Garbi Finvest Limited has maintained full compliance with the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 for the financial year ended March 31, 2026. A secretarial audit conducted by KSN & Company confirmed that the listed entity adhered to all applicable statutory provisions and maintained proper board processes. The review covered the entity's filings with BSE Limited and The Calcutta Stock Exchange Ltd, along with its website disclosures.

The audit verified compliance with key regulations, including the SEBI (Prohibition of Insider Trading) Regulations, 2015, and the Secretarial Standards issued by the Institute of Company Secretaries of India. KSN & Company reported that all applicable policies under SEBI Regulations were adopted by the board and updated in conformity with regulatory guidelines. The entity also maintained a functional website with accurate web-links for documents as required under Regulation 27(2).

Governance and Disclosures

The report highlighted that none of the directors of Garbi Finvest Limited were disqualified under Section 164 of the Companies Act, 2013. The entity conducted performance evaluations of the Board, Independent Directors, and Committees as prescribed. Regarding related party transactions, the company obtained prior approval from the Audit Committee where applicable, and provided necessary disclosures for transactions approved subsequently.

Regulatory Actions and Auditor Resignation

The audit confirmed that no actions were taken against the listed entity, its promoters, directors, or subsidiaries by SEBI or the stock exchanges during the review period. Additionally, the report examined compliances related to the resignation of statutory auditors as per SEBI Circular CIR/CFD/CMD1/114/2019 dated October 18, 2019. Since no auditor resignations occurred during the period, the specific conditions regarding auditor reporting and disclaimers were marked as not applicable.

KSN & Company concluded that there were no deviations from the regulations or circulars examined. The entity has suitably included the conditions mentioned in the SEBI circular regarding the appointment of statutory auditors. The report, signed by Practising Company Secretary Nand Kishore Sharma, was issued on May 29, 2026.

Garbi Finvest reported a net loss of ₹279.63 lakh for the financial year ended March 31, 2026, a reversal from the net profit of ₹20.95 lakh recorded in the previous year. Total income for the year rose to ₹466.59 lakh from ₹435.88 lakh in FY25, supported by interest income of ₹255.14 lakh and a profit on the sale of investments amounting to ₹211.45 lakh. However, the company faced significant headwinds with total expenses surging to ₹1,104.20 lakh, largely due to a sharp increase in depreciation and amortisation expenses to ₹1,051.38 lakh.

For the quarter ended March 31, 2026, the company posted a net loss of ₹509.15 lakh. Total income for the quarter stood at ₹114.64 lakh, while expenses were recorded at ₹824.93 lakh. The board approved the audited financial results on May 29, 2026, following a review by the audit committee and statutory auditors.

Auditor's Observations

The statutory auditors, Kushal S Poonia & Co., highlighted significant non-compliance issues in their report. They noted that the company failed to follow the estimated credit loss (ECL) model as required under Ind AS 109 for financial instruments. Additionally, the company did not implement Internal Financial Controls (IFC) as mandated by the Companies Act, 2013, and failed to provide necessary control design documentation, preventing the auditors from testing the effectiveness of management controls.

The auditors also pointed out that the company had not accounted for interest on all loan accounts. Consequently, they were unable to comment on the completeness and accuracy of the revenue recorded in the books of account.

Financial Performance

The following table outlines the key financial metrics for the quarter and year ended March 31, 2026:

On the balance sheet front, the company's total assets stood at ₹7,094.09 lakh as of March 31, 2026, down from ₹8,017.69 lakh in the previous year. Total equity decreased to ₹6,897.35 lakh from ₹7,575.25 lakh over the same period. Cash and cash equivalents also reduced to ₹64.86 lakh from ₹117.73 lakh.