Ajel Limited’s statutory auditors issued a disclaimer of opinion on the financial statements for FY26, citing significant doubts about the company’s going concern status and inability to verify key balances.

The IT services firm reported a consolidated net loss of ₹43.98 lakh for the year ended March 31, 2026, a sharp improvement from the ₹165.95 lakh loss in FY25. However, the standalone entity recorded a net loss of ₹82.79 lakh, compared to ₹136.52 lakh in the previous year.

Auditor Concerns

The audit report by GMK & Co LLP highlighted several material weaknesses that prevented the formation of an opinion:

• A ₹5 crore loan from Bank of Maharashtra was declared a Non-Performing Asset (NPA) on October 8, 2024, due to non-repayment of principal and interest.
• The auditors could not verify trade payables, receivables, or listed equity investments worth ₹91.22 lakh.
• An unsecured loan of ₹85.96 lakh advanced to other parties remains unrecovered, with no clarity on recoverability.

Financial Performance

Despite the operational losses, the group’s revenue remained relatively stable. Consolidated revenue from operations stood at ₹1,366.57 lakh, marginally up from ₹1,364.38 lakh in FY25. Standalone revenue rose slightly to ₹396.83 lakh from ₹388.51 lakh.

Other income contributed significantly to the bottom line, rising to ₹32.86 lakh from ₹22.69 lakh in the prior year. This increase helped offset operating expenses, which totaled ₹1,443.72 lakh on a consolidated basis, down from ₹1,536.41 lakh.

Balance Sheet Signals

The company’s liquidity position appears constrained. Cash and cash equivalents at the standalone level dropped to ₹1.44 lakh from ₹2.00 lakh. Total borrowings increased, with non-current borrowings rising to ₹456.61 lakh from ₹411.54 lakh, largely driven by loans from directors.

The auditor also noted that undisputed statutory dues, including income tax and provident fund payments dating back to 2009-10, remain outstanding, totaling approximately ₹1.84 crore.

What the Numbers Show

The divergence between standalone and consolidated results is notable. While the standalone entity incurred a larger net loss (₹82.79 lakh) than the consolidated group (₹43.98 lakh), the consolidated statement includes a significant Other Comprehensive Income (OCI) gain of ₹113.93 lakh from fair value changes on investments. This non-operational gain turned the total comprehensive income positive at ₹69.95 lakh, masking the underlying operational deficit visible in the profit and loss account.

Ajel Limited approved its Directors Report for the fiscal year ended March 31, 2026 (FY26) and scheduled its 32nd Annual General Meeting for September 30, 2026.

The Board of Directors concluded its meeting on September 5, 2026, having commenced at 11:00 am and ended at 11:30 am at the company's corporate office in Hyderabad. The primary outcomes included finalizing the logistics for the upcoming AGM and approving key statutory documents for FY26.

Key Resolutions and Approvals

The board considered and approved several critical items during the session:

• 32nd AGM Notice: The notice for the 32nd Annual General Meeting was approved. The meeting is scheduled to be held on Wednesday, September 30, 2026, at 10:00 am through Video Conferencing (VC) or Other Audio-Visual Means (OAVM). The deemed venue is the company's registered office in Mumbai.
• Directors Report: The Directors Report for the year ended March 31, 2026, along with its annexures, was approved by the board.
• Scrutinizer Appointment: C V Reddy K & Associates, Company Secretaries, were appointed as the scrutinizer to evaluate the voting process for the 32nd AGM.

Meeting Details and Logistics

The disclosure was issued pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The notice was signed by Srinivasa Reddy Arikatla, Managing Director of Ajel Limited.

Agenda Items for AGM

The ordinary business for the AGM includes:

• Receiving, considering, and adopting the Audited Financial Statements of the company (including consolidated financial statements) for FY26, together with the Reports of the Board of Directors and Auditors thereon.
• No special business was listed for the meeting.

E-Voting and Participation

Shareholders will have the facility for remote e-voting via the National Securities Depository Limited (NSDL) platform. The remote e-voting period commences on September 25, 2026, at 9:00 am and ends on September 29, 2026, at 5:00 pm. The cut-off date for eligibility is September 23, 2026.

Members entitled to attend and vote may appoint a proxy, although physical attendance is dispensed with due to the VC/OAVM format. Shareholders wishing to express views or ask questions must register as speakers by sending a request to cs@ajel.com by 10:00 am on Tuesday, September 29, 2026.

Company Overview

Ajel Limited operates from its registered office in Mumbai and maintains branches in Hyderabad, Bengaluru, Princeton, and San Francisco. The company continues to adhere to regulatory compliance standards under SEBI and MCA guidelines.