Financial Performance Highlights

Quarter Ended September 30, 2026:

  • Revenue from Operations: ₹0
  • Other Income: ₹250
  • Total Income: ₹250
  • Total Expenses: ₹4,49,480
  • Loss before tax: ₹(4,49,230)
  • Net Loss for the quarter: ₹(4,49,230)
  • Basic and Diluted EPS: ₹(0.98)

Half Year Ended September 30, 2026:

  • Total Income: ₹250 (compared to ₹376 in same period previous year)
  • Total Expenses: ₹7,90,816
  • Loss before tax: ₹(7,90,566)
  • Net Loss for half year: ₹(7,90,566)
  • Basic and Diluted EPS: ₹(1.73)

Balance Sheet Position (as at September 30, 2026)

  • Total Assets: ₹16,71,315
  • Equity Share Capital: ₹45,67,620
  • Other Equity: ₹(7,47,16,063)
  • Total Equity (Negative Net Worth): ₹(2,01,48,443)
  • Accumulated Losses: ₹2,58,12,483
  • Total Liabilities: ₹16,71,315

Cash Flow Statement (Half Year Ended September 30, 2026)

  • Net Cash used in Operating Activities: ₹(2,03,597)
  • Net Cash from Investing Activities: ₹199
  • Net Cash from Financing Activities: ₹2,06,919
  • Net Increase in Cash Equivalents: ₹3,520
  • Cash & Cash Equivalents at period end: ₹4,098

Adverse Audit Opinion Key Issues

1. Going Concern Assumption Inappropriate: Company has accumulated losses of ₹258.12 crore resulting in negative net worth of ₹201.48 crore. Factory has been non-operational since 2017. Machineries require major overhauling cost and company unable to obtain raw material supply support. No new orders received to substantiate going concern assumption.

2. Non-Recognition at Fair Value: Company has not recognized:

  • Amount due to Fujikura Limited: ₹2.21 crore
  • Trade Receivables: ₹4.70 crore

Impact on financial statements not ascertainable.

3. Other Qualification Matters:

  • No actuarial valuation conducted for Gratuity and Leave encashment benefits as of September 30, 2026
  • Balances of trade receivables, trade payables, advances and deposits (other than TCIL) subject to confirmation
  • Statutory dues payable amounting to ₹334.97 lakhs including TDS/TCS payable (₹159.52 lakhs), provision for sales tax demand (₹45.83 lakhs), and property tax payable (₹96.56 lakhs)

Contingent Liabilities

1. Commercial Tax Demand: ₹1,86,088 additional sales tax for FY2000-2002, stayed by Madras High Court with ₹75,000 deposit. Judgment received on 14.11.2025 quashing assessment orders.

2. Sales Tax Demand: ₹22,950 for non-submission of 'C' Forms from BSNL/MTNL for AY2001-04

3. Customs Demand: ₹102,067 for classification difference of Optical Fibre (2006-07), matter remanded back to Commissioner

4. Stock Exchange Penalties: ₹47,766 for 2018-19 and ₹38,373 for 2019-20 for SEBI LODR non-compliance

5. Income Tax Demand: ₹2,656 for AY2009-10 under dispute

Revival Efforts

1. Lease Proposal: RFP published in March 2023 for lease of manufacturing facilities. Single quote received and LOA issued on 24.05.2023. However, TIDCO directed to refrain from proceeding on 10.10.2023. Lease cancelled.

2. Business Diversification: Exploring diversification to sustain in competitive cable industry.

3. Investment Partners: Exploring business partners for fresh investment for factory revival and new business areas.

Other Significant Notes

  • Company under rehabilitation period monitored by Monitoring Agency since BIFR approved scheme in 2010-11
  • No provision for deferred tax assets due to uncertainty of future taxable income
  • Financial liabilities measured at carrying value rather than fair value due to on-demand nature
  • Theft occurred in electrical substation on 16.08.2021 with insurance claim of ₹48,970 declined by New India Assurance
  • No provision made for long-pending debtors amounting to ₹3,39,505 and ₹13,397 due to ongoing legal proceedings