Key Financial Figures

Consolidated Financial Results (₹ in Lakhs):

  • Revenue from Operations: 717.74 (Q1 2026) vs 1,891.87 (Q1 2025)
  • Other Income: 166.33 (includes foreign exchange gain of ₹162.15 lakhs)
  • Total Income: 884.07 vs 2,544.76 (Q1 2025)
  • Total Expenses: 838.30 vs 2,446.82 (Q1 2025)
  • Profit before tax: 45.77 vs 97.94 (Q1 2025)
  • Profit after tax: 43.83 vs 95.65 (Q1 2025)
  • Earnings per share (Basic & Diluted): ₹0.03 vs ₹0.07 (Q1 2025)
  • Paid-up equity share capital: ₹14,228.04 lakhs (face value ₹10 each)
  • Reserves: negative ₹39,121.23 lakhs

Standalone Financial Results (₹ in Lakhs):

  • Turnover: 873.08 (Q1 2026) vs 2,544.76 (Q1 2025)
  • Profit before tax: 33.12 vs 95.65 (Q1 2025)
  • Profit after tax: 33.12 vs 95.65 (Q1 2025)
  • Total Comprehensive Income: 33.12 vs 95.65 (Q1 2025)

Operational Highlights

  • Zinc tank rupture on 11th April 2026 caused production suspension from 15th April to facilitate recovery of accumulated zinc material
  • Part of recovered material sold as Zinc Dross at scrap value: ₹91.06 lakhs
  • Sales adversely impacted due to production stoppage
  • Operations expected to resume fully by 31st August 2026
  • Inventory valued at ₹669.96 lakhs using weighted average cost method

Legal and Regulatory Matters

SEBI Case:

  • SEBI order dated 31/03/2021 prohibited company from accessing securities market for 3 years for GDR violations
  • SAT order dated 21/02/2023 reduced penalty from ₹1,000 lakhs to ₹25 lakhs and restricted debarment period
  • SEBI filed civil appeal before Supreme Court, admitted on 02/01/2024
  • ₹25 lakh penalty provision made but unpaid as of 30/06/2026

SARFAESI Proceedings:

  • Consortium banks initiated proceedings in February 2014 for ₹19,319.00 lakhs dues as of 31/01/2014
  • Symbolic possession taken of Khopoli unit assets on 29/05/2014
  • Loan assigned to Invent Assets Securitization on 31/03/2018
  • Debt further assigned to India SME ARC during current quarter
  • Matter pending before DRT Pune, next hearing on 19/10/2026

Debt Settlement MOU:

  • MOU with Tribus Real Estate Pvt Ltd for takeover and settlement of bank borrowings aggregating ₹15,894.92 lakhs as of 31/12/2025
  • TREPL repaid ₹6,599.92 lakhs by 24/03/2026, balance ₹9,295.00 lakhs unpaid
  • India SME ARC claimed total dues of ₹1,189.41 crores as of 25/03/2026
  • Company maintains ₹9,295.00 lakhs is full and final settlement amount

GST Demands:

  • ₹1,836.95 lakhs demand for FY 2018-19 - rectified to ₹0.79 lakhs penalty, paid on 07/08/2026
  • ₹28.76 lakhs demand for FY 2020-21 - appeal filed
  • ₹27.78 lakhs and ₹25.28 lakhs demands for FY 2021-22 and 2019-20 - appeals filed

Other Legal Matters:

  • Trade receivable/payable dispute with Ess Jay Global Ventures and Mango Capital LLC involving ₹150 lakhs
  • Suspected fraud of ₹758 lakhs by consultant in Q3 FY2025-26, investigation ongoing
  • Properties worth ₹131.07 lakhs recovered as compensation, accounted as exceptional item
  • Non-compliance with Companies Act regarding public deposits repayment and liquid asset maintenance

Auditor Qualifications

Devam & Associates LLP issued qualified limited review report citing:

  • Material non-compliance with Companies Act deposit rules
  • Inability to verify trade receivable/payable balances due to lack of confirmations
  • Inability to verify bank balances of ₹40.99 lakhs in frozen accounts
  • Material uncertainty about going concern basis due to negative net worth
  • Inability to verify inventory valuation of ₹669.96 lakhs

Corporate Governance

  • Board meeting held on 13/08/2026 from 6:00 PM to 10:30 PM
  • Trading window to open after 48 hours of results publication
  • Audit committee reviewed and recommended results before board approval
  • Negative net worth continues due to accumulated losses
  • Financial statements prepared on going concern basis based on management assessment

Segment Reporting

  • Single segment: Pipes
  • Revenue from India: ₹692.57 lakhs (Products ₹265.43 lakhs, Services ₹427.14 lakhs)
  • Revenue outside India: ₹25.17 lakhs (Products only)
  • Segment assets in India: ₹14,576.24 lakhs
  • Segment assets outside India: ₹817.80 lakhs

Additional Provisions

  • MSME status not confirmed from all vendors, no interest liability provision made
  • New Labour Codes impact: ₹5.40 lakhs additional employee benefit expense
  • Frozen bank accounts: ₹40.99 lakhs provision made
  • Public issue proceeds utilization: ₹13,289 lakhs spent out of ₹13,500 lakhs, balance in deposits
  • Provision for doubtful advances: ₹10,925 lakhs