Board Meeting Details

The meeting was held at the Registered Office of the Company situated at C-47 G/F, Shivalik Colony, Malviya Nagar, Near Shemrock School, Malviya Nagar (South Delhi), South Delhi, New Delhi, Delhi, India, 110017. The meeting commenced at 3:00 P.M. and concluded at 3:40 P.M.

Business Transacted

1. Approved the Audited Standalone Financial Results along with Auditor's Report for the quarter and year ended March 31, 2026 in terms of Regulation 33 of SEBI (Listing Obligation and Disclosure Requirement) 2015.

2. Provided a declaration pursuant to Regulation 33(3)(d) that the Statutory Auditors issued an Audit Report with a modified opinion on the Audited Financial Results for the quarter and year ended March 31, 2026.

3. Approved the Audited Standalone Financial Statements for the year ended March 31, 2026 along with Auditor's Report thereon in terms of Section 134 of the Companies Act, 2013.

4. Approved the Board's Report along with Report on Corporate Governance, Management Discussion and Analysis Report and Secretarial Audit Report for the year ended 31st March, 2026.

5. Approved the day, date, time and venue of the 31st AGM:

  • Date: 30th September, 2026
  • Day: Wednesday
  • Time: 4:00 P.M.
  • Venue: Through Video Conferencing Other Audio Visual mode

6. Approved the Notice of 31st Annual General Meeting with agenda items including:

  • Adoption of Audited Standalone and Consolidated Financial Statements for FY26
  • Appointment of Mr. Anand Singh (DIN: 11329642) who retires by rotation
  • Appointment of M/s. Bihari Shah & Co., Chartered Accountants, as statutory auditors for 5 consecutive years

7. Books of the Company will remain closed from 24th September, 2026 till 30th September, 2026 (both days inclusive) for the AGM.

8. Cut-off date for members eligible for remote e-voting and voting is 23rd September, 2026.

9. Ms. Vishakha Agrawal of M/s. Vishakha Agrawal & Associates appointed as Scrutinizer for e-voting and voting process.

Financial Results Highlights

Year Ended March 31, 2026 (Audited):

  • Total Income: ₹3,061.70 lakhs
  • Total Expenses: ₹3,133.79 lakhs
  • Loss before tax: ₹(72.10) lakhs
  • Net Profit/(Loss) after tax: ₹(71.94) lakhs
  • Total Comprehensive Income: ₹(123.32) lakhs
  • Paid-up Equity Share Capital: ₹5,993.93 lakhs (Face value ₹10.00 per share)
  • Other Equity Capital (Reserve & Surplus): ₹(175.42) lakhs
  • Basic EPS: ₹(0.21)
  • Diluted EPS: ₹(0.21)

Quarter Ended March 31, 2026 (Audited):

  • Total Income: ₹291.39 lakhs
  • Total Expenses: ₹503.70 lakhs
  • Loss before tax: ₹(212.31) lakhs
  • Net Profit/(Loss) after tax: ₹(184.24) lakhs
  • Total Comprehensive Income: ₹(253.81) lakhs
  • Basic EPS: ₹(0.42)
  • Diluted EPS: ₹(0.42)

Audit Qualifications

The Statutory Auditors, M/s. Bihari Shah & Co., issued a Qualified Opinion with the following basis:

1. Inability to Verify Inventory: Management did not provide confirmation, representation, or physical verification records regarding inventory as of March 31, 2026. Auditors unable to perform alternative procedures to obtain evidence regarding existence, condition, and valuation of inventory.

2. Non-Provision of Interest Expense: Company availed unsecured loans but did not provide for interest, departing from Ind AS 109. Had interest been recognized, financial liabilities would have been higher and reported profit lower.

3. Non-Recognition of Interest Income: Company granted loans and advances but failed to recognize interest income, departing from Ind AS 109. Had interest been accrued, financial assets and reported profit would have been higher.

Emphasis of Matter

Auditors drew attention to:

1. Statutory Non-Compliance (Section 186): Company granted loans and advances to individuals in violation of provisions under Section 186 of Companies Act, 2013.

2. Utilization of Rights Issue Proceeds: Company made advance payments to suppliers, investments in shares and securities, and payments for general business purposes from rights issue proceeds.

3. Pending Confirmations: Outstanding balances related to trade receivables, trade payables, loans, and advances subject to confirmations.

Segment Reporting (FY26)

  • Steel Segment Revenue: ₹815.78 lakhs
  • Construction Machinery Revenue: ₹92.11 lakhs
  • Commodities Revenue: ₹2,153.81 lakhs
  • Total Segment Revenue: ₹3,061.70 lakhs

Balance Sheet Position (as at March 31, 2026)

  • Total Assets: ₹7,210.27 lakhs
  • Current Assets: ₹6,967.65 lakhs (including Inventories ₹242.62 lakhs, Trade Receivables ₹1,188.10 lakhs)
  • Equity Share Capital: ₹5,993.93 lakhs
  • Other Equity: ₹(175.42) lakhs
  • Total Liabilities: ₹1,391.77 lakhs
  • Current Liabilities: ₹1,372.77 lakhs

Cash Flow Statement (FY26)

  • Net cash used in operating activities: ₹(317.63) lakhs
  • Net cash from investing activities: ₹69.36 lakhs
  • Cash and cash equivalents at year end: ₹15.47 lakhs

Impact of Audit Qualifications

Management stated that the exact impact is currently unquantified but is evaluating verification results and conducting reconciliations. For inventory, new management is evaluating results of newly conducted physical verification. For interest expense, management is obtaining formal balance and interest confirmations. For interest income, a complete review and reconciliation is scheduled for the upcoming financial year.

Internal Financial Controls

Auditors reported that, subject to material weaknesses related to lack of management confirmation on physical inventory controls and internal control failures leading to non-compliance with Section 186, the Company has adequate internal financial controls system over financial reporting operating effectively as at March 31, 2026.