Board Meeting Details

The Board of Directors meeting was held on 25th May 2026, commencing at 5:45 PM and concluding at 6:20 PM.

Financial Results Approval

The Board approved the Audited Standalone Financial Results for the fourth quarter and financial year ended 31st March, 2026. The following documents were enclosed:

  • Audited Standalone Financial Results
  • Auditor's Report
  • Statement of Impact of Audit Qualifications pursuant to Regulation 33(3)(d) of Listing Regulations

Financial Performance (₹ in Lakhs)

Year Ended 31st March, 2026:

  • Total Income: ₹48.37
  • Net Loss after tax: ₹(178.35)
  • Total Comprehensive Loss: ₹(167.16)
  • Equity Share Capital: ₹1,287.00
  • Reserves (negative): ₹(9,104.37)
  • Earnings Per Share (Basic & Diluted): ₹(1.39)

Quarter Ended 31st March, 2026:

  • Total Income: ₹48.14
  • Net Profit after tax: ₹10.50
  • Total Comprehensive Loss: ₹(60.78)
  • Earnings Per Share (Basic & Diluted): ₹0.08

Comparative Figures (Year Ended 31st March, 2025):

  • Total Income: ₹673.38
  • Net Profit after tax: ₹358.13
  • Total Comprehensive Loss: ₹(1,181.59)
  • Earnings Per Share: ₹2.78

Balance Sheet Position (as at 31st March, 2026)

Assets:

  • Total Assets: ₹679.17
  • Financial Assets: ₹553.71 (including Cash & Cash Equivalents: ₹5.15, Other Investments: ₹547.52)
  • Non-Financial Assets: ₹125.46 (including Investment Property: ₹88.16, Property Plant & Equipment: ₹37.30)

Liabilities and Equity:

  • Financial Liabilities: ₹8,297.57
  • Non-Financial Liabilities: ₹66.34
  • Equity Share Capital: ₹1,419.63
  • Other Equity (negative): ₹(9,104.37)
  • Total Equity: ₹(7,684.74)

Cash Flow Statement (Year Ended 31st March, 2026)

  • Net Cash from Operating Activities: ₹(173.26)
  • Net Cash from Investing Activities: ₹(2.54)
  • Net Cash from Financing Activities: ₹96.73
  • Net Decrease in Cash: ₹(76.54)
  • Cash at beginning: ₹81.69
  • Cash at end: ₹5.15

Corporate Actions Approved

1. Book Closure approved from 21st August 2026 (Friday) to 27th August 2026 (Thursday) for FY 2025-26

2. 52nd Annual General Meeting to be convened on 27th August 2026 through VC/OAVM mode

Critical Notes to Financial Results

Corporate Guarantee Exposures

The Company had given Corporate Guarantees to lenders of Amrit Jal Ventures Private Limited (AJVPL) and its wholly owned subsidiary Gati Bhasmey Limited aggregating to ₹25,619.80 Lakhs. Certain lenders have invoked guarantees and raised claims aggregating to ₹17,820.89 Lakhs. The Company made a provision of ₹7,798.91 Lakhs during 2019-2020, considering the disputed nature of the claim. The balance ₹17,820.89 Lakhs is disclosed as contingent liability.

Investments

During the year, the Company's investment in Allcargo Gati Limited underwent a stock split where 10 equity shares were subdivided into 63 equity shares. The total shares held increased from 284,838 to 1,794,479 shares without change in overall cost of investment.

Borrowings and Security Arrangements

During earlier years, the Company availed borrowings and arranged shares held by Mahendra Kumar Agarwal & Sons HUF and Manish Agarwal Benefit Trust as additional security. Lenders sold these shares due to defaults and recovered their dues fully. The Company recognized a liability of ₹364.25 Lakhs in favor of guarantors, of which ₹206.37 Lakhs has been paid and ₹157.88 Lakhs remains outstanding as at 31st March 2026.

Additionally, lenders invoked shares given as guarantee by Mr. Mahendra Kumar Agarwal and realized ₹38 Lakhs. The company recognized liability of ₹38 Lakhs in favor of Mr. Mahendra Kumar Agarwal.

Going Concern Uncertainty

Due to adverse developments in entities to whom the company has advanced loans/given guarantees/made investments, substantial exposures adversely affect future incomes. These factors substantially affected operations and indicate uncertainties relating to going concern status. Management is identifying alternatives/new areas to venture into for reviving the company. Financial statements have been prepared on going concern basis.

RBI Regulatory Matter

The Company received a notice from RBI directing it to surrender its Certificate of Registration (CoR) for voluntary deregistration as an NBFC due to non-maintenance of minimum Net Owned Funds (NOF). The Company filed a writ petition before the Hon'ble High Court of Telangana seeking to quash the notice.

On 07.07.2025, the Court passed an interim order directing RBI not to take coercive action until next hearing. RBI filed its reply, interim stay continues. Matter listed for final hearing on 10.06.2026.

Write-backs

During the year, interest payable previously recognized (₹49.96 Lakhs) was written back. Sundry Creditors (₹0.84 Lakhs) and Sundry Advances receivable (₹2.68 Lakhs) were written back/written off.

Auditor's Qualified Opinion

Statutory Auditors, G.D. Upadhyay & Co., issued a qualified opinion highlighting:

1. The Company ought to have recognized the full ₹17,820.89 Lakhs liability for invoked corporate guarantees instead of partial provision

2. Preparation of financial statements on going concern basis may not be appropriate given the liabilities devolved on the Company

The auditors stated that had these matters been given effect, the loss for the year and retained earnings would be significantly higher.

Emphasis of Matter

Auditors emphasized the RBI communication regarding non-compliance with minimum NOF requirements and surrender of CoR.

Impact of Audit Qualifications

As per the Statement of Impact of Audit Qualifications:

  • Net Loss would increase from ₹(178.35) Lakhs to ₹(17,999.24) Lakhs if full guarantee liability recognized
  • Earnings Per Share would worsen from ₹(1.39) to ₹(139.83)
  • Net Worth would decrease from ₹(7,684.74) Lakhs to ₹(25,505.63) Lakhs