The Company acquired control over its subsidiary effective 1st October 2025
Consolidated financial statements were prepared by consolidating subsidiary financial information from 1st October 2025 to 31st March 2026
Pursuant to BSE observation, only the column heading in the Consolidated Statement of Profit and Loss was revised to reflect "period ended 31st March 2026" instead of "period from 1st October 2025 to 31st March 2026"
No changes were made to figures, notes, disclosures, or any other part of the Consolidated Financial Results
Standalone Financial Results submitted on 25th May 2026 remain unchanged
Auditor's Opinion
Independent Auditor SBMG & Co. LLP issued an unmodified opinion on the Consolidated Financial Statements
Audit conducted in accordance with Standards on Auditing specified under Section 143(10) of Companies Act, 2013
Financial statements give true and fair view in conformity with Accounting Standards prescribed under Section 133 of the Act
Emphasis of Matter Points
Subsidiary and Associate Accounting
Consolidated Financial Statements prepared based on provisional/unaudited financial statements of Suvarna Enterprise (Subsidiary) and Suvarna Spinning Private Limited (Associate)
Sunrise Efficient Marketing initially entered partnership with Suvarna Enterprise on 21 April 2025 with 55% profit-sharing ratio but without control
Supplementary partnership deed executed on 18 November 2025 vested control with retrospective effect from 1st October 2025
Goodwill of ₹106.15 lakh and Non-Controlling Interest of (₹151.65 lakh) recognized on consolidation
Investment in Suvarna Spinning Private Limited: Acquired 3,000 equity shares (face value ₹10 each) aggregating ₹30,000 on 14 February 2026, resulting in 30% holding
Associate incurred net loss of ₹8,43,720.08, with proportionate share of ₹2,53,116.02 attributable to holding company
Recognized share of loss limited to carrying amount of investment (₹30,000), reducing carrying value to NIL
Unrecognized share of loss: ₹2,23,116.02
Preferential Warrant Allotment and Conversion
Special resolution passed by members on 20th December 2024 under SEBI (ICDR) Regulations 2018
Board approved allotment of 51,38,000 convertible warrants at issue price of ₹106 each on preferential basis on 15th January 2025
Received 25% upfront subscription money of ₹13,61,57,000
During FY 2025-26, 41,60,000 warrants converted into equity shares in three phases:
10th April 2025: 6,65,000 warrants converted
27th May 2025: 33,48,000 warrants converted
10th June 2025: 1,47,000 warrants converted
Received balance 75% subscription money against converted warrants
As at 31st March 2026: 9,78,000 convertible warrants outstanding
Upfront amount against outstanding warrants: ₹349.40 lakh disclosed under "Money Received Against Share Warrants"
Reliance on Other Work
Relied on internal audit work by M/s. Rachna Patel & Associates (internal audit report issued 6th May 2026)
Relied on actuarial valuation report by Kapadia Global Actuaries (dated 12th May 2026) for gratuity liability determination
Current portion of gratuity disclosed under "Short Term Provisions", balance under "Long Term Provisions"
Loans and Advances
Short-term loans and advances to various entities: ₹16,16,21,031 outstanding as at 31st March 2026
Interest charged in accordance with Companies Act 2013
For Kothari Syntex Mills and Pramukh Organisers LLP: Only interest amounts outstanding since beginning of year, no additional interest charged on outstanding interest balances
Short-term funds provided to directors for business development: Unutilized amounts returned, cheques aggregating ₹8,50,000 pending clearance
Advance to enterprise where director has substantial interest: ₹40,22,163 returned via cheque on 31st March 2026 but pending clearance
Loan of ₹10,00,000 to Moduco Private Limited on 2nd September 2025 converted to equity on 22nd January 2026 (8 equity shares of face value ₹10 each, 0.08% holding)
Inventory Management
No item-wise quantitative records maintained
Valuation and quantity based on physical verification and management certification
Monthly physical verification and valuation for bank stock statements
No independent third-party valuation conducted
Difference of ₹75 lakh between stock value reported to bank (₹2,575.26 lakh) and books (₹2,500.26 lakh)
Difference attributed to:
Bank reporting at estimated sales value/market realizable value vs. books at cost
Delayed recording of purchase invoices affecting book value
Statutory Dues
Professional Tax payable as at 31st March 2025: ₹4,28,504
Only ₹7,871 paid up to audit report date
Professional Tax deducted during FY 2025-26: ₹1,98,871 remained unpaid
Employee Advances
Advances to employees: ₹45,61,807
₹3,08,147 pertains to employees who resigned/left during earlier periods, still outstanding
Financial Highlights (Consolidated)
Balance Sheet as at 31st March 2026
Share Capital: ₹1,916.00 lakh
Non-Controlling Interest: (₹151.65 lakh)
Reserves and Surplus: ₹8,492.95 lakh
Money received against share warrants: ₹349.40 lakh
