Key Financial Figures (Rs. in thousands)

For Year Ended March 31, 2026:

  • Total Income: ₹1,49,777
  • Total Expenses: ₹1,93,958
  • Loss Before Tax: ₹(44,181)
  • Tax Expense: ₹15
  • Profit After Tax: ₹(44,196)
  • Other Comprehensive Income: ₹(2,836)
  • Total Comprehensive Income: ₹(47,032)
  • Paid-up Equity Share Capital: ₹83,591 (83.591 million shares of ₹10 par value)
  • Other Equity: ₹(37,51,230)
  • Earnings Per Share (Basic and Diluted): ₹(5.29)

For Quarter Ended March 31, 2026:

  • Total Income: ₹3,408
  • Total Expenses: ₹623
  • Profit Before Tax: ₹2,785
  • Tax Expense: ₹(764)
  • Profit After Tax: ₹3,549
  • Other Comprehensive Income: ₹(1,692)
  • Total Comprehensive Income: ₹1,857
  • Earnings Per Share: ₹0.04

Statement of Assets & Liabilities as at March 31, 2026 (Rs. in thousands)

  • Total Assets: ₹14,14,214
  • Total Financial Assets: ₹14,01,074
  • Cash and Cash Equivalents: ₹1,186
  • Receivables: ₹816
  • Loans: ₹11,16,202
  • Investments: ₹18,686
  • Other Financial Assets: ₹1,41,860
  • Total Non-Financial Assets: ₹13,140
  • Total Liabilities: ₹50,81,852
  • Financial Liabilities: ₹50,80,712
  • Payables: ₹1,535
  • Other Payables: ₹1,63,706
  • Borrowings: ₹44,01,296
  • Other Financial Liabilities: ₹5,14,175
  • Non-Financial Liabilities: ₹1,140
  • Total Equity: ₹(36,67,638)
  • Equity Share Capital: ₹83,591
  • Other Equity: ₹(37,51,230)

Auditor's Qualified Opinion

V. Singhi & Associates issued a qualified opinion citing several material issues:

1. Material Uncertainty Related to Going Concern: Net worth fully eroded as of March 31, 2026, raising significant doubt about the company's ability to continue as a going concern.

2. Non-recognition of Interest Expenses: Interest expense of ₹86,144 thousand for the quarter and ₹3,49,783 thousand for the year on unsecured inter-corporate borrowings not recognized, constituting departure from Indian Accounting Standard 109.

3. Balances Subject to Reconciliation: Loans, advances, receivables, and borrowings balances are subject to reconciliation and confirmation, with impact unascertainable.

4. Non-Recognition of Provision on Loans and Advances: Unsecured loans of ₹14,65,171 thousand and accrued interest of ₹1,80,597 thousand outstanding as of March 31, 2026. Only ₹3,87,706 thousand provision made against these amounts deemed doubtful of recovery.

5. Net Owned Fund Requirement: Negative Net Owned Funds (NOF) of ₹(21,15,872) thousand results in non-compliance with RBI minimum NOF requirements.

Emphasis of Matter

Arbitration Award dated September 29, 2025, from International Chamber of Commerce imposes joint liability of ₹50,89,591 thousand on the company and seven other respondents related to a loan default payable to InCred Financial Services Limited (assigned to Real Touch Finance Limited). The company challenged this award on February 5, 2026, in Delhi High Court. The company had recognized liability of ₹11,89,560 thousand in earlier years and has not acknowledged any further liability pending final disposal.

Significant Notes to Financial Results

6. Interest Waiver Negotiations: Company negotiating with lenders for waiver of interest on inter-corporate borrowings, hence interest not provided.

7. Settlement Agreements:

  • Settlement with Aditya Birla Finance Ltd. for term loan default - settled payment of ₹2,50,000 thousand in three tranches using proceeds from sale of Neemrana Land (₹9,02,500 thousand) completed on May 9, 2026.
  • Settlement with IL&FS Asset Management Limited for non-convertible debentures - group companies to pay ₹4,96,700 thousand using proceeds from Neemrana Land sale.

8. Doubtful Loans: Unsecured loans of ₹14,65,171 thousand with accrued interest of ₹1,80,597 thousand outstanding, with only ₹3,87,706 thousand provision made. No interest recognized on these deposits for current period.

9. McNally Bharat Exposure: Inter-corporate loan to McNally Bharat Engineering Co. Ltd. under CIRP - claim of ₹1,66,950 thousand filed, only ₹5,000 thousand admitted. Received ₹40,000 from resolution consideration during the year.

10. Balance Confirmations: Loans, advances, other receivables, and borrowings subject to reconciliation with impact unascertainable.

11. RBI Non-Compliance: Negative NOF of ₹(21,15,872) thousand results in non-compliance with RBI requirements.

Annexure I - Impact of Audit Qualifications

| Particulars | Audited Figures (Rs. thousand) | Adjusted Figures (Rs. thousand) |

| Total Income | 1,49,777 | 1,49,777 |

| Total Expenditure | 1,93,958 | 18,01,803 |

| Net Loss | (44,196) | (16,52,041) |

| EPS | (5.29) | (197.63) |

| Total Assets | 14,14,214 | 1,56,152 |

| Total Liabilities | 50,81,852 | 54,31,635 |

| Net Worth | (36,67,638) | (52,75,483) |

Management views on qualifications:

  • Going concern: Estimation not possible
  • Loans and advances: Believes outstanding dues will be recovered/restructured through group resolution plan, hence no further provision