Board Meeting Outcomes

The Board of Directors meeting was held on Tuesday, October 13, 2026, from 5:00 PM to 5:30 PM. The Board:

1. Approved the unaudited financial results for the quarter ended September 30, 2026, on the recommendation of the Audit Committee.

2. Approved Monday, October 26, 2026, as the Record Date for determining the entitlement of existing shareholders to receive shares in accordance with the NCLT order dated February 26, 2026.

Financial Results Overview (Quarter Ended September 30, 2026)

The financial results are presented in ₹ lakhs.

Balance Sheet Position as at September 30, 2026:

  • Total Assets: ₹1,484.97 lakh
  • Non-Current Assets: ₹1,417.91 lakh
  • Property, Plant and Equipment: ₹381.62 lakh
  • Capital work-in-progress: ₹226.81 lakh
  • Loans: ₹729.14 lakh
  • Other non-current assets: ₹80.33 lakh
  • Current Assets: ₹67.07 lakh
  • Trade receivables: ₹55.60 lakh
  • Cash and cash equivalents: ₹0.06 lakh
  • Other current assets: ₹11.41 lakh
  • Equity and Liabilities: ₹1,484.97 lakh
  • Equity: ₹1,378.54 lakh
  • Equity Share capital: ₹310.05 lakh
  • Other Equity: ₹1,068.49 lakh
  • Current Liabilities: ₹106.43 lakh
  • Borrowings: ₹104.60 lakh
  • Trade payables (other than micro/small enterprises): ₹17.11 lakh
  • Other current liabilities: ₹1.21 lakh

Comparative Position (Audited as at March 31, 2026):

  • Total Assets: ₹1,538.41 lakh
  • Equity: ₹1,128.36 lakh
  • Current Liabilities: ₹100.00 lakh

Cash Flow Statement (Quarter Ended September 30, 2026):

  • Net Cash from Operating Activities: ₹(40.70) lakh
  • Net Cash from Financing Activities: ₹41.00 lakh (from increase in borrowing)
  • Net Increase in Cash and Cash Equivalents: ₹0.30 lakh
  • Closing Cash and Cash Equivalents: ₹0.06 lakh

Auditor's Limited Review Report

SK Bhavsar & Co., Chartered Accountants, issued a limited review report dated October 13, 2026. Their conclusion was not modified, but they emphasized two matters:

1. The NCLT Relief Order dated February 26, 2026, was given effect through Fresh Start Accounting in the audited financials for FY26. No further adjustment was made this quarter.

2. The allotment of 1,00,00,000 new equity shares remains pending approval. No shares have been allotted, and no fresh capital has been infused. Trading remains suspended.

Key Notes to Financial Results

Note 1: Background

The company underwent Corporate Insolvency Resolution Process (CIRP) from January 11, 2021, was ordered into liquidation on April 28, 2022, and was sold as a going concern. Control was transferred to new management on November 7, 2024, per the NCLT order.

Note 2: NCLT Order Status

The NCLT order (I.A. No. 840 of 2025) dated February 26, 2026, granted reliefs including extinguishment of pre-transfer liabilities, capital reduction, and Board reconstitution. These were fully accounted for in FY26 audited financials. No adjustments were made this quarter.

Note 3: Fresh Start Accounting

Executed once in FY26 financials. Asset values and capital reserve from liability writeback were carried forward unchanged to Q2 FY27, subject to normal depreciation and operational transactions.

Note 4: Capital Structure and Listing Status

The existing equity share capital was cancelled per the NCLT order. The company is seeking approvals to allot 1,00,00,000 new equity shares (95% to new promoters/acquirer & nominees, 5% to public/strategic investors). As of September 30, 2026, no shares have been allotted, and trading remains suspended on BSE and NSE.

Note 5: Impairment of Fixed Assets

The impairment assessment under Ind AS 36 for transferred plant and fixed assets remains in progress. No impairment loss has been recognized this quarter.

Note 6: Provision for Taxes

No current tax provision due to losses. Deferred tax assets are not recognized due to uncertainty of future taxable profits.

Note 7: Balance Confirmations

Residual historical balances of trade receivables, loans, advances, and deposits from the pre-Fresh-Start period remain subject to confirmation and reconciliation. No adjustments were made this quarter.

Note 8: Going Concern Assessment

The company's ability to continue as a going concern is dependent on the timely completion of the pending equity allotment/capital infusion, resumption of trading, and regularization of regulatory compliances. The financial results are prepared on a going concern basis considering the legal protections under the NCLT order and Section 32A of the IBC.