Board Meeting Details

The Board of Directors meeting was held on 09 November 2026 from 4:30 PM to 5:15 PM. The Board considered and approved the unaudited financial results for quarter and half year ended 30 September 2026 along with the Limited Review Report of statutory auditors.

Financial Results Overview

Income from Operations: ₹0.00 lakh for Q2 FY27 (same previous periods)

Other Income: ₹1.02 lakh for Q2 FY27 (₹1.02 lakh in Q1 FY27, ₹1.02 lakh in Q2 FY26)

Total Income: ₹1.02 lakh for Q2 FY27 (₹1.02 lakh in Q1 FY27, ₹1.02 lakh in Q2 FY26)

Expenses:

  • Employee benefits: ₹3.62 lakh (₹2.04 lakh in Q1 FY27, ₹1.18 lakh in Q2 FY26)
  • Finance Cost: ₹0.01 lakh (₹0.00 in Q1 FY27, ₹0.00 in Q2 FY26)
  • Depreciation: ₹0.03 lakh (₹0.00 in Q1 FY27, ₹0.00 in Q2 FY26)
  • Other expenses: ₹3.50 lakh (₹3.02 lakh in Q1 FY27, ₹4.32 lakh in Q2 FY26)

Total Expenses: ₹7.56 lakh (₹5.09 lakh in Q1 FY27, ₹5.50 lakh in Q2 FY26)

Net Loss: ₹5.58 lakh for Q2 FY27 (₹4.07 lakh in Q1 FY27, ₹4.48 lakh in Q2 FY26)

Half Year Net Loss: ₹10.61 lakh (₹38.54 lakh in H1 FY26)

Earnings Per Share (Face Value ₹10):

  • Basic: -₹0.13 for Q2 FY27 (-₹0.08 in Q1 FY27, -₹0.09 in Q2 FY26)
  • Diluted: -₹0.13 for Q2 FY27 (-₹0.08 in Q1 FY27, -₹0.09 in Q2 FY26)
  • H1 FY27 EPS: -₹0.21 (H1 FY26: -₹0.77)

Balance Sheet Position (as at 30 September 2026)

Total Assets: ₹1,953.21 lakh (₹1,950.63 lakh as at 31 March 2026)

  • Non-Current Assets: ₹1,859.86 lakh (includes Other non-current assets ₹1,854.67 lakh)
  • Current Assets: ₹93.35 lakh (Cash & Cash Equivalents: ₹1.84 lakh)

Equity: Negative ₹85.57 lakh (Negative ₹74.96 lakh as at 31 March 2026)

  • Equity Share Capital: ₹500.00 lakh
  • Other Equity: Negative ₹585.57 lakh (Reserves: ₹81.58 lakh, P&L: Negative ₹867.92 lakh, Special Reserve: ₹200.77 lakh)

Liabilities: ₹2,038.78 lakh (₹2,025.59 lakh as at 31 March 2026)

  • Non-Current Liabilities: ₹2,035.15 lakh (Borrowings from Bank: ₹687.03 lakh, Loans from related parties: ₹1,328.76 lakh)
  • Current Liabilities: ₹3.63 lakh

Auditor's Adverse Qualifications

Ratan Chandak & Co LLP issued adverse opinion with following key qualifications:

1. Advances to Related Parties under ED Attachment

  • Approximately 95% of company's assets comprise advances, deposits, receivables to related parties towards property acquisition
  • Related parties under ED investigation under PMLA
  • Assets representing ~99% of company's assets attached by ED
  • Significant concerns about recoverability and valuation

2. Related Party Liabilities

  • Approximately 65% of liabilities are unsecured loans from related parties
  • Same parties have beneficial interest in properties for which advances were given
  • Creates uncertainty about completeness and accuracy of liabilities

3. Default on Bank Borrowings

  • Defaulted in repayment of borrowings from Jalgaon Peoples Co-Op. Bank Ltd.
  • Outstanding principal: ₹687.03 lakh as of February 2020
  • Loan transferred to ASREC (India) Ltd. (ARC)
  • Unprovided interest: ₹390.34 lakh + penal interest ₹52.41 lakh (01/03/2020 to 31/03/2024) = ₹442.75 lakh
  • Additional uncharged interest (01/04/2024 to 30/09/2026): ₹346.12 lakh
  • Total interest understatement: ₹788.87 lakh
  • Loss understated by ₹39.49 lakh for quarter and ₹77.45 lakh for half year

4. Recovery Proceedings Not Disclosed

  • ASREC (India) Ltd. filed OA No. 167/2026 before DRT Mumbai for recovery of ₹1,187.66 lakh
  • Tribunal restrained company from dealing with/disposing secured assets
  • Proceedings not disclosed in financial statements

5. Going Concern Uncertainty

  • No significant operational activities for over 3 years
  • Accumulated losses (net): ₹585.57 lakh as at balance sheet date
  • Net worth eroded
  • Default in borrowings repayment and unprovided interest
  • Material uncertainty about company's ability to continue as going concern

Management's Response to Qualifications

Advances to Related Parties: Management states investigation is on companies under same management control, no link with Manraj Housing Finance Limited except common management. Company cooperating with ED and submitting required documents.

Related Party Liabilities: Management states loans were extended to support company operations and liquidity, transactions undertaken transparently. Funds stuck due to tenant resistance to redevelopment and ED attachment. Company pursuing resolution through asset liquidation.

Default on Bank Borrowings: Company had entered into OTS with ASREC which was revoked due to non-fulfilment. Given ongoing ED proceedings, company has not recognized accrued interest due to uncertainty. Confident of resolving through renewed OTS once legal situation stabilizes.

Recovery Proceedings: Matter is reported in Note 24.10 in Notes to Financial Statements. Company contesting claims before Tribunal and engaging in negotiations for amicable resolution. Exact financial impact cannot be ascertained pending Tribunal determination.

Going Concern: Management believes financial position is temporary and remediable. Company holds significant real estate assets expected to absorb losses once liquidated post-resolution of legal impediments.

Impact of Qualifications on Financials

As per statement on impact of qualifications:

  • Total Income: No change (₹2.04 lakh)
  • Total Expenditure: Increased from ₹12.65 lakh to ₹90.10 lakh
  • Net Loss: Increased from ₹10.61 lakh to ₹88.06 lakh
  • EPS: Worsened from -₹0.21 to -₹1.76
  • Total Assets: No change (₹1,953.21 lakh)
  • Total Liabilities: Increased from ₹2,038.78 lakh to ₹2,827.66 lakh
  • Net Worth: Worsened from negative ₹85.57 lakh to negative ₹874.45 lakh

Cash Flow Statement (H1 FY27)

  • Net Cash Flow from Operating Activities: Negative ₹10.45 lakh
  • Net Cash Flow from Investing Activities: Not quantified
  • Net Cash Flow from Financing Activities: ₹11.13 lakh (Borrowings from directors/relatives)
  • Net Change in Cash: ₹0.68 lakh
  • Closing Cash: ₹1.84 lakh