Garbi Finvest reported a net loss of ₹509.15 lakh for the quarter ended March 31, 2026 (Q4FY26), a significant decline from the profit of ₹18.59 lakh recorded in the quarter ended December 31, 2025. For the full financial year FY26, the company posted a net loss of ₹279.63 lakh, reversing the net profit of ₹29.95 lakh achieved in FY25. The total income for Q4FY26 was ₹114.64 lakh, while total expenses surged to ₹824.93 lakh, primarily driven by other expenses which amounted to ₹795.98 lakh.

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. The meeting commenced at 05:00 P.M. IST and concluded at 05:30 P.M. IST. The audit committee had previously reviewed these results on the same day. The filing was made pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Auditor's Observations

Kushal S. Poonia & Co., Chartered Accountants, issued a qualified opinion on the Ind AS financial statements. The auditors noted that the company did not comply with applicable Indian Accounting Standards (Ind AS) regarding the provisioning and recognition of expected losses and liabilities. They stated that in the absence of adequate supporting workings and an appropriate provisioning methodology, they were unable to comment on the adequacy of provisions created or their consequential impact on the financial position.

Additionally, the auditors highlighted that Garbi Finvest, being a Non-Banking Financial Company (NBFC), recognized and calculated interest income based on internal management calculations. No standardized methodology, supporting workings, or system-generated reports were furnished for audit verification, preventing the auditors from commenting on the accuracy and completeness of interest income and related balances.

Emphasis of Matter

The auditors drew attention to several material matters. The company did not furnish loan agreements, sanction documents, or credit appraisal records, making it impossible to verify the compliance, recoverability, and valuation of loans and advances. Confirmations for certain balances under customers and borrowers were only available selectively and were incomplete. Furthermore, detailed salary sheets and payroll records were not provided, hindering the verification of employee benefit expenses and compliance with Ind AS 19.

During the year, the company wrote off a net amount of ₹4,83,595 without providing adequate supporting documents or approvals. The auditors also noted that the company used accounting software lacking an audit trail (edit log) facility, which is a statutory requirement.

Financial Performance

The standalone financial results for the period show a deterioration in profitability. Interest income for Q4FY26 was ₹65.71 lakh, up from ₹60.68 lakh in the previous quarter. Other income stood at ₹48.93 lakh. On the expense side, employee benefit expenses rose to ₹28.94 lakh in Q4FY26 from ₹10.61 lakh in the preceding quarter.

The company's basic and diluted earnings per share (EPS) for Q4FY26 was -4.27, compared to 0.14 in the quarter ended December 31, 2025. For the full year FY26, the EPS was -3.95, down from 1.18 in FY25.

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.