Starcom Information Technology Limited's Board of Directors meeting was held on 14th November 2026 from 12:30 PM to 2:30 PM at the corporate office in Bengaluru. The Board approved the unaudited financial results for the second quarter ended September 30, 2026, and took on record the Limited Review Report from statutory auditors.

Financial Results (Quarter Ended September 30, 2026)

  • Total Income: ₹54.26 lakhs (₹49.57 lakhs from operations + ₹4.69 lakhs other income)
  • Net Loss Before Tax: ₹158.41 lakhs
  • Net Loss After Tax: ₹158.41 lakhs
  • Total Comprehensive Loss: ₹158.41 lakhs
  • Earnings Per Share (Basic & Diluted): (₹3.17)
  • Equity Share Capital: ₹500.06 lakhs (Face Value ₹10 per share)
  • Other Equity: Negative ₹3,851.31 lakhs (excluding Revaluation Reserve)

Half Year Performance (Ended September 30, 2026)

  • Total Income: ₹78.61 lakhs
  • Net Loss Before Tax: ₹346.82 lakhs
  • Net Loss After Tax: ₹346.82 lakhs
  • Total Comprehensive Loss: ₹346.82 lakhs
  • Earnings Per Share: (₹6.94)

Segment-wise Performance (Q2 FY27)

  • Test, Measurement & Embedded Solutions for Educational Sector: Revenue ₹41.78 lakhs, Segment Loss ₹10.76 lakhs
  • Data Quality, Statistical & Analytics Software: Revenue ₹7.79 lakhs, Segment Profit ₹0.47 lakhs

Critical Financial Position Indicators

  • Net Worth: Fully eroded at negative ₹3,351.25 lakhs
  • Current Liabilities Exceed Current Assets: ₹5,286.84 lakhs vs ₹138.84 lakhs
  • Cash and Cash Equivalents: ₹5.49 lakhs as of September 30, 2026
  • Total Assets: ₹2,641.91 lakhs
  • Total Liabilities: ₹5,993.16 lakhs

Significant Contingencies and Qualifications

1. Overdue Statutory Dues: ₹16.49 crore as of September 30, 2026

  • Sales Tax/Service Tax/GST: ₹238.10 lakhs (including interest ₹176.37 lakhs)
  • Provident Fund/ESIC/Professional Tax: ₹206.57 lakhs (including interest ₹140.01 lakhs)
  • Tax Deducted at Source: ₹1,204.01 lakhs (including interest ₹730.65 lakhs)
  • Company has provided interest up to September 30, 2026, but consequential impacts not ascertained

2. Rent Obligations: ₹660.81 lakhs (net of TDS) outstanding up to March 31, 2019 for office premises jointly owned by a promoter

  • Management discussing waiver with lessors
  • Rent expense not recognized from April 1, 2019 to July 31, 2024: ₹607.15 lakhs
  • Financial impact not ascertained

3. Intangible Assets Under Development: ₹2,431.02 lakhs for Business Intelligence and Data Quality Solutions software

  • Project not completed for a long time
  • Management believes future economic benefits will flow to company
  • Auditor unable to verify impairment considerations

4. Compensation Receipt: ₹1,000 lakhs received from City Builder for vacating leased premises

  • Shown as Other Current Liability due to unclear nature of transaction
  • Lease was between premises owner and promoter group

Auditor's Modified Opinion

The statutory auditors, C A S & CO, issued a limited review report with modified opinions regarding:

  • Unascertained impacts of overdue statutory dues
  • Non-recognition of rent expenses and potential liability implications
  • Valuation and impairment considerations for intangible assets under development
  • Going concern uncertainty due to cash losses and negative net worth
  • Classification of ₹1,000 lakhs compensation receipt

Going Concern Basis

Despite cash losses and negative net worth, management maintains going concern basis based on:

  • Pursuing prospective investors for working capital requirements
  • Belief that operations will become profitable in future