Board Meeting Details

The Board of Directors meeting was held on May 28, 2026, commencing at 10:00 PM and concluding at 10:30 PM. The Board approved the audited financial results upon recommendation from the Audit Committee.

Financial Results Overview

For the year ended March 31, 2026:

  • Net Loss after Tax: ₹7.09 lakhs
  • Total Income: ₹187.74 lakhs
  • Total Expenditure: ₹201.83 lakhs
  • Total Assets: ₹196.99 lakhs
  • Total Liabilities: ₹248.30 lakhs
  • Net Worth: Negative ₹51.31 lakhs
  • Earnings Per Share (Basic and Diluted): Negative ₹0.04
  • Paid-up Equity Share Capital: ₹1,710.00 lakhs (Face Value ₹10 each)

Cash Flow Statement

  • Net Cash Flows from Operating Activities: Negative ₹32.45 lakhs
  • Net Cash Flows from Investing Activities: ₹32.06 lakhs
  • Net Cash Flows from Financing Activities: Negative ₹0.09 lakhs
  • Net Decrease in Cash & Cash Equivalents: ₹0.47 lakhs
  • Cash & Cash Equivalents at year-end: ₹0.63 lakhs

Audit Opinion - Qualified

Sharp Aarth & Co. LLP issued a qualified opinion on the financial results. The basis for qualification includes:

Pending Resolution Plan Implementation

The company underwent Corporate Insolvency Resolution Process (CIRP) under IBC 2016. The resolution plan of Solar Copyer Limited was approved by NCLT Mumbai Bench vide order dated March 14, 2024. However, subsequent to COC approval on January 1, 2021, SEBI introduced an amendment vide notification dated June 18, 2021, mandating minimum 5% public shareholding for companies undergoing CIRP.

Since this requirement came after plan approval, the company doesn't meet the threshold. BSE has withheld permission to trade the company's securities. The company has filed an Interlocutory Application (IBC) before NCLT Mumbai Bench seeking modification of the approved resolution plan to ensure compliance with 5% public shareholding requirement. The application is pending with next hearing scheduled on July 21, 2026.

Consequently, the extinguishment of existing share capital and issue of new share capital has not been completed. The approved resolution plan proposed:

  • Issue of 35,000 equity shares to Solar Copyer Limited
  • Issue of 1,500 equity shares to Rutwik Sales Private Limited
  • Settlement of remaining financial creditors' amount of ₹155.00 lakhs through equity shares

Accounting Treatment of Financial Debt

Based on the approved resolution plan, the company has accounted financial debt at cost, overriding Indian Accounting Standards which would require recognition at fair value. Interest cost on loan is not recognized as the financial debt would be converted to equity shares as per the resolution plan terms.

Arbitration Proceedings

The company has initiated commercial arbitration proceedings against Ambernath Municipal Corporation (AMC) for recovery of substantial outstanding contractual dues. The matter is pending before the Sole Arbitrator. The LED & maintenance contract with AMC was completed on December 31, 2025, and the company opted out of the contract. Contractual dues remain pending from AMC, and escrow arrangement with Solar Copyer will continue till realization of total contract proceeds.

Material Uncertainty Relating to Going Concern

The auditors highlighted material uncertainty regarding the company's ability to continue as a going concern due to:

  • Pending implementation of the approved resolution plan
  • Trading suspension of securities by BSE
  • Outcome of the NCLT application cannot be presently ascertained

Other Information

  • The financial results are prepared in accordance with Indian Accounting Standards (Ind AS)
  • The company operates in a single business segment: "LED Products"
  • Previous period figures have been regrouped and reclassified where necessary
  • The Monitoring Committee constituted under the resolution plan was dissolved on February 12, 2025, after reconstituting the Board of Directors

Impact of Audit Qualifications

Management states that the impact of audit qualifications is not quantifiable. The auditors have accepted management's comments and referred to the "Basis of Qualified opinion" in their audit report.