Statutory Auditors M/s. MNS & Co., appointed by the Comptroller and Auditor General of India (CAG), had termed the company 'not an ongoing concern' during the Statutory Audit of draft Annual Accounts for FY 2014-15.
This status was in addition to the company's declared 'sick' status by BIFR in case No. 601/2012.
The auditors demanded a 'Letter of Comfort' from the Government of Karnataka, being a major stakeholder.
After prolonged deliberations, the draft annual accounts for FY 2014-15 were signed by the auditors with a disclaimer 'Not an ongoing Concern' by end of 2021.
The supplementary audit by CAG was completed, and the 80th AGM for FY 2014-15 was held on 29th December 2021, with the Annual Report filed with BSE thereafter.
Subsequent Accounting Difficulties
Preparation of accounts for subsequent financial years faced difficulties due to lack of certified opening balance by new auditors.
Preparation and finalization of Annual Accounts for FY 2015-16, 2016-17, and 2017-18 were undertaken through external financial consultants M/s. Manian & Rao, Bengaluru.
Statutory Auditors for these three years, M/s. Vasan & Sampath LLP (appointed by CAG), conducted simultaneous auditing.
Statutory Audit for FY 2015-16 was recently completed, with the Audit Report submitted to the Principal Accountant General Office, Karnataka, Bengaluru.
Supplementary Audit was conducted, and a 'Nil Comments Certificate' was issued.
The 81st Annual General Meeting for FY 2015-16 was held on 29th November 2025 in virtual mode, with related e-filings completed.
Operational Status and Staffing Issues
Company operations stopped in 2015-16 due to huge losses incurred since 2009.
Operations were formally closed during October 2021 as per approval from the Competent Authority of the Government of Karnataka.
Since 2017, company operations are restricted to forest plantation activities only.
The earlier Chief Finance Officer (CFO) succumbed to COVID-19 during the first wave, causing post-pandemic disruptions.
The CFO position has remained vacant since then.
Current Status of Q1 FY2026-27 Results
Provisional Un-audited Financial Results for the quarter ended June 2026 are under preparation through external agency M/s. Manian & Rao, Chartered Accountants & Financial Consultants.
The company will submit the results to BSE Limited as expeditiously as possible after they are ready and approved by the Board of Directors at an upcoming meeting convened for this purpose.
