Historical Context and Reasons for Delay

The delay stems from longstanding accounting and operational issues:

  • Statutory Auditors M/s. MNS & Co., appointed by the Comptroller and Auditor General of India (CAG), had declared the company 'not an ongoing concern' during the statutory audit of FY2014-15 accounts, in addition to the company's 'sick' status declared by BIFR in case No. 601/2012.
  • The auditors initially refused to sign the FY2014-15 annual accounts without a 'Letter of Comfort' from the Government of Karnataka. After deliberations, the accounts were eventually signed with a disclaimer 'Not an ongoing Concern' by end of 2021.
  • The 80th AGM for FY2014-15 was held on 29th December 2021, and the annual report was filed with BSE thereafter.
  • These events created accounting difficulties for subsequent financial years without certified opening balances from new auditors.

Current Status of Financial Reporting

  • External financial consultants M/s. Manian & Rao, Bengaluru were engaged to prepare accounts for FY2015-16, 2016-17, and 2017-18.
  • Statutory Auditors M/s. Vasan & Sampath LLP (appointed by CAG) completed audit of FY2015-16 accounts, which received 'Nil Comments Certificate' from the Principal Accountant General Office, Karnataka after supplementary audit.
  • The 81st Annual General Meeting for FY2015-16 was held on 29th November 2025 in virtual mode, with related e-filings completed.
  • Audit of FY2016-17 accounts is in final stages.

Operational Status

The Company stopped operational activities since 2015-16 due to huge losses incurred since 2009. Operations were formally closed during October 2021 with approval from Government of Karnataka competent authority. Current operations are restricted to forest plantation activities from 2017 onwards.

Specific Reasons for Q2 FY2027 Delay

  • Sudden demise of the Chief Finance Officer (CFO) during the first wave of COVID-19
  • Consequential disruptions post-pandemic
  • Non-filling of the CFO position since then
  • Reliance on external agency M/s. Manian & Rao, Chartered Accountants & Financial Consultants for preparation of quarterly results

Forward Plan

The provisional Un-audited Financial Results for Q2 ended September 2026 are under preparation through M/s. Manian & Rao. The Company will submit the results to BSE Limited expeditiously once ready and approved by the Board of Directors at an upcoming meeting convened for this purpose.