Financial Results Overview
For the half year ended September 30, 2026:
- Total Revenue: ₹17.04 lakhs (₹1.56 lakhs from operations + ₹15.48 lakhs other income)
- Total Expenditure: ₹22.91 lakhs
- Net Loss: ₹(5.87) lakhs
- Earnings Per Share (Basic and Diluted): ₹(0.08)
Comparative figures:
- Half year ended September 30, 2025: Net Loss of ₹(17.51) lakhs
- Year ended March 31, 2026: Net Loss of ₹(17.20) lakhs
Auditor's Limited Review Report
SDA & Associates Chartered Accountants (Firm Registration No. 120759W) issued a Limited Review Report with a qualified opinion dated October 28, 2026, highlighting three key matters:
Emphasis of Matter 1: Reliance on Securities/Derivative Trading
A substantial portion of the company's income and financial results has arisen from securities and derivative transactions, which are not part of its principal business activities. The financial results from such transactions are significant compared to those from principal business operations, indicating substantial dependence on financial market activities. These transactions expose the company to market price fluctuations and associated financial risks that may materially affect its financial performance.
Emphasis of Matter 2: Incomplete Inventory Records
The company has not maintained complete and proper quantitative records of inventory during the period under review. Management represented that physical verification was conducted as at September 30, 2026, and closing inventory of ₹8.65 lakhs was valued in accordance with Accounting Standard (AS) 2. The inventory balances were determined based on physical verification and valuation carried out by management in the absence of complete and regularly updated inventory records.
Emphasis of Matter 3: Unreconciled Payable to IIFL
The balance payable to IIFL as reflected in the company's books as at September 30, 2026, does not agree with the corresponding balance appearing in the statement of account obtained from IIFL. The company has not reconciled the differences, and the auditor is unable to determine whether any adjustments are required to the carrying amount of the liability, related finance costs, and consequential impact on profit/loss.
Management's Response to Audit Qualifications
For all three qualifications, management stated that due to the nature of the matters and related uncertainties, the financial impact cannot be reasonably ascertained or quantified presently. Accordingly, no adjustments have been made in the financial statements.
Auditor's Going Concern Comment
The auditor noted that the continuance of the company as a commercially viable entity is substantially dependent upon revival of operational business activities and generation of sustainable operational revenues, indicating existence of material uncertainty which may cast significant doubt on the company's ability to continue as a going concern.
Financial Position as at September 30, 2026
Assets and Liabilities:
- Total Assets: ₹665.28 lakhs
- Total Liabilities: ₹665.28 lakhs
- Net Worth: ₹659.72 lakhs
- Share Capital: ₹733.20 lakhs
- Reserves and Surplus: ₹(73.48) lakhs
Asset Breakdown:
- Fixed Assets: ₹29.33 lakhs (₹29.30 lakhs tangible + ₹0.03 lakhs intangible)
- Non-current Investments: ₹324.98 lakhs
- Deferred Tax Asset: ₹0.82 lakhs
- Current Investments: ₹45.12 lakhs
- Inventories: ₹8.65 lakhs
- Cash and Cash Equivalents: ₹19.08 lakhs
- Short-term Loans and Advances: ₹144.50 lakhs
- Other Current Assets: ₹92.80 lakhs
Segment Information
The company operates in the textile business in two cities: Mumbai and Noida.
- Segment Revenue: ₹14 lakhs (total)
- Segment Assets: ₹667.99 lakhs (Mumbai: ₹642.06 lakhs, Noida: ₹25.93 lakhs)
- Segment Profit/Loss: ₹(3.87) lakhs (Mumbai: ₹(5.04) lakhs, Noida details not fully clear)
Cash Flow Statement
For half year ended September 30, 2026:
- Net Cash Flow from Operating Activities: ₹6.00 lakhs
- Net Cash Flow from Investing Activities: ₹(183.39) lakhs
- Net Cash Flow from Financing Activities: Not clearly quantified
- Net Decrease in Cash & Cash Equivalents: ₹(177.39) lakhs
- Opening Cash Balance: ₹196.47 lakhs
- Closing Cash Balance: ₹19.08 lakhs
Additional Notes
- The company has entered into exchange-traded equity/index Futures and Options contracts incidental to its principal business activities
- As at September 30, 2026, certain derivative contracts remain outstanding and are due for settlement in subsequent periods
- There are no investor complaints pending as on September 30, 2026
- The financial results have been prepared in accordance with Accounting Standards notified under Section 133 of the Companies Act, 2013