Key Financial Figures

  • Net Loss for the period: ₹1,547.59 lakhs
  • Basic and Diluted EPS: (₹15.44) per share of face value ₹10 each
  • Total Assets: ₹650.68 lakhs as of 31-Mar-26 (compared to ₹4,606.47 lakhs as of 31-Mar-25)
  • Total Liabilities: ₹896.84 lakhs
  • Negative Net Worth: ₹246.16 lakhs
  • Equity Share Capital: ₹1,002.60 lakhs
  • Other Equity: Negative ₹1,248.76 lakhs
  • Cash and Cash Equivalents: ₹2.28 lakhs
  • Property, Plant and Equipment: ₹639.79 lakhs

Dates of Action

  • CIRP initiation: 25th May 2023 (order received 30th May 2023)
  • Resolution Plan approved by NCLT: 20th June 2025 (order received 30th June 2025)
  • Financial Results approved by Board: 8th July 2026
  • Auditor's Report date: 8th July 2026

Parties Involved

  • Auditor: J J Patel & Associates Chartered Accountants (FRN: 133005W)
  • Resolution Professional: Ms. Vineeta Maheshwari
  • New Management: Successful Resolution Applicant
  • Managing Director: Rashmikaben Patel (DIN: 09676511)
  • Director: Parth Patel (DIN: 09135806)
  • CFO: Jaiminkumar Sureshbhai Patel

Basis for Disclaimer of Opinion

The auditors were unable to obtain sufficient appropriate audit evidence due to:

Corporate Insolvency Resolution Process and NCLT Order

  • CIRP initiated against company on 25th May 2023
  • Ms. Vineeta Maheshwari appointed as Resolution Professional
  • Resolution Plan approved by NCLT on 20th June 2025
  • Company transferred to new management (Successful Resolution Applicant)
  • Opening balances of balance sheet items were neither recoverable from nor payable by new management

Opening Balances - Non-Verifiability

Unable to verify opening balances of:

  • Secured and unsecured borrowings (financial creditors)
  • Trade payables and sundry creditors
  • Trade receivables and sundry debtors
  • Other assets and debit balances
  • Provisions and statutory liabilities
  • Cash and cash equivalents and bank balances
  • Fixed assets and associated depreciation
  • Investments

Non-Availability of Books of Accounts and Supporting Documentation

  • Suspended management failed to provide complete records and documentation
  • Resolution Professional filed Interlocutory Application for non-cooperation
  • Expenses charged without supporting invoices, bills, vouchers
  • Unable to verify nature, authenticity, completeness, and accuracy of expenses

Claims from Financial and Operational Creditors

Claims admitted under CIRP:

  • Financial Creditors (Secured): ₹11,96,94,497 (EXIM Bank: ₹2,97,37,642; AXIS Bank: ₹8,99,56,855)
  • Financial Creditors (Unsecured): ₹69,11,005 (Tata Capital Financial Services Ltd.)
  • Operational Creditors: ₹1,92,88,281 (Government: ₹1,28,20,621; Others: ₹64,67,660)
  • Total Claims: ₹14,58,93,783

Material Uncertainty in Relation to Going Concern

  • Company has negative net worth of ₹246.16 lakhs
  • Negative net worth arose from implementation of Resolution Plan
  • Unable to obtain sufficient evidence regarding company's ability to continue as going concern

Cash and Cash Equivalents

  • Total bank balances: ₹224.85 lakhs
  • Only SBI (₹1,25,115) and ICICI (₹53,500) accounts verified
  • Axis Bank (3 accounts totaling ₹5,08,367) and HDFC Bank (₹10,564) not verified
  • Current accounts totaling ₹2,17,87,924 not verified
  • Fixed Deposits closed but no documentation provided

Property, Plant & Equipment and Depreciation

  • Carrying amount: ₹639.79 lakhs (same as previous year)
  • No depreciation recognized for the half year
  • Unable to verify existence, ownership, completeness, condition and valuation

Investments

Company holds investments in:

  • Atrevido Research and Consultants Pvt. Ltd.: 9,999 shares valued at ₹99,990
  • Majestic Research Services Asia Pte. Ltd.: 12,50,000 shares valued at ₹3,08,40,820
  • Total investments: ₹3,09,40,810 (fully written off)
  • No information, records, share certificates, or documentary evidence available

Deferred Tax Asset

  • Deferred tax asset of ₹72.56 lakhs written off during period
  • No supporting records or technical assessment available

Financial Impact

Financial impact not quantifiable in the disclosure due to:

  • Non-availability of complete details and supporting records
  • Change in management pursuant to NCLT order
  • Inability to verify opening balances and historical transactions

Capital Structure Impact

  • Equity share capital remains unchanged at ₹1,002.60 lakhs
  • Significant reduction in Other Equity from positive ₹298.84 lakhs to negative ₹1,248.76 lakhs
  • Negative net worth of ₹246.16 lakhs

Cash Flow Implications

  • Net cash used in operating activities: ₹1,174.18 lakhs
  • Net cash used in investing activities: ₹309.41 lakhs
  • Net cash used in financing activities: ₹1,710.57 lakhs
  • Net decrease in cash and cash equivalents: ₹226.98 lakhs

Exceptional Items

  • Write-off of certain opening balances of assets and liabilities recognized as Exceptional Items
  • Entire impact of ₹1,522.74 lakhs recognized under Exceptional Items
  • Loss primarily attributable to one-time effect of these accounting adjustments