Please find enclosed file.
Awaiting price reaction for this filing.
Muzali Arts Ltd reported a profit after tax of Rs. 48.25 Lakhs for FY 2026, a significant turnaround from a loss of Rs. 293.72 Lakhs in FY 2025. Revenue from operations was Rs. 45.87 Lakhs (up from nil), while other income declined slightly to Rs. 41.37 Lakhs from Rs. 46.32 Lakhs. The company stated it has had no active operations since October 2022. The auditor issued an unmodified (clean) opinion. The company also disclosed a prior period error regarding its 80% stake in Jalan & Jalan Collection Inc., which was erroneously classified as a subsidiary but is now being accounted for as a financial instrument. Operating cash flow turned negative at Rs. 39.96 Lakhs compared to positive Rs. 122.83 Lakhs in the prior year.
The company returned to profitability on a standalone basis, but the lack of active operations since 2022 and negative operating cash flow raise concerns about business sustainability. The clean audit opinion may mask underlying going concern risks given the company has essentially become dormant.