Key Financial Figures

  • Net Loss for FY2026: Rs (710.14) lakhs
  • Earnings Per Share (Basic & Diluted): Rs (1.30)
  • Total Assets as of March 31, 2026: Rs 8,249.49 lakhs
  • Total Liabilities: Rs 5,156.20 lakhs
  • Net Worth: Rs 3,093.29 lakhs
  • Cash and Cash Equivalents: Rs 0.91 lakhs
  • Intangible Assets: Rs 81.07 lakhs (carried at Rs 13 crore subject to valuation)
  • Capital Work-in-Progress: Rs 1,300.00 lakhs

Audit Qualifications Basis

The auditors issued a qualified opinion citing multiple issues:

1. Advance Payments to Suppliers: Considerable payments made as advances to suppliers quantifiable only after detailed investigation. Matter is sub-judice. ECL provisioning pending investigation outcome.

2. Ind AS Adjustments: Ind AS adjustments yet to be effected in books. Impact on Profit and Loss accounts and Balance Sheet unquantifiable.

3. Related Party Transactions: Various transactions with directors and related parties at non-arm's length prices. Company running current account with Director/s potentially attracting Section 185 of Companies Act.

4. Expected Credit Loss: Non-compliance with Ind AS 109 - no measurement of loss allowance for expected credit loss on financial instruments. Part of trade receivables are overdue.

5. Operating Segments: Non-compliance with Ind AS 108 - no reporting of operating segments despite trading in multiple commodities beyond paper.

6. Intangible Assets: Intangible assets worth Rs 13 crore not amortized and subject to valuation. Impact unquantifiable.

7. Loan Defaults: Company has defaulted on various unsecured loans.

8. Director Payments: Majority of business operation payments made directly by Directors due to inadequate funds. Lack of supporting agreements and audit trail prevents verification.

9. TDS Compliance: Irregular deposit/payment of TDS dues during year. Potential interest, penalty, and statutory implications unascertainable.

Material Uncertainty - Going Concern

Company passed resolution in Extra-Ordinary General Meeting held on May 7, 2026 for initiation of Pre-Packaged Insolvency Resolution Process (PPIRP) / Corporate Insolvency Resolution Process (CIRP) under Insolvency Bankruptcy Code, 2016. This indicates material uncertainty that may cast significant doubt on Company's ability to continue as going concern.

Emphasis of Matters

1. Non-compliance with Ind AS 19 - Employee Benefits not provided as company finalizing structure

2. Non-maintenance and non-audit of cost records as required u/s 148 of Companies Act, 2013

3. Non-appointment of Internal Auditor as required u/s 138 of Companies Act 2013

4. Outstanding statutory dues including TCS and TDS yet to be paid

5. Balances of Debtors, Creditors, Security Deposits, stock subject to confirmation

Other Matters

1. COVID-19 impact assessment on asset recoverability based on management's evaluation

2. Company sold entire inventory up to December 31, 2025 and conducted no business operations thereafter

3. Certain employee salary dues unpaid for more than one year - impact unascertained

Management's Response on Audit Qualifications

Management unable to reliably quantify financial impact of audit qualifications due to:

  • Matters sub-judice and contingent upon future events
  • Pending valuation of intangible assets and assessment of impairment/expected credit loss
  • Ind AS adjustments and operating segment disclosures under evaluation
  • Undetermined liability for delayed deposit/payment of statutory dues including TDS interest and penalties

No adjustments made in financial statements regarding these matters.

Auditors' Concurrence

Auditors concur with management's assessment that financial impact cannot be determined with reasonable certainty due to pending valuations, incomplete documentation, Ind AS assessments, and unresolved issues.

Financial Statements Overview

Balance Sheet (as at March 31, 2026)

  • Non-Current Assets: Rs 4,132.94 lakhs
  • Current Assets: Rs 4,116.55 lakhs
  • Shareholder's Funds: Rs 3,093.28 lakhs (Share Capital: Rs 2,729.40 lakhs, Other Equity: Rs 363.88 lakhs)
  • Non-Current Liabilities: Rs 4,277.85 lakhs
  • Current Liabilities: Rs 877.07 lakhs

Cash Flow Statement

  • Net Cash from Operating Activities: Rs 2,314.98 lakhs
  • Net Cash used in Investing Activities: Rs (2,192.31) lakhs
  • Net Cash used in Financing Activities: Rs (122.27) lakhs
  • Cash and Cash equivalents at end: Rs 0.91 lakhs