Pursuant to Regulation 30 and Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ('SEBI LODR'), we hereby inform ....
Awaiting price reaction for this filing.
The Board of Muzali Arts approved its unaudited Q3 FY26 and nine-month FY26 results. Revenue from operations is nil – the company's entire income of Rs 30.48 lakhs for 9M FY26 (vs Rs 36.47 lakhs in 9M FY25) is classified as "other income", and the company has had no active operations since October 2022. The company swung from a loss of Rs 278.37 lakhs in 9M FY25 to a profit of Rs 24.45 lakhs in 9M FY26, helped by sharply lower expenses (Rs 13.89 lakhs vs Rs 305.73 lakhs) and a prior-period tax credit. The statutory auditor issued a modified review report, flagging that the company appears to qualify as an NBFC (over 50% of income from interest on loans, over 50% of assets are financial assets) but has not obtained RBI registration and has not followed NBFC prudential norms. The auditor also could not verify Rs 6.62 crore of loans and advances through balance confirmations. The investment in Jalan & Jalan Collection Inc. (earlier treated as subsidiary) has been written down to zero, with the company concluding it never had control.
Multiple red flags for shareholders – modified audit opinion, apparent NBFC activity without RBI registration (regulatory risk), nil operating revenue, and unverified large loans on the balance sheet. Investors should treat this as a high-risk, thinly-traded micro-cap with serious governance and disclosure concerns.