Company and Document Details

Board Meeting and Approval

The Board of Directors meeting was held on 23rd June, 2026 at the company's registered office in Mumbai from 3:30 PM to 7:10 PM. The Board approved the Standalone Audited Financial Results for the quarter and financial year ended 31st March, 2026, along with the Auditors Report and Statement of Impact of Audit Qualifications as required under Regulation 33(3)(d) of SEBI (LODR) Regulations, 2015.

Financial Performance Highlights (Figures in ₹ Lakhs)

Annual Results (FY 2025-26 vs FY 2024-25)

  • Revenue from Operations: ₹28.29 (vs ₹366.10 previous year) - 92.3% decline
  • Other Income: ₹44.78 (vs ₹0 previous year)
  • Total Income: ₹73.07 (vs ₹366.10 previous year) - 80% decline
  • Total Expenses: ₹519.25 (vs ₹518.14 previous year)
  • Loss Before Tax: ₹(446.18) (vs ₹(152.04) previous year)
  • Net Loss: ₹(446.18) (vs ₹(152.04) previous year)
  • Basic EPS: ₹(4.45) (vs ₹(1.52) previous year)
  • Diluted EPS: ₹(2.28) (vs ₹(0.78) previous year)

Quarterly Results (Q4 FY26)

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

Capital Structure

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

Segment Performance (FY 2025-26)

The company operates in two segments:

1. Manufacturing of Electrical Tools & Service: Revenue ₹28.09 lakh, Segment loss ₹(155.51) lakh

2. Trading: Revenue ₹0.20 lakh, Segment loss ₹(153.27) lakh

  • Total Segment Loss: ₹(308.78) lakh
  • Unallocable Expenses: ₹174.86 lakh
  • Other Unallocable Income: ₹44.78 lakh

Balance Sheet Position (as of 31st March, 2026)

Assets

  • Total Assets: ₹1,387.38 lakh (vs ₹2,195.04 lakh previous year)
  • Non-Current Assets: ₹193.58 lakh (including Property, Plant & Equipment: ₹3.58 lakh)
  • Current Assets: ₹1,193.80 lakh (including Inventories: ₹15.93 lakh, Trade Receivables: ₹1,108.87 lakh, Cash: ₹24.77 lakh)

Liabilities

  • Total Liabilities: ₹122.40 lakh (vs ₹483.88 lakh previous year)
  • Current Liabilities: ₹122.41 lakh (including Borrowings: ₹11.95 lakh, Trade Payables: ₹42.93 lakh)

Cash Flow Statement (FY 2025-26)

  • Net Cash from Operating Activities: ₹(126.43) lakh
  • Net Cash from Investing Activities: ₹151.00 lakh (mainly from sale of property)
  • Net Cash from Financing Activities: ₹(91.41) lakh
  • Net Decrease in Cash: ₹(66.84) lakh
  • Cash at End of Year: ₹24.77 lakh (vs ₹91.61 lakh previous year)

Critical Operational Issue

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. This significantly impacts the company's operational capabilities.

Audit Qualifications and Management Response

Qualified Opinion Basis

Auditors issued a qualified opinion citing three main issues:

1. Inventory Write-off: ₹231.47 lakh inventory written off and ₹75 lakh ECL provision created without valuation reports or supporting documentation

2. Trade Receivables Write-back: ₹48.16 lakh written back without adequate documentation or balance confirmations

3. Trade Payables Write-off: ₹99.09 lakh written off without adequate documentation or balance confirmations

Management's Estimated Impact

Management provided estimated financial impact if audit qualifications were adjusted:

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

Management's Defense

Management claims the write-offs were prudent assessments based on:

  • Inventory being slow-moving, obsolete, damaged, or expired
  • Trade receivables being irrecoverable due to prolonged non-recovery, party closures, and disputes
  • Trade payables where liabilities had ceased to exist or were no longer payable

Auditor's Rebuttal

Auditors maintain their qualified position, stating:

  • No adequate supporting documentation provided for any write-offs
  • No valuation reports for inventory write-off
  • No evidence of legal actions for receivable recovery
  • No balance confirmations from debtors/creditors
  • Write-offs based on "oral assumptions" without documentary backing