City Online Services Limited concluded its 27th Annual General Meeting (AGM) on September 30, 2026, with shareholders approving three key resolutions. The meeting, held at the company's registered office in Hyderabad, saw a total of 1,402,718 votes polled out of 5,164,700 outstanding shares.

The first resolution, an ordinary resolution to adopt the audited financial statements for the fiscal year ended March 31, 2026, was passed with 85.74% of the votes cast in favor. Notably, while promoter group votes supported this measure unanimously, a significant portion of public non-institutional investors voted against it via remote e-voting.

Resolution outcomes and voting patterns

The second resolution concerned the re-appointment of Mrs. Suryadevara Naga Durga as a director. This ordinary resolution received overwhelming support, passing with 99.9999% of the votes polled in favor. Only two votes were cast against this proposal.

The third and most significant item on the agenda was a special resolution regarding the sale or disposal of the company's business or undertaking. Despite its critical nature, this special resolution also passed with near-unanimous support, securing 99.9999% of the votes in favor.

What the numbers show

A distinct divergence exists between shareholder sentiment on financial performance versus strategic direction. While the adoption of financial statements faced 14.26% opposition from public shareholders, the proposal to sell or dispose of the entire business undertaking garnered 99.9999% approval. This suggests that while a minority of retail investors may have concerns regarding the reported financials or management's handling of them, there is broad consensus among voting shareholders to proceed with the sale or disposal of the company's core operations.

The meeting was conducted through a combination of remote e-voting and physical polling. Promoter and promoter group members voted exclusively through physical poll papers, casting 684,500 votes. Public non-institutional shareholders utilized both remote e-voting (205,868 votes) and physical polling (512,350 votes). The scrutinizer, Vivek Surana & Associates, confirmed the validity of all votes and the passage of all three resolutions based on the requisite majorities under the Companies Act, 2013.

City Online Services Limited reported a net loss of ₹47.21 lakh for the financial year ended March 31, 2026, compared to a net profit of ₹3.51 lakh in the previous year. The company's revenue from operations increased to ₹772.22 lakh from ₹750.81 lakh in FY25. The Board of Directors approved the audited financial results for the quarter and year ended March 31, 2026, at a meeting held on May 29, 2026.

Financial Performance

For the quarter ended March 31, 2026, the company reported a net loss of ₹14.65 lakh. Total revenue for the quarter stood at ₹219.22 lakh, while total expenses were ₹215.34 lakh. The basic and diluted earnings per share (EPS) for the year were reported at -₹0.91, a decline from ₹0.07 in the previous year.

Auditor's Observations

Statutory auditors Komandoor & Co LLP issued a qualified opinion on the financial results. The report highlights that the company's net worth has been completely eroded, with current liabilities exceeding current assets, indicating a material uncertainty that may cast significant doubt on the company's ability to continue as a going concern. The auditors noted they could not corroborate management's contention regarding the preparation of financial statements on a going concern basis.

The auditors also identified discrepancies in GST reporting, noting an under-reporting of revenue to authorities by ₹42.06 lakh and overstated input tax credit balances for CGST and SGST by ₹2.13 lakh and ₹2.26 lakh respectively. Additionally, unbilled revenue of ₹18.88 lakh was identified for services rendered but not invoiced. The company was also found to have granted loans to a related party exceeding statutory limits without necessary shareholder approvals.

Board Decisions

Alongside the financial results, the Board appointed M/s. D. Rambabu & Co as Internal Auditors and M/s. Vivek Surana & Associates as Secretarial Auditors for the financial year 2026-27.