Board Meeting Details

The Board of Directors meeting was held on 26th May 2026, commencing at 04:00 PM and concluding at 06:00 PM. The meeting approved the Statement of Financial Results for the Quarter and Year ended 31st March 2026 along with the Audit Report issued by statutory auditors M/s. DHANA & Associates.

Financial Results Overview

Quarterly Performance (Q4 FY26)

  • Total Income: ₹10.956 crore
  • Revenue from Operations: ₹10.954 crore
  • Interest Income: ₹0.087 crore
  • Sale of Services: ₹6.816 crore
  • Other Revenue from Operations: ₹4.051 crore
  • Total Expenses: ₹10.518 crore
  • Profit Before Tax: ₹0.438 crore
  • Profit After Tax: ₹0.438 crore
  • Basic and Diluted EPS: ₹1.426

Annual Performance (FY26)

  • Total Income: ₹38.621 crore
  • Revenue from Operations: ₹38.616 crore
  • Interest Income: ₹0.384 crore
  • Sale of Services: ₹19.176 crore
  • Other Revenue from Operations: ₹19.056 crore
  • Total Expenses: ₹37.560 crore
  • Profit Before Tax: ₹1.006 crore
  • Profit After Tax: ₹0.834 crore
  • Basic and Diluted EPS: ₹2.713

Comparative Figures (FY25)

  • Total Income: ₹32.940 crore
  • Profit After Tax: ₹0.494 crore
  • Basic and Diluted EPS: ₹1.609

Capital Structure

  • Paid Up Equity Share Capital: ₹3.074 crore (30,74,225 shares of face value ₹10 each)
  • Reserves: ₹14.760 crore (as at 31st March 2026)
  • Net Worth: ₹17.834 crore

Audit Qualification Details

The statutory auditors issued a qualified opinion with two specific qualifications:

Qualification 1: Non-provision of Interest Expense

  • The company has not provided interest on loans taken amounting to ₹7,706 (in thousands) [₹0.771 crore] for the year ended 31st March 2026
  • This constitutes a departure from accrual basis of accounting and NBFC guidelines
  • Impact: Would have decreased profit by ₹0.771 crore and increased loan liability by same amount

Qualification 2: Non-provision for Loss Assets

  • The company has given loans of ₹31,420 (in thousands) [₹3.142 crore] to various parties without charging interest
  • As per NBFC guidelines, these are classified as loss assets but no provision made
  • Impact: Profit overstated by ₹3.142 crore, provision for loss assets understated by ₹3.142 crore, and loan assets overstated by ₹3.142 crore

Impact of Audit Qualifications

The statement on impact of audit qualifications shows material adjustments:

  • Net Profit reduces from ₹0.834 crore to ₹0.063 crore
  • Earnings Per Share reduces from ₹2.713 to ₹0.200
  • Total Assets reduce from ₹36.629 crore to ₹33.487 crore
  • Total Liabilities increase from ₹18.795 crore to ₹19.566 crore
  • Net Worth reduces from ₹17.834 crore to ₹13.921 crore

Management's View on Qualifications

Management disputes the need for provisions:

1. For interest expense of ₹0.771 crore: "There is some dispute going on with the concerned parties and management is of the view that no provision of interest is required"

2. For loan loss provision of ₹3.142 crore: "The Companies to whom loans are provided are not doing good in terms of current operations. Due to this interest has not been provided on the request of the parties"

Other Matters

The financial results include the quarter ended March 31, 2026 as the balancing figure between audited full year figures and published unaudited year-to-date figures up to the third quarter.

Segment Information

The company operates in one segment only (Financial Services), hence segment-wise reporting is not required.

Accounting Standards

The company has adopted Indian Accounting Standards (Ind AS) w.e.f 1st April 2019 and results are prepared in accordance with Ind AS 34 "Interim Financial Reporting".