Aditya Forge Limited reported zero revenue from operations for the financial year ended March 31, 2026 (FY26), marking a sharp decline from the previous year’s activity. Despite the absence of operational income, the company posted a net profit after tax (PAT) of ₹13.05 lakh, compared to a profit of ₹699.34 lakh in FY25.

The profitability in FY26 was primarily driven by a tax benefit rather than operational performance. The company recorded a loss before tax of ₹9.97 lakh, which turned into a profit due to a tax expense credit of ₹23.02 lakh. This credit arose from the adjustment of tax relating to earlier years, specifically the reversal of excess provision created in the prior financial year.

Financial Performance

The company’s total income stood at nil in FY26, down from ₹1,358.82 lakh in FY25. The previous year’s income included ₹1,032.76 lakh from other sources, largely comprising a gain on the sale of assets.

Operating expenditure decreased significantly to ₹9.49 lakh in FY26 from ₹585.00 lakh in FY25, reflecting the halt in core business activities. Finance costs were minimal at ₹0.48 lakh, compared to ₹1.19 lakh in the previous year.

Balance Sheet and Cash Position

As of March 31, 2026, the company’s cash and cash equivalents dropped to ₹0.53 lakh from ₹36.92 lakh a year earlier. Total assets declined to ₹138.62 lakh from ₹227.03 lakh.

The company holds no fixed assets or inventory as of the reporting date. Non-current assets include ₹32.29 lakh in advances paid to suppliers. Liabilities include ₹372.00 lakh in long-term borrowings and ₹99.84 lakh in trade payables. Contingent liabilities related to income tax demands stand at ₹102.77 lakh, up from ₹35.69 lakh in FY25.

Corporate Developments

The Board of Directors has proposed shifting the company’s registered office from Vadodara to Ahmedabad. This move requires shareholder approval via a special resolution at the upcoming Annual General Meeting (AGM). The change remains within the jurisdiction of the Registrar of Companies (ROC) Ahmedabad.

The 33rd AGM is scheduled for September 30, 2026. Other key agenda items include:

• Re-appointment of Managing Director Nitin Rasiklal Parekh, who retires by rotation.
• Appointment of Mrs. Ruta Rohankumar Soni as a Non-Executive Professional Director.
• Adoption of the audited financial statements for FY26.

Auditor Observations

Statutory auditors M A A K & Associates issued a qualified opinion on the financial statements. They noted that balance confirmations for trade payables, loans, and receivables were not provided, preventing verification of these balances. Additionally, the auditors highlighted uncertainties regarding an income tax notice, for which no provision has been made in the financial statements.

The secretarial audit report flagged several compliance delays, including late filing of certain SEBI disclosures and ROC forms. The company also had not appointed an internal auditor during the year under review.

Aditya Forge Limited reported a net profit of ₹13.05 lakh for the financial year ended March 31, 2026, a sharp decline of 98% from ₹699.34 lakh in the previous year, as the company recorded zero revenue from operations. The Board of Directors approved the audited standalone financial results on May 25, 2026. The company's total expenses for FY26 fell to ₹9.97 lakh from ₹586.36 lakh in FY25, driven primarily by a reduction in other expenses. Despite the profit, the company's net worth remained negative at ₹341.39 lakh, with negative reserves widening to ₹772.25 lakh from ₹785.31 lakh in the prior year.

The financial position shows total assets decreasing to ₹138.62 lakh as of March 31, 2026, from ₹227.03 lakh a year earlier. Cash and cash equivalents dropped significantly to ₹0.53 lakh from ₹36.92 lakh, while trade payables increased to ₹99.84 lakh from ₹73.08 lakh. For the quarter ended March 31, 2026, the company reported a net profit of ₹21.15 lakh, compared to a net loss of ₹106.59 lakh in the same quarter of the previous year. The quarterly profit was aided by a reversal of excess tax provision of earlier years amounting to ₹23.02 lakh.

Audit Qualifications and Compliance

Statutory auditors M A A K & Associates issued a qualified opinion on the financial results. The auditors stated they were not provided with balance confirmations or details for trade payables, loans, and advances receivable or payable shown in the books of accounts. Consequently, they were unable to confirm the balance and nature of these transactions. The auditors noted this is a repetitive qualification and recommended that the Board and Audit Committee prioritize establishing a formal process for periodic balance confirmations.

The company's management asserted that balance confirmations are pending due to procedural delays and claimed the matter would not affect the financials. However, the auditors disagreed, stating they could not concur with this assertion and warned that any misstatement in these balances could have a material impact on the financial position. The audit report also highlighted uncertainties relating to an income tax notice received by the company, for which no provision has been made.

Financial Performance Summary

The following table outlines the key financial metrics for Aditya Forge Limited for the financial year ended March 31, 2026, compared to the previous year: