Board Meeting Outcome
The Board of Directors of TCI Finance Limited met on October 28, 2026 (commenced at 3:50 PM, concluded at 4:01 PM) and approved the unaudited standalone financial results for the quarter ended September 30, 2026, in accordance with Regulation 33 of SEBI (LODR) Regulations, 2015.
Financial Results Summary (Quarter Ended September 30, 2026)
Revenue from Operations: ₹0 (Zero across all categories: Interest Income, Dividend Income, Rental Income, Profit on sale of investments)
Total Income: ₹0
Total Expenses: ₹51.00 lakh (Finance Costs: ₹15.44 lakh, Employee Benefits: ₹24.46 lakh, Other expenses: ₹11.10 lakh)
Net Loss before tax: ₹(51.00) lakh
Tax Expenses: ₹0
Net Loss for the period: ₹(51.00) lakh
Other Comprehensive Income: ₹(4.43) lakh
Total Comprehensive Income: ₹(55.43) lakh
Earnings Per Share (Basic & Diluted): ₹(0.40)
Half Year Performance (Ended September 30, 2026)
Net Loss: ₹(85.62) lakh
Total Comprehensive Income: ₹(90.75) lakh
EPS (Basic & Diluted): ₹(0.67)
Balance Sheet Highlights (As at September 30, 2026)
Total Assets: ₹674.67 lakh
- Financial Assets: ₹547.53 lakh (Cash: ₹4.62 lakh, Other Investments: ₹541.64 lakh, Other financial assets: ₹1.27 lakh)
- Non-Financial Assets: ₹127.14 lakh (Investment Property: ₹88.16 lakh, Property, plant and equipment: ₹38.77 lakh, Other intangible assets: ₹0.21 lakh)
Total Liabilities: ₹8,450.15 lakh
- Financial Liabilities: ₹8,384.02 lakh (Trade payables: ₹13.97 lakh, Loans: ₹335.36 lakh, Other financial liabilities: ₹8,034.69 lakh)
- Non-Financial Liabilities: ₹66.13 lakh (Current tax liabilities: ₹32.69 lakh, Provisions: ₹9.78 lakh, Deferred tax liabilities: ₹23.66 lakh)
Equity: Negative ₹(7,775.48) lakh
- Equity Share Capital: ₹1,419.63 lakh (Face value ₹10 each)
- Other Equity: Negative ₹(9,195.11) lakh
Cash Flow Statement (Half Year Ended September 30, 2026)
Cash from Operating Activities: ₹(78.56) lakh
Cash from Investing Activities: ₹(1.68) lakh
Cash from Financing Activities: ₹79.71 lakh (Repayment of borrowings)
Net Change in Cash: ₹(0.53) lakh
Cash at period end: ₹4.62 lakh
Key Notes to Financial Statements
Note 1: The unaudited financial results were reviewed by the audit committee and approved by the Board on October 28, 2026, in accordance with Regulation 33 of SEBI LODR Regulations, 2015. The results were subjected to limited audit by statutory auditors with a modified report.
Note 2: The Company is mainly engaged in financing activities constituting a single business segment.
Note 3: Corporate Guarantee Exposure
- The Company provided corporate guarantees to lenders of Amrit Jal Ventures Private Limited (AJVPL) and its wholly owned subsidiary Gati Bhasmey Limited aggregating ₹25,619.80 lakh
- Certain lenders invoked guarantees and raised claims aggregating ₹17,820.89 lakh
- Company made provision of ₹7,798.91 lakh on estimated basis considering disputed nature of claim
- Balance ₹17,820.89 lakh treated as contingent liability
Note 4: Investments
- Investment in Allcargo Gati Limited underwent stock split: 10 equity shares subdivided into 63 equity shares
- Total holding increased from 284,838 shares to 1,794,479 shares without change in overall cost
- No change in total carrying value of investment
Note 5: Borrowings and Security Arrangements
- Company availed borrowings with 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 dues fully
- Company recognized liability of ₹364.25 lakh in favor of guarantors
- Paid ₹206.37 lakh, balance ₹157.88 lakh outstanding as at September 30, 2026
- During current period, lenders invoked shares given by Mr. Mahendra Kumar Agarwal and realized ₹38 lakh
- Company recognized liability of ₹38 lakh in favor of Mr. Mahendra Kumar Agarwal
Note 6: Going Concern
- Adverse developments in entities to whom company advanced loans/gave guarantees/investments made
- Substantial exposures adversely affect future incomes
- Management identifying alternatives/new areas to venture into for revival
- Financial statements prepared on going concern basis
Note 7: RBI Regulatory Matter
- RBI issued notice directing surrender of Certificate of Registration (CoR) for voluntary deregistration as NBFC due to non-maintenance of minimum Net Owned Funds (NOF)
- Company filed writ petition before Hon'ble High Court of Telangana seeking to quash notice
- Interim order dated July 7, 2025: RBI directed not to take coercive action until next hearing
- Matter listed for final hearing on January 28, 2026, then adjourned to June 10, 2026
- Interim stay remains in force, RBI seeking time to engage senior counsel
Note 8: Write-backs
- Interest payable previously recognized: written back ₹49.96 lakh
- Sundry Creditors: written back ₹0.84 lakh
- Sundry Advances: written off ₹2.68 lakh
Note 9: Auditor Qualifications
- Statutory Auditors qualified opinion regarding matters in Note 3 (corporate guarantee provisions) and Note 6 (going concern)
- Emphasized matter in Note 7 (RBI regulatory matter)
Note 10: Corresponding previous period figures regrouped/reclassified for comparability
Note 11: Notice posted on company website (www.tcifl.in) and stock exchange websites
Note 12: Board authorized Mr. M Sreenivasuloo to sign and submit financials to stock exchanges
Auditor's Limited Review Report
G.D. Upadhyay & Co., Chartered Accountants issued a qualified conclusion on the financial results:
Basis for Qualified Conclusion:
- Note 3: Company should have recognized full liability of ₹17,820.89 lakh for invoked corporate guarantees rather than partial provisioning
- Note 6: Preparation of financial statements on going concern basis not appropriate given liabilities devolved on Company
- Unable to comment on effect on loss and retained earnings had these matters been properly accounted for
Emphasis of Matter:
- Note 7: RBI communication regarding non-compliance with minimum Net Owned Funds requirement and surrender of Certificate of Registration