The Board, inter alia, considered and approved the following: i. The Audited Standalone Financial Statements of the Company for the financial year ended 31st March, 2026 (enclosed herewith); ii. ....
Awaiting price reaction for this filing.
Muzali Arts Ltd reported return to profitability with profit after tax of Rs. 48.25 lakhs for FY 2025-26, compared to a loss of Rs. 293.72 lakhs in the previous year. Total income increased to Rs. 87.24 lakhs from Rs. 46.32 lakhs, including revenue from operations of Rs. 45.87 lakhs (first time since prior year had zero revenue). However, the company disclosed it has had no active operations since October 2022. Significant related party transactions exist with loans of Rs. 649.50 lakhs given to related parties. The auditor gave an unmodified opinion. The company also corrected a prior period error regarding its investment in Jalan & Jalan Collection Inc., which was incorrectly classified as a subsidiary.
The company returned to nominal profitability from heavy losses, but investors should note the company has no active operations since October 2022 and has substantial related party loans. The negative operating cash flow of Rs. 39.96 lakhs raises concerns about cash management despite reported profitability.