Key Financial Results (Figures in ₹ Lakhs)

Financial Year Ended 31st March, 2026:

  • Revenue from Operations: ₹28.29 (vs. ₹366.10 in FY25)
  • Other Income: ₹44.78 (vs. ₹0 in FY25)
  • Total Income: ₹73.07 (vs. ₹366.10 in FY25)
  • Total Expenses: ₹519.25 (vs. ₹518.14 in FY25)
  • Loss Before Tax: ₹(446.18) (vs. ₹(152.04) in FY25)
  • Loss for the Period: ₹(446.18) (vs. ₹(152.04) in FY25)
  • Basic EPS: ₹(4.45) (vs. ₹(1.52) in FY25)
  • Diluted EPS: ₹(2.28) (vs. ₹(0.78) in FY25)

Quarter Ended 31st March, 2026:

  • Revenue from Operations: ₹0.19
  • Total Income: ₹0.19
  • Loss Before Tax: ₹(278.38)
  • Loss for the Period: ₹(276.98)
  • Basic EPS: ₹(2.76)
  • Diluted EPS: ₹(1.42)

Capital Structure

  • Fully Paid-up Shares: 10,023,225 shares of ₹10 each
  • Partially Paid-up Shares: 9,532,775 shares of ₹10 each
  • Paid-up Equity Capital: ₹1,010.27 lakhs
  • Partially Paid-up Equity Share Capital: ₹238.32 lakhs
  • Total Equity: ₹1,264.98 lakhs (vs. ₹1,711.16 lakhs in FY25)

Balance Sheet Position as at 31st March, 2026 (₹ Lakhs)

  • Total Assets: ₹1,387.38 (vs. ₹2,195.04 in FY25)
  • Property, Plant and Equipment: ₹3.58 (vs. ₹109.83 in FY25)
  • Inventories: ₹15.93 (vs. ₹301.70 in FY25)
  • Trade Receivables: ₹1,108.87 (vs. ₹943.89 in FY25)
  • Cash and Cash Equivalents: ₹24.77 (vs. ₹91.61 in FY25)
  • Total Liabilities: ₹122.40 (vs. ₹403.05 in FY25)
  • Borrowings: ₹11.95 (vs. ₹15.22 in FY25)

Cash Flow Statement (₹ Lakhs)

  • Net Cash from Operating Activities: ₹(126.43) (vs. ₹(289.41) in FY25)
  • Net Cash from Investing Activities: ₹151.00 (vs. ₹0 in FY25) - primarily from sale of property
  • Net Cash from Financing Activities: ₹(91.41) (vs. ₹221.95 in FY25)
  • Net Decrease in Cash: ₹(66.84) (vs. ₹(67.46) in FY25)

Significant Operational Issues

Bank Account Freeze: The company's bank accounts have been frozen by the Income Tax Department since 24th November, 2025 due to non-payment of outstanding income tax demands.

Inventory Write-offs: The company wrote off ₹231.47 lakhs of inventory and created an Expected Credit Loss (ECL) provision of ₹75 lakhs during the year.

Trade Receivables Write-back: ₹48.16 lakhs relating to trade receivables were written back during the year.

Trade Payables Write-off: ₹99.09 lakhs relating to trade payables were written off during the year.

Audit Qualifications

Independent auditors Motilal & Associates LLP issued a qualified opinion citing:

1. Lack of valuation reports or supporting documentation for the ₹231.47 lakh inventory write-off and ₹75 lakh ECL provision

2. Absence of adequate reasons, supporting documentation, or evidence of legal remedies for the ₹48.16 lakh trade receivables write-back

3. Insufficient documentation and evidence for the ₹99.09 lakh trade payables write-off

4. Non-receipt of balance confirmations from debtors and creditors regarding the write-offs

The auditors stated they are unable to determine whether these write-offs are appropriate and whether any further adjustments are required.

Management's Response to Audit Qualifications

Management provided a Statement of Impact of Audit Qualifications estimating that if adjustments were made:

  • Total Expenditure would reduce to ₹360.04 lakhs from ₹519.25 lakhs
  • Net Loss would reduce to ₹(286.97) lakhs from ₹(446.18) lakhs
  • EPS would improve to ₹(2.86) from ₹(4.45)
  • Total Assets would increase to ₹1,645.69 lakhs from ₹1,387.38 lakhs
  • Total Liabilities would increase to ₹221.50 lakhs from ₹122.40 lakhs
  • Net Worth would increase to ₹1,424.19 lakhs from ₹1,264.98 lakhs

Management justified the write-offs as prudent assessments based on internal reviews but acknowledged documentation gaps and is strengthening internal controls.