1. Considered and approved the Standalone Audited Financial Results of the Company for the Quarter and Financial Year ended on 31st March, 2026. 2. Considered the Independent Auditor's ....
Awaiting price reaction for this filing.
The company reported a massive revenue collapse to Rs 0.08 lakh for FY2026 from Rs 13.70 lakh in the previous year. It posted a net loss of Rs 78.89 lakh for the year, though this is an improvement from the Rs 84.82 lakh loss in FY2025. The balance sheet shows severe distress with negative net worth of Rs 217.67 lakh as accumulated losses have fully eroded shareholder equity. The statutory auditor Gorantla & Co issued an unmodified opinion but explicitly drew attention to Note No. 4, stating that accumulated losses fully erode net worth and indicate material uncertainty about the company's ability to continue as a going concern. Management claims new software development under progress will generate sufficient cash flows, but acknowledges the outcome is uncertain.
The company is in financial distress with negative equity and collapsing revenues. Despite the unmodified audit opinion, the auditor's emphasis of matter on going concern is a serious red flag for investors. The stock faces high risk if the new software development fails to generate expected cash flows.