Audit Opinion Details

Sagar & Associates, Chartered Accountants (FRN: 003510S) issued a qualified opinion on the financial results. The audit was conducted in accordance with Standards on Auditing specified under Section 143(10) of Companies Act, 2013.

Basis for Qualified Opinion

1. Sundry Debtors

  • Rs. 274.83 lakhs outstanding for period exceeding three years
  • Provision of Rs. 219.26 lakhs made in earlier years as expected credit loss
  • Net receivables outstanding: Rs. 55.57 lakhs
  • No provision made during current quarter or previous year
  • Auditors recommend additional Expected Credit Loss provision
  • Unable to comment on recoverability due to lack of confirmation and long outstanding period

2. Closing Stock

  • Rs. 158.06 lakhs of inventory not moving for more than two years
  • Net Realisable Value not determined by company
  • Unable to comment on appropriateness of inventory valuation

3. Sundry Creditors

  • Rs. 364.33 lakhs outstanding for period exceeding three years
  • No confirmation received from creditors
  • Unable to determine impact on financial statements

4. Other Current Assets (Rs. 429.75 lakhs)

  • Rs. 419.25 lakhs transferred to Ikon Associates (related party) as advance
  • Nature of transaction and terms & conditions not available on record
  • Rs. 10.50 lakhs receivable from Gopinath Enterprise Private Limited towards sale
  • Terms of receipt not on record

5. Bank Accounts

  • Rs. 1.58 lakhs closing balance across seven bank accounts
  • Only one bank statement provided for verification (Rs. 0.20 lakhs)
  • Remaining six bank statements or confirmations not provided for Rs. 1.38 lakhs

6. Fixed Deposits

  • Rs. 14.30 lakhs outstanding balance with City Bank
  • No confirmation received from the bank
  • Unable to determine impact on financial statements

7. Other Financial Assets

  • Rs. 87.78 lakhs long outstanding balance comprising EMDs and Tender deposits
  • No provision provided

8. Going Concern

  • Company has accumulated losses and net worth fully eroded
  • Incurred net loss/net cash loss during current quarter and previous years
  • Current liabilities exceeded current assets as at review date
  • Material uncertainty exists about company's ability to continue as going concern

Financial Results Summary (Rs. in Lakhs)

Statement of Assets and Liabilities as at 31-Mar-2026

  • Total Assets: 916.64
  • Total Liabilities: 916.64
  • Equity Share Capital: 692.64
  • Other Equity: -856.28 (negative)
  • Net Worth: -163.65 (negative)
  • Non-current Assets: 145.05
  • Current Assets: 771.60
  • Inventories: 158.06
  • Trade receivables: 136.19
  • Cash and cash equivalent: 19.34
  • Other financial assets: 188.00
  • Other current assets: 450.23
  • Non-current Liabilities: 3.66
  • Current Liabilities: 1,076.63
  • Borrowings: 541.19
  • Trade payables: 396.93
  • Other financial liabilities: 0.71
  • Provisions: 55.00
  • Other current liabilities: 30.87

Statement of Cash Flows for Year Ended 31-Mar-2026

  • Net profit before tax: (3.20)
  • Net Cash from operating activities: Not quantified in disclosure
  • Net Cash used in Investing Activities: Not quantified in disclosure
  • Net Cash used in Financing Activities: Not quantified in disclosure

Management's Response to Qualifications

Sundry Debtors (Rs. 55.57 lakhs net)

  • Claims amount belongs to Madhya Pradesh Government
  • Pursuing with Horticulture department
  • Expects settlement within 6 months
  • Pursuing matter with concerned parties for balance receivables

Closing Stock (Rs. 158.06 lakhs)

  • Describes as "dead stock"
  • Slowly selling out with loss
  • Expects to close as early as possible

Sundry Creditors (Rs. 364.33 lakhs)

  • Will be settled within 6 months

Other Current Assets

  • Claims company entered into business contract with said parties

Bank Accounts (Rs. 1.38 lakhs unverified)

  • Claims six bank accounts closed long back
  • Cannot get bank statements as no transactions with those banks
  • Only one bank account in operation

Fixed Deposits (Rs. 14.30 lakhs)

  • Fixed deposit with City Co-operative Bank
  • Loan taken by company already cleared
  • Bank kept fixed deposit on hold
  • Bank not responding when approached
  • Proposes to sort out issues and clear fixed deposit during current financial year

Other Financial Assets (Rs. 87.78 lakhs)

  • Amounts pertain to Government departments
  • Pursuing matter with concerned departments
  • Expecting to realize most during current financial year
  • No provision made as amounts considered realizable

Going Concern

  • Attributes decline to reduced demand for HDPE Tarpaulins and HDPE Geo membrane Sheets after Covid-19
  • Change in government schemes affected functioning
  • Management taking steps to improve performance in government tenders
  • Expects considerable improvement and positive trend