Talwalkars Auditor Disclaims Opinion on Reconstructed Q2 FY22 Results

Revenue From Operations: ₹0 for Q2 FY22, Q1 FY22, and Q2 FY21
Other Income: ₹0 for all quarters presented; ₹1.82 lakhs for FY21
Depreciation and Amortization Expenses: ₹816.05 lakhs for Q2 FY22 and Q1 FY22; ₹843.85 lakhs for Q2 FY21
Net Loss: ₹816.05 lakhs for Q2 FY22 and Q1 FY22; ₹843.85 lakhs for Q2 FY21
Earnings Per Share (Basic): (₹2.63) for Q2 FY22 and Q1 FY22; (₹2.72) for Q2 FY21
Paid-up Equity Share Capital: ₹3,100.49 lakhs with face value of ₹10 per share
Total Assets: ₹41,312.35 lakhs as of September 30, 2021 (₹42,944.45 lakhs as of March 31, 2021)

Auditor: S K Bhavsar & Co. Chartered Accountants (Firm Registration No.: 145880W)
Resolution Professional: Mr. Saurabh Kumar Tikmani
Liquidator: Mr. Gajesh Labhchand Jain
Successful Bidder: Not named in disclosure
Applicant for CIRP: Axis Bank Limited
Management: Arvind Pradhan Bhanushali (Managing Director, DIN:00134211)

Operational Status: Company's operational activities were suspended during review period
Accounting Basis: Financial results reconstructed on "best-effort basis" due to non-availability of complete books of accounts, original vouchers, and underlying servers
Asset Verification: Auditor unable to conduct physical verification of fixed assets and inventories
Liabilities Extinguished: All pre-transfer dues and liabilities permanently extinguished per NCLT order dated February 26, 2026
Capital Impact: Existing equity share capital stands cancelled pursuant to NCLT order
Fresh Start Accounting: Adopted effective from Transfer Date of November 7, 2024

Auditors disclaim any conclusion on the financial results due to pervasive scope limitations including:

Non-availability of primary books of accounts and original vouchers
Inability to verify historical balances of trade receivables, cash and bank balances, loans and advances, trade payables, borrowings, and statutory dues
Inability to evaluate financial impact of shifting bases of accounting during CIRP and liquidation phases
Inability to ascertain completeness of provisions for taxation, employee benefits, contingent liabilities, and related party transactions

Provides legal basis for regularization of past non-compliances
Extinguishes all historical liabilities
Allows reconstitution of the Board
Waives successful bidder from statutory/regulatory non-compliances occurring prior to Transfer Date
Includes protection from non-compliance penalties/fines levied by BSE and NSE for non-publication of results