Financial Results Overview
For the financial year ended 31st March, 2026:
- Total Income: ₹240.57 lakhs
- Total Expenses: ₹91.12 lakhs (comprising Cost of materials consumed ₹26.19 lakhs, Employees Benefit Expenses ₹0.17 lakhs, Finance Cost ₹0.00 lakhs, Depreciation ₹0.17 lakhs, and Other Expenses ₹44.42 lakhs)
- Profit before tax and exceptional items: ₹196.15 lakhs
- Exceptional Items: ₹1.71 lakhs
- Profit before tax: ₹197.86 lakhs
- Tax Expenses: ₹47.15 lakhs (Current tax ₹12.73 lakhs, Deferred tax ₹15.18 lakhs, and Other comprehensive income tax ₹11.32 lakhs)
- Net Profit after tax: ₹149.45 lakhs
- Earnings Per Share (Basic and Diluted): ₹6.55 per share of face value ₹10/- each
Balance Sheet Position as at 31st March, 2026
- Total Assets: ₹3,824.59 lakhs
- Non-current assets: ₹1,304.25 lakhs (including Property, Plant and Equipment ₹0.39 lakhs, Investments ₹8.88 lakhs, and Others ₹1,294.98 lakhs)
- Current assets: ₹2,520.34 lakhs (including Cash Balance ₹0.22 lakhs, Bank Balance ₹35.16 lakhs, and Other current assets ₹2,484.96 lakhs)
- Total Equity: ₹3,710.10 lakhs
- Equity Share capital: ₹228.15 lakhs
- Other Equity: ₹3,481.95 lakhs
- Total Liabilities: ₹114.49 lakhs
- Non-current liabilities: ₹52.55 lakhs (including Borrowings ₹47.48 lakhs and Other financial liabilities ₹4.76 lakhs)
- Current liabilities: ₹61.94 lakhs (including Trade payables ₹0.00 lakhs and Other current liabilities ₹61.94 lakhs)
Cash Flow Statement for FY26
- Net Cash from Operating Activities: Negative ₹690.51 lakhs
- Net Cash from Investing Activities: Positive ₹232.19 lakhs (primarily from Interest Income of ₹232.19 lakhs)
- Net Cash from Financing Activities: Positive ₹2.97 lakhs
- Net Decrease in Cash and Cash Equivalents: ₹455.35 lakhs
- Closing Balance of Cash and Cash Equivalents: ₹35.38 lakhs
Audit Qualifications and Modified Opinion
The statutory auditors, M/s M.I Shah & Co. (Firm Registration No. 119025W), issued a modified opinion highlighting two main areas:
1. Non-compliance with Indian Accounting Standard (Ind AS-19): The company has not provided for employee benefits as required by the accounting standard.
2. Electricity Deposit Uncertainty: A deposit of ₹2,14,16,973/- (₹2.14 crore) with the electricity department, paid under protest pending an appeal before the Hon'ble High Court of Gujarat. The accrued interest income on this deposit has not been accounted for due to uncertainty about the outcome of the appeal. (Refer Note No. 19)
3. Going Concern Consideration: The management has sold the factory land and is in the process of starting a new business from the proceeds. However, no detailed plan or business type has been finalized or communicated to the auditors. The company is exploring new businesses, markets, projects, and partnerships. Based on management's explanation and the company's positive net worth position, the auditors consider the going concern assumption appropriate, though this represents the second consecutive year of qualification on this matter. (Refer Note No. 21)
The effect of these qualifications on assets, liabilities, profit, and reserves is not ascertainable.
Management's Response to Audit Qualifications
In the Statement on Impact of Audit Qualifications (Annexure I), management provided the following responses:
For Electricity Deposit Matter (Third-time qualification):
- Management is confident of a favorable judgment from the Honorable High Court of Gujarat and expects refund of the amount with additional interest
- Impact on financial statements: Not Ascertainable
For Going Concern Matter (Second-time qualification):
- Management is in the process of identifying uses of funds to enter new businesses directly or through joint ventures to enhance shareholder value
- The process may take additional time due to the company's conservative profile
- Management believes the company remains a going concern
- Impact on financial statements: No Impact/NA