Majestic Research auditor issues disclaimer on FY26 results
Statutory auditor J J Patel & Associates has issued a disclaimer of opinion on the audited financial results of Majestic Research Services and Solutions Limited for the half year and year ended March 31, 2026, due to unresolved issues from the Corporate Insolvency Resolution Process (CIRP) and the inability to verify opening balances. The company was acquired by new management following an NCLT order on June 20, 2025, which extinguished previous liabilities and assets, preventing comparative presentation with the prior year. The auditor cited material uncertainty regarding the going concern assumption and the lack of sufficient evidence for key financial statement items, including cash, investments, and creditor claims.
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Statutory auditor J J Patel & Associates has issued a disclaimer of opinion on the audited financial results of Majestic Research Services and Solutions Limited for the half year and year ended March 31, 2026. The auditor stated that it does not express an opinion on the accompanying financial results due to the substantive nature of matters for which sufficient and appropriate audit evidence could not be obtained. Consequently, the auditor is unable to state whether the results have been prepared in accordance with applicable accounting standards or disclose all required information under Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The basis for the disclaimer includes material uncertainty regarding the company's ability to continue as a going concern. The auditor was unable to obtain sufficient evidence to form a conclusion on liabilities, cash and cash equivalents, property, plant and equipment, depreciation, sundry creditors, trade payables, sundry debtors, trade receivables, advances, and investments. These issues were previously reported in a Limited Review Report dated July 08, 2026 concerning the unaudited financial results for the half year ended September 30, 2025, and remain unresolved.
Majestic Research Services and Solutions Limited was undergoing the Corporate Insolvency Resolution Process (CIRP) initiated by an NCLT order dated May 25, 2023. Ms. Vineeta Maheshwari was appointed as the Resolution Professional, suspending the powers of the Board of Directors. Following the approval of the resolution plan by the Hon'ble NCLT on June 20, 2025, the company was transferred to and is now managed by the new management, identified as the Successful Resolution Applicant.
Due to the transition during the current half-year, financial information for the corresponding previous half-year ended March 31, 2025, was not available for comparative presentation. The opening balances of balance sheet items were extinguished or settled pursuant to the approved resolution plan and NCLT order. The non-availability of sufficient supporting records or evidence pertaining to these opening balances prevented verification, leading to the disclaimer of opinion for the current period.
The management is responsible for preparing financial results that provide a true and fair view in accordance with Indian Accounting Standards (Ind AS) and Regulation 33 of the Listing Regulations. The auditor noted that there remains a possibility that certain significant information may not have been considered while preparing the results, which could affect the financial position and the true and fair view thereof. The report was signed by CA Ketan V. Gadhiya, Partner, on behalf of J J Patel & Associates in Ahmedabad on July 08, 2026.
Claims from Financial and Operational Creditors
As informed by the Resolution Professional, claims were received from financial and operational creditors during the CIRP. The amounts claimed, admitted, and proposed in the resolution plan are detailed below:
| Category | Name of Financial Creditor | Amount Claimed (Rs.) | Amount Admitted (Rs.) | Amount proposed in Plan |
|---|---|---|---|---|
| FC (Secured) | EXIM Bank | 2,97,37,642 | 2,97,18,462 | 95,00,000 |
| FC (Secured) | AXIS Bank | 8,99,56,855 | 8,95,21,229 | 7,25,00,000 |
| Sub-Total (Secured) | 11,96,94,497 | 11,92,39,691 | 8,20,00,000 | |
| FC (Unsecured) | Tata Capital Financial Services Ltd. | 69,11,005 | 63,64,237 | 5,00,000 |
| Sub-Total (Unsecured) | 69,11,005 | 63,64,237 | 5,00,000 | |
| Operational | Government | 1,28,20,621 | 1,27,92,074 | 1,00,000 |
| Operational | Others | 64,67,660 | 27,35,064 | |
| Sub-Total (Operational) | 1,92,88,281 | 1,55,27,138 | 1,00,000 | |
| Grand Total | 14,58,93,783 | 14,11,31,066 | 8,26,00,000 |
FC = Financial Creditors. Figures expressed in Indian Rupees (Rs.).
What specific steps will the new management take to reconstruct the missing financial records and resolve the auditor's disclaimer?
How will the inability to present comparative financial data for the previous year impact investor confidence and stock liquidity?
Is there a risk of further regulatory scrutiny or penalties from SEBI due to the non-compliance with Regulation 33 disclosure requirements?
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