Financial Figures (Standalone for FY Ended March 31, 2026)

The Statement on Impact of Audit Qualifications presented the following financial figures (in ₹ lakh, except EPS):

  • Turnover/Total Income: ₹0 (both as reported and adjusted)
  • Total Expenditure: ₹115.12 (both as reported and adjusted)
  • Net Profit/(Loss): ₹-0.64 (both as reported and adjusted)
  • Earnings Per Share: ₹-0.02 (both as reported and adjusted)
  • Total Assets: ₹688.22 (both as reported and adjusted)
  • Total Liabilities: ₹1,240.98 (both as reported and adjusted)
  • Net Worth: ₹-555.75 (as reported), ₹-552.75 (adjusted)
  • Other Financial Items: ₹0 (both as reported and adjusted)

Audit Qualifications Details

The statutory auditors issued an adverse audit opinion with six major qualifications:

1. Matters Related to Going Concern

  • The company's net worth has been fully eroded due to continuous losses incurred over years
  • No business operations conducted since last several years
  • Current liabilities substantially exceed current assets, indicating significant financial stress
  • Manufacturing unit at Silvassa along with movable assets, immovable assets and inventories were under possession/control of Canara Bank
  • Credit facilities classified as Non-Performing Assets (NPA) by lenders
  • Legal proceedings between Bank and guarantors before Debt Recovery Tribunal (DRT) are still pending
  • Material uncertainty exists regarding company's ability to continue as going concern

2. Inventory of Raw Material & Finished Goods

  • Inventory was lying at Silvassa manufacturing unit under Bank's possession pursuant to SARFAESI proceedings
  • Management accounted for takeover and sale of inventories through e-auction
  • Company allocated 76% of total sale consideration towards inventories and 24% towards fixed assets
  • Inventory balance reduced to Nil as company no longer has control
  • Complete supporting documents including valuation reports and basis of allocation not available for verification

3. Property, Plant and Equipments (PPE)

  • Immovable and movable fixed assets at Silvassa under Bank's possession pursuant to SARFAESI proceedings
  • Management accounted for sale of assets through e-auction proceedings
  • Company allocated 24% of total sale consideration towards fixed assets and 76% towards inventories
  • Related PPE derecognized from books of account
  • Complete supporting documents including valuation reports not available for verification
  • Consequential impact on financial statements not ascertainable

4. Write-off/Write-back of Debit, Credit Balances and Other Balances

  • Company wrote off/wrote back various old debit balances, credit balances, trade receivables, trade payables, loans, advances and other assets/liabilities
  • Based on management assessment and Board approval dated March 31, 2026
  • Adequate supporting documents, external confirmations and corroborative evidences not available for verification

5. Balance Confirmations

  • Company did not obtain balance confirmations/reconciliations from trade receivables, trade payables, lenders, loans and advances, other receivables, other payables and certain other balances
  • Unable to verify correctness, completeness and recoverability/payability of such balances
  • Impact on financial statements not ascertainable

6. Bank Account

  • Bank accounts were inoperative during the year due to pending KYC compliance formalities
  • Certain expenses and payments incurred by directors through personal sources for meeting statutory requirements
  • Unable to verify completeness, authenticity of transactions routed through personal accounts of directors

Asset Sale Details

  • Canara Bank sold company properties through e-auction for aggregate consideration of approximately ₹49.07 lakh
  • Sale proceeds adjusted against outstanding dues of the Bank
  • Properties sold under proceedings initiated pursuant to SARFAESI Act, 2002
  • Based on Board Resolution dated March 31, 2026 and intimation to BSE under Regulation 30
  • Complete supporting documents relating to sale proceedings, appropriation of sale proceeds, and statement of loan adjustment not available

Audit Opinion Type and Frequency

  • Type of Opinion: Adverse Opinion
  • Frequency: Repetitive qualifications
  • The auditors stated that audit evidence obtained is not sufficient and appropriate to provide a basis for their adverse opinion

Management and Auditor Signatories

Company Representative: Mahendra Kumar Bothra, Managing Director (DIN: 01103297)

Statutory Auditor: PAMS & Associates