Financial Analyst Summary

Company Response to Regulatory Query

Date of Communication: 19th June, 2026

Nature of Query: The National Stock Exchange of India Limited raised a query regarding deficiency observed in the submission of Outcome of Board Meeting: Financial Results dated 19th May, 2026. Specifically, the declaration by Managing Director and CFO as required under Regulation 33(3)(d) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, was missing from the initial filing.

Company's Clarification: The company stated that the omission was inadvertent and due to unintentional oversight during the submission process. The company emphasized this was procedural in nature with no intention to delay, suppress, or withhold any information. The required declaration was subsequently prepared and submitted to the Exchange.

Financial Results Clarification

The audited financial results for year ended 31st March, 2026 show:

Income Statement Highlights (₹ in Lakhs):

  • Total Income: ₹0.00 (no revenue from operations)
  • Total Expenses: ₹22.64
  • Employee Benefit Expenses: ₹2.40
  • Other Expenses: ₹20.24
  • Net Loss: ₹22.64
  • Basic and Diluted EPS: ₹(0.25)

Balance Sheet Position (as at 31st March, 2026):

  • Total Assets: ₹1,496.42 lakhs (vs ₹850.77 lakhs previous year)
  • Property, Plant & Equipment: ₹710.18 lakhs (vs ₹70.58 lakhs previous year)
  • Equity Share Capital: ₹900.00 lakhs
  • Other Equity: ₹(579.89) lakhs
  • Financial Liabilities: ₹1,013.16 lakhs
  • Deferred Tax Liability: ₹161.82 lakhs

Key Development - Asset Revaluation:

The auditors highlighted in their Emphasis of Matter that the company revalued leasehold industrial land and factory building during the year based on an independent valuer's report. This resulted in:

  • Revaluation Surplus of Assets: ₹642.92 lakhs
  • Related deferred tax liability: ₹161.82 lakhs
  • Net other comprehensive income: ₹481.10 lakhs
  • Total comprehensive income for the year: ₹458.46 lakhs

Cash Flow Analysis:

  • Net cash flow from operating activities: ₹(25.90) lakhs
  • Net cash flow from investing activities: ₹(0.56) lakhs
  • Net cash flow from financing activities: ₹26.41 lakhs
  • Net decrease in cash: ₹(0.05) lakhs
  • Cash balance as at 31st March, 2026: ₹3.58 lakhs

Auditor Opinion:

Rajesh Laxmi & Associates, Chartered Accountants (FRN: 012203N) issued an unmodified and unqualified audit opinion on the standalone audited financial results for the financial year ended 31st March, 2026.

Topic Tags: Regulatory Response, Financial Results Clarification, Compliance, Asset Revaluation, SEBI Regulations