Ashapura Intimates Fashion Limited has reported a net profit of ₹4.88 lakh for the financial year ended March 31, 2026, marking a significant turnaround from the net loss of ₹1,397.27 lakh recorded in the previous fiscal year. The company's board approved the audited standalone financial results at its meeting held on May 16, 2026, at its Ahmedabad venue, which commenced at 01:15 PM and concluded at 02:40 PM. Despite the return to profitability, statutory auditors N.K. Sarraf & Associates issued a disclaimer of opinion on the standalone Ind AS financial statements, citing the unavailability of sufficient appropriate audit evidence regarding opening balances and supporting documents. The disclaimer of opinion has been continuing for the seventh time since March 31, 2019.

Financial Performance

Revenue from operations remained nil for the year, while other income stood at ₹2.31 lakh. Total expenses were reported at ₹86.87 lakh, comprising depreciation and amortization of ₹34.37 lakh, finance costs of ₹0.00 lakh, and other expenses of ₹52.50 lakh. The turnaround to profitability was driven by exceptional items totaling ₹89.43 lakh, primarily relating to impairment and diminution in the value of investments, advances, and receivables, as well as adjustments pursuant to National Company Law Tribunal (NCLT) orders. No tax expenses were recognized given the suspension of operations and continuing losses.

The following table presents the audited standalone financial results for the year ended March 31, 2026, compared with the previous year:

The standalone balance sheet as at March 31, 2026, reflects total assets of ₹517.99 lakh, with equity share capital of ₹2,521.14 lakh and total equity of ₹54.87 lakh. Total current liabilities stood at ₹463.11 lakh.

Auditor's Disclaimer of Opinion

N.K. Sarraf & Associates declined to express an opinion on the accompanying Ind AS standalone financial statements, citing multiple significant limitations. The auditors were unable to obtain sufficient appropriate audit evidence regarding the opening balances as of April 1, 2025, due to unavailability of relevant supporting documents. Multiple irregularities and suspected fraudulent transactions were noted during the year ended March 31, 2018, based on a preliminary assessment conducted by the Liquidator/Resolution Professional (RP) during the Corporate Insolvency Resolution Process (CIRP). The auditors also flagged the inability to independently verify reconciliation of trade payables and other receivables outstanding as on March 31, 2026.

Key financial documents, including bank statements, cash credit account statements, loan account statements, and fixed deposit schedules, were not made available for verification. The company had not deposited various statutory dues — including Provident Fund (PF), Employees' State Insurance (ESIC), Goods and Services Tax (GST), Tax Deducted at Source (TDS), and Income Tax — for financial years 2017–18 through 2024–25, with no provision made for related interest and penalties. While statutory dues for FY 2025–26 were reported as generally settled, the auditors noted the absence of sufficient supporting documentation to independently verify this. Additional qualifications covered the absence of actuarial valuations under Ind AS 19, non-availability of secretarial audit reports and signed board minutes, absence of inventory records and physical verification, inability to verify deferred tax provisions, and non-compliance with Ind AS 21 regarding foreign currency restatements.

Corporate Insolvency and Asset Sale

The company has been undergoing insolvency proceedings since June 28, 2019, when the NCLT admitted the petition filed by IDFC First Bank Limited under the Insolvency and Bankruptcy Code, 2016 (IBC). Mr. Kashyap Vaidya was appointed as the Interim Resolution Professional and subsequently confirmed as the Resolution Professional by the Committee of Creditors. As no resolution plan was received, the NCLT ordered liquidation on October 5, 2020, appointing Mr. Bhavesh Rathod (Registration No. IBBI/IPA-001/IPP01200/2018-19/11910) as the Liquidator.

The Liquidator conducted an e-auction on December 21, 2024, to sell the company as a whole on an "as is where is basis." Grow House Agro Limited was declared the successful bidder on December 23, 2024, and a sale certificate was issued on March 1, 2025. The key details of the transaction are as follows:

As shares have not yet been issued to Grow House Agro Limited, the sum received of ₹21.30 crore has been recorded under current liabilities as an advance received against the sale of shareholding. As per the Tri-Party MOU, Grow House Agro Ltd. is participating only as a facilitator/mediator, with beneficial ownership, control, and economic interest in the corporate debtor vesting with Pervasive Commodities Ltd. and/or its nominated shareholders/SPV. Additionally, during FY 2025–26, fixed assets were sold to M/s. Namharatna Infra LLP, with the resulting profit recognized in the Statement of Profit and Loss.

Going Concern and Impact of Qualifications

The auditors drew attention to the material uncertainty relating to going concern, noting that the company's net worth was fully eroded by accumulated losses as on March 31, 2019. However, from FY 2025–26 onwards, pursuant to the CIRP, the company is considered a going concern once again. The Statement on Impact of Audit Qualifications filed under Regulation 33/52 of SEBI (LODR) Regulations, 2016, indicates that since the impact of qualifications could not be ascertained, the adjusted figures are considered the same as the audited figures. Operational activities of the company have been suspended since the third quarter of FY 2018–19, and no provision for current or deferred tax has been recognized.

Source: None/Company/INE428O01016/b96c4effc0504dc9.pdf

Ashapura Intimates Fashion Limited has notified stock exchanges about its inability to comply with SEBI Regulation 74(5) filing requirements for the quarter ended 31st March, 2026. The company's Managing Director Nikunj Shah communicated this development to both BSE and NSE on 15th April, 2026.

Regulatory Compliance Issues

The company has encountered significant obstacles in meeting its regulatory obligations under SEBI (Depositories and Participants) Regulations, 2018. Ashapura Intimates Fashion Limited disclosed that it has received a liquidation order, which has impacted its ability to maintain normal business operations and regulatory compliance.

Depository Fee Payment Challenges

A critical factor preventing the submission of the required certificate relates to outstanding payments to key depositories. The company has not paid fees to both National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL), which are essential service providers in the securities market infrastructure.

Impact on Registrar Services

Due to these financial and operational challenges, Ashapura Intimates Fashion Limited has been unable to obtain the necessary confirmation certificate from its Registrar & Transfer Agents, MUFG Intime India Pvt. Ltd. (formerly known as Link Intime India Pvt Ltd). This confirmation certificate is a prerequisite for filing the Regulation 74(5) certificate with SEBI.

Company Details and Communication

The company has formally communicated this situation to both stock exchanges for their information and records, acknowledging its current inability to meet the regulatory filing requirements under the specified SEBI regulation.