Security ID

TOYAMSL

Toyam Sports Limited has submitted a disclosure to The Metropolitan Stock Exchange of India Ltd. and Bombay Stock Exchange pursuant to SEBI Notification No SEBI/LAD-NRO/GN2016-17/001 dated May 26, 2016 and Circular No CIR/CFD/CMD/56/2016 dated May 27, 2016. This disclosure concerns the impact of audit qualifications on the company's standalone and consolidated financial results for the quarter and year ended March 31, 2026, as required under Schedule VII read with Regulation 33 and Regulation 52 of SEBI (LODR) (Amendment) Regulations, 2016.

Financial Figures (Standalone)

The statement shows that the audit qualifications did not result in any numerical adjustments to the reported figures for the year ended March 31, 2026:

  • Turnover/Total Income: ₹0.65 lakh (both reported and adjusted)
  • Total Expenditure: ₹30.43 lakh (both reported and adjusted)
  • Net Profit/(Loss): ₹-29.78 lakh loss (both reported and adjusted)
  • Earnings Per Share: 0 (reported), 0 (adjusted)
  • Total Assets: ₹29,552.19 lakh (both reported and adjusted)
  • Total Liabilities: ₹712.12 lakh (both reported and adjusted)
  • Net Worth: ₹28,840.07 lakh (both reported and adjusted)

Audit Qualifications (Standalone and Consolidated)

The auditors, ASGR & Co. (ICAI Firm Reg. No. 148769W), issued a qualified opinion with repetitive qualifications for both standalone and consolidated results. The key qualifications include:

1. Impairment Provision Failure: The company has not provided for impairment of its financial assets using the Expected Credit Loss (ECL) approach as required by Ind AS 109. Financial activities constitute over 50% of the company's funds, but management has not assessed these assets. Auditors cannot quantify potential future impact due to unrecognized impairment.

2. Impairment Analysis Omission: The company has not carried out impairment analysis of loans and advances to various companies (except those already provided for) as required by Ind AS 36, despite indications of impairment. Auditors cannot express an opinion on materiality, recoverability, or financial statement impact.

3. Regulatory Non-Compliance: During the previous year ended March 31, 2025, and the current year ended March 31, 2026, financial assets exceeded 50% of total assets and income from financial assets exceeded 50% of total revenue. Consequently, the company is required to comply with Section 45-IA of the RBI Act and other provisions of the Companies Act. Information regarding these compliances was not provided to auditors, who cannot comment on financial and legal implications.

4. SEBI Investigation: During the quarter, the company received notices from SEBI. Pending completion of the investigation, the financial impact for the quarters and year ended March 31, 2026, is not ascertainable. The Enforcement Directorate has frozen some shares. Management has not shared information about other ongoing proceedings related to the share freezing, and auditors cannot express an opinion on potential impact.

5. Economic Benefits Assessment: The company has not deliberated on the economic benefits realizable from Merchandizing Agreements entered into. If economic benefits contracted for over the next 12 months are not realized, auditors cannot express an opinion.

6. Statutory Non-Compliance: The company has not complied with statutory liabilities such as Professional Tax and TDS. Information regarding these compliances was not provided to auditors, who cannot comment on financial and legal implications.

Management's Views

For qualifications where impact is not quantified, management provided the following views:

  • Impairment Provision: Management has not considered it necessary to provide for impairment or apply ECL approach as they foresee no potential credit loss. Based on internal assessment of credit risk and recoverability, management views financial instruments as secure and parties as creditworthy. No provision has been made as there is no reasonable indication of expected loss.
  • Impairment Analysis: Management has not carried out impairment analysis on loans and advances as no loss is currently anticipated. Loans identified as non-recoverable in the past have already been written off.
  • SEBI Investigation: The company is fully cooperating with SEBI and has responded to notices. As investigation is underway, financial impact cannot be determined. Management confirms no other ongoing proceedings related to share freezing to the best of its knowledge.
  • Economic Benefits: According to merchandise agreements, the party has agreed to pay interest, which constitutes the economic benefit derived from advances provided for merchandise.
  • Statutory Liabilities: Owing to shortage of funds caused by losses suffered in the LLC T20 Cricket League, the company is presently unable to meet obligations related to TDS, professional tax, and other statutory liabilities.

Auditors' Comments

Auditors have stated "No further comments" regarding management's views on the unquantified qualifications.

Financial Figures (Consolidated)

The consolidated statement shows adjusted figures after audit qualifications:

  • Turnover/Total Income: ₹1,958.10 lakh
  • Net Profit/(Loss): ₹-1,866.36 lakh loss
  • Total Assets: ₹29,885.61 lakh
  • Total Liabilities: ₹2,080.61 lakh