Construction: ₹310.17 lakhs
  • Employee benefits expense: ₹148.63 lakhs
  • Finance costs: ₹368.50 lakhs
  • Depreciation and amortization expense: ₹0.89 lakhs
  • Other expenses: ₹133.40 lakhs
  • Loss before tax: ₹(1,321.09) lakhs
  • Tax Expenses: ₹(2.42) lakhs (deferred tax credit)
  • Net Loss after tax: ₹(1,318.67) lakhs
  • Total Comprehensive Income: ₹(1,311.44) lakhs
  • Earnings Per Share (Basic & Diluted): ₹(5.94)
  • Net Worth: ₹(8,704.22) lakhs (negative)

Key Financial Figures (Consolidated)

  • Revenue from Operations: ₹809.45 lakhs
  • Other Income: ₹5.39 lakhs
  • Total Income: ₹814.84 lakhs
  • Total Expenses: ₹2,136.54 lakhs
  • Loss before tax: ₹(1,321.70) lakhs
  • Tax Expenses: ₹(2.42) lakhs (deferred tax credit)
  • Net Loss after tax: ₹(1,319.28) lakhs
  • Share of loss of joint ventures: ₹(141.58) lakhs
  • Net Loss after tax, share of associates and joint ventures: ₹(1,460.86) lakhs
  • Total Comprehensive Income: ₹(1,453.63) lakhs
  • Earnings Per Share (Basic & Diluted): ₹(6.58)
  • Net Worth: ₹(16,972.27) lakhs (negative)

Auditor Qualifications and Key Findings

The auditors, R Kothari & Co LLP, issued a qualified conclusion with the following key issues:

Basis for Qualified Conclusion

1. Non-provision of Interest Expense: The company has not provided and is in default of interest expense of ₹641.30 lakhs on borrowings from Srei Equipment Finance Limited for Q1 FY27. Cumulative non-provisioning and default of interest till June 30, 2026, amounts to ₹13,103.88 lakhs.

  • Had this interest been recognized, finance cost would have been ₹1,009.80 lakhs instead of ₹368.50 lakhs
  • Total expenses would have been ₹2,777.22 lakhs instead of ₹2,135.92 lakhs
  • Net loss after tax would have been ₹(1,959.96) lakhs instead of ₹(1,318.66) lakhs
  • Total comprehensive income would have been ₹(1,952.73) lakhs instead of ₹(1,311.43) lakhs

2. Subsidiary Insolvency Uncertainty: Sarga Udaipur Hotels & Resorts Private Limited (subsidiary) was admitted into Corporate Insolvency Resolution Process (CIRP) by NCLT Kolkata Bench vide order dated April 29, 2022.

  • Auditors unable to comment on realisability of investment of ₹195.00 lakh and interest-free loan of ₹1,865.79 lakhs receivable from this subsidiary
  • Also unable to comment on realisability of investment of ₹300.00 lakh and loan of ₹735.36 lakhs (including interest) receivable from Shristi Urban Infrastructure Development Limited (holding company of Sarga Udaipur)
  • Consequential effect on financial results is not ascertainable

Material Uncertainty Relating to Going Concern

The company has incurred losses for the quarter ended June 30, 2026, and for more than three consecutive years. Net worth as on June 30, 2026, has been fully eroded. This indicates a material uncertainty that may cast significant doubt on the company's ability to continue as a going concern.

Emphasis of Matter

1. Sarga Hotel Private Limited: NCLT Kolkata approved a resolution plan on January 4, 2024, upheld by NCLAT on April 4, 2024. The company has filed a Civil Appeal before the Supreme Court, which ordered dispute settlement through mediation on August 19, 2025.

2. Arbitration Award: An arbitration tribunal issued a Final award in favor of Rishima SA Investments LLC, Mauritius, for payment of ₹76,100 lakh with interest of ₹1,390 lakh (till April 30, 2019). Alternatively, if unenforceable, the company shall pay ₹16,020 lakh with interest of ₹2,621 lakh plus costs/damages of ₹1,808 lakh. Enforcement proceedings are pending before Delhi High Court.

3. Balance Confirmations: Balances of Trade Receivables, Trade payables, and Other Receivable/Payable are subject to confirmation/reconciliation, with unascertained consequential impact.

Other Matter (Consolidated Only)

  • Financial results of 5 subsidiaries (total revenue: Nil, comprehensive loss: ₹0.61 lakhs) were not reviewed by their auditors
  • Financial information of joint venture Bengal Shristi Infrastructure Development Limited (Group's share of net loss: ₹141.58 lakhs) was not reviewed by its auditor
  • Financial results of Sarga Udaipur Hotels & Resorts Pvt. Ltd. (under CIRP) are not included as they were not made available

Significant Notes to Financial Results

Legal and Regulatory Matters

1. Srei Equipment Finance Limited: An application filed by Srei Equipment Finance Limited through its Administrator against the company and others before NCLT Kolkata Bench under Section 60(5) and Section 66 of IBC (IA. NO. 744 OF 2022 IN C.P. 294/IB/KB/2021) is pending and being contested.

2. Hiranmayee Energy Limited Arbitration: An arbitral award directing payment of ₹6,56,84,982 plus interest to M/s Scorpio. The company has filed an appeal and a Special Leave Petition before the Supreme Court.

3. Airport Authority of India Dispute: AAI reduced permissible height of Tower 1 and Tower 2 at New Town. The company has challenged this before the Supreme Court.

Debt and Financing Information

  • Non-Convertible Debentures: ₹14,500 lakh outstanding as of June 30, 2026
  • Rated BWR C by Brickwork Ratings India Pvt. Ltd.
  • Secured by first pari pasu charge on land at Guwahati, Assam
  • Previous interest payment: November 30, 2025 (paid on time)
  • Next interest payment due: November 30, 2026
  • Redemption date: November 30, 2026
  • Debenture Redemption Reserve: ₹3,725.72 lakhs

Subsidiary and Joint Venture Information

The consolidated results include the following entities:

1. Shristi Urban Infrastructure Development Limited (Subsidiary, 59.99%)

2. Sarga Udaipur Hotels & Resorts Private Limited (Subsidiary, 39.39%) - Under CIRP

3. Border Transport Infrastructure Development Limited (Subsidiary, 100.00%)

4. East Kolkata Infrastructure Development Private Limited (Subsidiary, 100.00%)

5. Vipeni Hotels & Resorts Limited (Subsidiary, 100.00%)

6. Fortune Engineering Services Private Limited (Subsidiary, 100.00%)

7. Vindhyachal Attivo Food Park Private Limited (Subsidiary, 89.31%)

8. Bengal Shristi Infrastructure Development Limited (Joint Venture, 33.24%)