Ind-Agiv Commerce reported a standalone net loss of ₹10.76 lakh for the quarter ended June 30, 2026, widening from the ₹6.80 lakh loss in the preceding quarter. The board approved the unaudited financial results on September 9, 2026.

The company’s independent auditors issued a qualified opinion on the consolidated and standalone financial statements. The qualification stems from the use of multiple ERP accounting software systems lacking audit trail features, forcing reliance on manual and Excel-based records.

Financial Performance

Revenue from operations was nil for the current quarter, continuing the trend from the previous quarter where no revenue was recorded. In contrast, the corresponding quarter of the previous year (Q1FY26) saw revenue of ₹163.62 lakh on a consolidated basis.

Total expenditure for the standalone entity rose to ₹10.76 lakh in Q1FY27, up from ₹6.80 lakh in the prior quarter. Key expense components included:

• Employee benefits: ₹3.85 lakh
• Finance costs: ₹3.13 lakh
• Other expenses: ₹3.52 lakh
• Depreciation & amortization: ₹0.25 lakh

The consolidated net loss stood at ₹11.49 lakh for the quarter, compared to a consolidated loss of ₹10.62 lakh in the same period last year.

Auditor Concerns

The independent auditors, H.G. Sarvaiya & Co., highlighted significant compliance and operational risks in their report dated September 3, 2026.

Unpaid Statutory Dues

The company has provided for but not paid statutory dues totaling ₹17,88,606 lakh. This includes:

• Provident Fund (PF): ₹34,795 lakh
• ESIC: ₹17,549 lakh
• TDS: ₹17,36,262 lakh

Overdue Loans and Legal Proceedings

Substantial loan obligations remain overdue. Pre-sales working capital loans from Redfort Capital Finance Co. Pvt Ltd, totaling approximately ₹7.78 crore (principal plus interest), are declared as Non-Performing Assets (NPA). These matters are currently under court law and pending arbitration under the direction of the Delhi High Court.

Additional working capital loans from lenders including Bajaj Fin Serve, Clix Capital, Neo Growth Credit Pvt Ltd, and Insta Capital are undergoing restructuring processes. The total outstanding overdue amount across these lenders exceeds ₹8 crore when combined with the Redfort liabilities.

What the Numbers Show

The absence of revenue generation alongside rising finance costs and employee benefits indicates a period of operational dormancy or severe contraction. The reliance on manual accounting systems, as noted by the auditor, raises concerns about data integrity and internal controls during this critical restructuring phase.

Ind-Agiv Commerce Limited reported a consolidated net loss of ₹125.86 lakh for the quarter ended March 31, 2026, widening from a loss of ₹1.72 lakh in the same period last year. The company’s auditors issued a qualified opinion on the financial statements, citing significant concerns over unprovided interest costs and the reliability of accounting records.

The board of directors approved the standalone and consolidated audited annual results for FY26 on August 27, 2026. Standalone revenue from operations stood at ₹245 lakh for the full year, down from ₹353.15 lakh in FY25. Consolidated revenue was ₹257.71 lakh, compared to ₹389.72 lakh in the prior fiscal year.

Auditor Qualifications and Liabilities

Independent auditors H. G. Sarvaiya & Co. highlighted two primary bases for their qualified conclusion. First, they noted inconsistencies in opening and closing balances, inventory accounting, and asset capitalization due to the use of multiple ERP applications without operative audit trails. Second, the company did not provide for interest and penal charges aggregating ₹35.07 lakh on delayed borrowings from banks and non-banking financial companies as of March 31, 2026.

The auditors stated that finance costs and current liabilities are understated by this amount, resulting in an overstated profit for the period. Management views suggest these matters are under arbitration or restructuring, with some liabilities potentially being waived.

What the Numbers Show

The company’s cash position deteriorated significantly during FY26. Cash and cash equivalents fell from ₹65 lakh at the beginning of the year to just ₹27 lakh by year-end. This decline occurred despite a preferential issue of shares that raised ₹596 lakh in financing activities. Operating activities consumed ₹611 lakh in cash, driven largely by increases in sundry debtors (₹736 lakh) and other financial liabilities (₹475 lakh), signaling substantial working capital pressure.

Financial Performance Overview

Consolidated net loss narrowed to ₹125.86 lakh from ₹189.63 lakh in FY25. However, this improvement was partly driven by exceptional items totaling ₹76.57 lakh in both standalone and consolidated results. Without these exceptional gains, the underlying operational losses would have been deeper.

Balance Sheet and Legal Status

Total assets declined to ₹1,762 lakh (standalone) and ₹1,960 lakh (consolidated) as of March 31, 2026, from ₹2,775 lakh and ₹3,032 lakh respectively in FY25. Trade receivables dropped sharply to ₹219 lakh from ₹956 lakh in the standalone balance sheet.

The auditors emphasized that statutory dues aggregating ₹17.89 lakh (standalone) and ₹19.24 lakh (consolidated) remained unpaid despite being provided for in the books. Additionally, borrowings from Redfort Capital Finance Company Private Limited have been classified as non-performing assets, with legal proceedings pending before the Arbitral Tribunal under the directions of the Delhi High Court.