Key Financial Figures (Standalone)
The audited financial figures for FY26, which remain unadjusted despite the qualifications, are as follows:
- Turnover / Total Income: ₹8.26 Lakhs
- Total Expenditure: ₹23.51 Lakhs
- Net Loss: ₹(15.25) Lakhs
- Earnings Per Share: ₹(0.08)
- Total Assets: ₹1991.24 Lakhs
- Total Liabilities: ₹1991.24 Lakhs
- Net Worth: ₹1958.57 Lakhs
Details of Audit Qualifications and Impact
The audit report contains six qualified opinions. For all qualifications, management's view is uniformly stated as "Management is looking into concern matter." No financial impact has been quantified by management or the auditor for any qualification.
Qualification 1: Non-provision for Doubtful Advance
- Details: Non-provision for doubtful advances amounting to ₹232.26 Lakhs granted to Topson Iron Ore India Private Limited. The auditor states that in the absence of sufficient audit evidence regarding recoverability, they are unable to determine the consequential impact on the financial statements.
- Type: Qualified Opinion
- Frequency: First time appearance
Qualification 2: Non-registration with RBI
- Details: The company was required to obtain registration under section 45-IA of the Reserve Bank of India Act, 1934 but has not done so. Management represents that the requirement arose because no new project was undertaken during the year. The impact of this non-compliance has not been determined.
- Type: Qualified Opinion
- Frequency: First time appearance
Qualification 3: Non-recognition of Employee Benefits
- Details: The company has not recognised/provided for employee retirement benefits in accordance with Ind AS 19. Obligations are accounted for on a cash basis. In the absence of an actuarial valuation report, the liability is undetermined and the impact unquantified.
- Type: Qualified Opinion
- Frequency: First time appearance
Qualification 4: Investment Valuation Based on Outdated Information
- Details: Certain investments were measured at fair value per Ind AS 109 based on financial information available as of 31 March 2021, as latest financials of investee entities were unavailable. The impact on carrying value and financial statements is undeterminable.
- Type: Qualified Opinion
- Frequency: First time appearance
Qualification 5: Non-compliance with Ind AS 109 on Loans
- Details: Loans and advances were not measured at fair value upon initial recognition as required by Ind AS 109. They were recognised at the transaction amount without discounting, potentially misstating the carrying amount of financial assets and related finance income.
- Type: Qualified Opinion
- Frequency: First time appearance
Qualification 6: Non-charging of Interest on Loans
- Details: The company did not charge interest on loans granted at a rate not lower than the prevailing yield of Government Security of corresponding tenure, as required under Section 186(7) of the Companies Act, 2013. Interest income amounting to ₹24.91 Lakhs was not recognised, resulting in an understatement of income and an overstatement of loss by ₹24.91 Lakhs.
- Type: Qualified Opinion
- Frequency: First time appearance
Management's Views and Explanations
For all six qualifications, management's response is identical: "Management is looking into concern matter." Management has not provided any estimation of the financial impact for any qualification and has stated "NA" for its ability to estimate the impact.
Auditor's Comments on Management's Response
The auditor has provided no comments ("NA") on management's response for all qualifications where the impact is not quantified.
Approval and Compliance
This Statement on Impact of Audit Qualifications was reviewed and approved by the Audit Committee and the Board of Directors at their respective meetings held on 29th May 2026.