Starlit Power Systems Limited (formerly KDG Properties & Construction Private Limited) reported significant financial deterioration and governance challenges for FY 2025-26. The company posted a standalone net loss of ₹1742.58 lakhs, dramatically worsening from the ₹66.23 lakhs loss in the previous year, with operating expenses surging to ₹1785.37 lakhs from ₹112.17 lakhs.
Financial Reporting & Audit Issues:
Statutory auditors V R S K & Associates issued a qualified opinion citing multiple concerns: non-provision of interest on loans, non-compliance with IND-AS accounting standards, questionable valuation of unquoted investments, and potential requirement for RBI registration for lending activities. The financial statements showed investments of ₹91,715.98 lakhs primarily in quoted securities, with cash equivalents of only ₹38.00 lakhs.
Governance & Compliance Failures:
Secretarial audit by Babita & Associates revealed severe SEBI LODR non-compliances including deficient board composition requiring an additional independent director, untimely appointments of Managing Director and CFO, and financial statements for FY 2024-25 not signed by required officials. Independent directors Bhoomi Girish Bhadra and Sanjay Tulsidas Bhanushali lacked mandatory validity certificates and proficiency test clearances. Notably, 11 charges remained open on MCA despite nil borrowings reported in the balance sheet.
Board & Management Changes:
Significant board turnover occurred with multiple resignations (Rinkal, Komal, Shiv Narayan, Nikita) and appointments (Divyesh Kishor Bhanushali, Bhoomi Girish Bhadra, Durga Yadav, Sanjay Tulsidas Bhanushali, Babita Jain, Nisha Yadav). Key AGM resolutions include re-appointment of director Pankaj Saxena and regularization of Babita Jain as Executive Director, scheduled for September 26, 2026 via video conference.
Regulatory History:
The company faced a BSE penalty on June 27, 2025 for delayed quarterly results submission and has an income tax demand of ₹6,429 for AY 2023-24. Shareholding pattern shows minimal promoter holding (0.04%) with 99.96% public ownership.
Operational Details:
No trading occurred during FY26, no micro enterprise dues, no crypto currency transactions, and no material related party transactions. The company operates in financial services including loans against shares and corporate loans, with 79.36% of share capital in dematerialized form.