Board Meeting Details

The Board of Directors meeting was held on 11th November 2026, commencing at 1:15 PM and concluding at 5:30 PM. The board considered and approved the unaudited financial results for quarter and half year ended 30th September 2026, subject to limited review by the company's statutory auditors, M/s. V. Singhi & Associates.

Financial Results Summary (Rs. in '000 except EPS)

Quarter Ended 30th September 2026:

  • Total Income: ₹2,643
  • Total Expenses: ₹2,412
  • Profit/(Loss) before Tax: ₹231
  • Tax Expense: ₹0
  • Profit after Tax: ₹231
  • Other Comprehensive Income: ₹(1,853)
  • Total Comprehensive Income: ₹(1,622)
  • EPS (Basic & Diluted): ₹0.03

Half Year Ended 30th September 2026:

  • Total Income: ₹2,643
  • Total Expenses: ₹3,102
  • Profit/(Loss) before Tax: ₹(459)
  • Tax Expense: ₹0
  • Profit after Tax: ₹(459)
  • Other Comprehensive Income: ₹3,083
  • Total Comprehensive Income: ₹2,624
  • EPS (Basic & Diluted): ₹(0.05)

Comparative Figures (Quarter Ended 30th September 2025):

  • Total Income: ₹1,46,369
  • Profit/(Loss) before Tax: ₹(44,752)
  • Profit after Tax: ₹(45,531)
  • EPS: ₹(5.45)

Balance Sheet Position as at 30th September 2026 (Rs. in '000)

  • Total Assets: ₹14,14,346
  • Financial Assets: ₹14,01,107 (including Cash ₹598, Receivables ₹1,22,700, Loans ₹11,12,103, Investments ₹21,769)
  • Total Liabilities: ₹50,79,361
  • Financial Liabilities: ₹50,78,261 (including Borrowings ₹43,97,296, Other Financial Liabilities ₹5,14,175)
  • Equity Share Capital: ₹83,591
  • Other Equity: ₹(37,48,606)
  • Total Equity: ₹(36,65,015) [Negative Net Worth]

Cash Flow Statement (Half Year Ended 30th September 2026)

  • Cash from Operating Activities: ₹3,416
  • Cash from Financing Activities: ₹(4,004)
  • Net decrease in cash: ₹(588)
  • Opening cash balance: ₹1,186
  • Closing cash balance: ₹598

Auditor's Qualified Conclusion

Statutory auditors V. Singhi & Associates issued a qualified review report highlighting several critical issues:

a) RBI Registration Cancellation

The Reserve Bank of India cancelled the company's Certificate of Registration (CoR) to carry on NBFC business vide cancellation order dated 22nd June 2026. The company was directed to cease NBFC business immediately but remains governed by RBI Act provisions for outstanding claims.

b) Material Going Concern Uncertainty

The company's net worth has been fully eroded as on 30th September 2026. The ability to continue as a going concern depends on continued availability of finance and future profitability. The auditors state that the use of going concern assumption is not adequately supported as per Ind AS 1.

c) Non-recognition of Interest Expenses

Interest expense of ₹87,898 thousand on inter-corporate borrowings for the quarter ended 30th September 2026 has not been recognized as the company is negotiating with lenders for interest waiver. This constitutes a departure from Ind AS 109 and accrual basis of accounting.

d) Balance Confirmations

Balances relating to Loans, Advances and Borrowings are subject to reconciliation and confirmation, with impact being currently unascertainable.

e) Non-Availability of Bank Statements

Bank statements for HDFC Bank for the first six months were not available for verification as the account is not operational. The auditors relied on management explanations and notional entries.

f) Inadequate Loan Provisions

Unsecured loans of ₹14,61,072 thousand with accrued interest of ₹1,80,082 thousand (total ₹16,41,154 thousand) remain outstanding. Only ₹3,85,113 thousand provision has been made. Auditors believe these are doubtful of recovery and provision is inadequate, understating losses by unascertained amount.

Significant Notes to Financial Results

Note 4: RBI Cancellation

As detailed above, RBI cancelled NBFC registration on 22nd June 2026.

Note 5: Going Concern

Net worth fully eroded, but accounts prepared on going concern basis as management is committed to revival.

Note 6: Settlement Agreements

a) With Aditya Birla Finance Ltd: Settlement agreement dated 7th June 2023 for term loan of ₹15,00,000 thousand settled for ₹2,50,000 thousand. Neemrana Land sale proceeds of ₹9,02,500 thousand to be used for settlement. ₹2,50,000 thousand already paid.

b) With IL&FS Asset Management: Settlement agreement dated 5th May 2023 for NCDs worth ₹25,00,000 thousand settled for ₹4,96,700 thousand cash plus Neemrana Land sale proceeds appropriation.

Note 7: Interest Non-recognition

₹87,898 thousand interest on inter-corporate borrowings not provided for quarter ended 30th September 2026 due to ongoing negotiations for interest waiver.

Note 8: Arbitration Matter

Arbitration Award dated 29th September 2025 from ICC Court of Arbitration fixed joint liability of eight parties including company at ₹50,89,591 thousand to Real Touch Finance Limited. Company and Williamson Magor & Co. Limited filed petition against award in Delhi High Court on 5th February 2026. Company had recognized liability of ₹11,89,560 thousand in earlier years; no further liability recognized pending appeal disposal.

Note 9: Loan Provisions

Unsecured loans of ₹14,61,072 thousand with accrued interest ₹1,80,082 thousand outstanding, with only ₹3,85,113 thousand provision made.

Note 10: Balance Confirmations

Loans, Advances, and Borrowings balances subject to reconciliation and confirmation.

Note 11: Bank Statement Unavailability

HDFC Bank statements for first six months not available as account is not operational. Balances and transactions considered based on notional entries/proposed adjustments.

Additional Information

The main business was NBFC activities (now cancelled). All activities within India, no separate reportable segments. Financial results prepared considering prudential norms applicable to NBFCs.