Audit Opinion Details

The statutory auditors, GRV & PK Chartered Accountants, issued a qualified opinion on the standalone financial results dated May 27, 2026. The audit was conducted in accordance with Standards on Auditing specified under section 143(10) of the Companies Act, 2013.

Basis for Qualified Opinion

The primary qualification relates to non-provision for bad debt of Rs 97.57 lakhs (previous year Rs 97.57 lakhs) for debtor Maiyas Beverage and Foods Private Limited. This debtor was referred to NCLT under Indian Bankruptcy Code, and NCLT passed an order on May 10, 2019, stating only 15.14% amount is payable to all sundry creditors. The company's total outstanding against Maiyas Beverage at the time of NCLT referral stood at Rs 114.97 lakhs (PY Rs 114.97 lakhs). This non-provision overstates company's profit and sundry debtors by Rs 97.57 lakhs.

Emphasis of Matter

Auditors highlighted two emphasis matters:

  • Debtors outstanding for more than 1 year: Rs 88.90 lakhs (including disputed debtors of Rs 66.52 lakhs); more than 2 years: Rs 9.61 lakhs; more than 3 years: Rs 377.23 lakhs (including disputed debtors of Rs 162.95 lakhs) - total aged debtors of Rs 475.74 lakhs without any provision for bad debt, as company is confident of recovery.
  • High packing material inventory of Rs 1016.85 lakhs (PY Rs 1076.03 lakhs) compared to annual consumption of Rs 271.41 lakhs (PY Rs 278.09 lakhs).

The audit opinion is not modified for these emphasis matters.

Financial Results Overview

For the year ended March 31, 2026:

  • Total Income: Rs 19,772.26 lakhs
  • Total Expenses: Rs 19,710.01 lakhs
  • Profit before tax: Rs 52.05 lakhs (compared to loss of Rs 144.22 lakhs in PY)
  • Net Profit after tax: Rs 39.71 lakhs (compared to loss of Rs 109.43 lakhs in PY)
  • Earnings Per Share: Rs 1.32 (compared to negative Rs 3.64 in PY)
  • Paid-up Equity Share Capital: Rs 300.29 lakhs (face value Rs 10 each)
  • Other Equity: Rs 1,331.59 lakhs

For the quarter ended March 31, 2026:

  • Net Profit after tax: Rs 21.98 lakhs
  • EPS: Rs 0.73

Exceptional Items

The company recorded an exceptional item of Rs 10.20 lakhs related to "Impact of Labour Codes" due to enactment of new labor legislation, which increased gratuity and leave liability.

Balance Sheet Position (as at March 31, 2026)

  • Total Assets: Rs 9,778.38 lakhs
  • Total Liabilities: Rs 9,778.38 lakhs
  • Shareholders' Funds: Rs 1,631.88 lakhs
  • Non-current liabilities: Rs 154.56 lakhs
  • Current liabilities: Rs 7,991.94 lakhs

Cash Flow Statement

  • Net cash flow from operating activities: negative Rs 465.15 lakhs
  • Net cash flow from investing activities: negative Rs 12.68 lakhs
  • Net cash flow from financing activities: Rs 462.78 lakhs
  • Cash and cash equivalents at year-end: Rs 30.87 lakhs

Management's Response to Qualification

Management stated that certain creditors of Maiyas Beverages have preferred appeals against the NCLT order dated May 10, 2019, which have been admitted by the National Company Law Appellate Tribunal, New Delhi. Since the order has not been implemented, the company deemed it fit not to make any provisions.