Interworld Digital Limited has disclosed significant non-compliances regarding listing fees and loan repayments in its Annual Secretarial Compliance Report for the year ended March 31, 2026. The report, filed with the Bombay Stock Exchange (BSE), confirms that the company has defaulted on the payment of Annual Listing Fees to the exchange. Consequently, BSE has suspended the trading of the company's scrip on its web portal, though shares remain tradable on a Trade-for-Trade basis on the first trading day of every week until the outstanding fees are cleared.

The company attributed the non-payment of listing fees to a paucity of funds. Management stated that efforts are underway to arrange the necessary funds to settle the dues, though no specific timeline for payment was provided. This default constitutes a violation of Regulation 14 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which mandates the timely payment of fees to recognized stock exchanges.

Beyond the exchange fees, the report reveals defaults in the payment of interest and principal amounts on loans from banks and financial institutions for the financial year ending March 31, 2026. Specifically, the company defaulted on the last installment of a Loan against Vehicle obtained from Kotak Mahindra Prime Limited. The report notes that the vehicle associated with this loan is currently in the possession of the company's former Managing Director, Man Mohan Gupta. The company alleged that Gupta fraudulently shifted the business and intellectual property to other entities and has failed to cooperate with requests to return the vehicle or settle the outstanding debt.

Further financial irregularities detailed in the report include the acceptance of unsecured loans aggregating to Rs. 167.05 Lakhs from related parties, including related party companies and directors. These loans were interest-free and were reportedly obtained to meet temporary funding requirements. The company has been advised to ensure continued compliance with the applicable provisions of the Companies Act, 2013, regarding such transactions.

Despite these deviations, the Practicing Company Secretary, Kundan Agrawal & Associates, certified that Interworld Digital Limited has complied with the provisions of the SEBI Act, SCRA, and various other SEBI regulations, including those concerning insider trading and disclosures. The report confirmed that no statutory auditor resigned during the review period and that the company maintains a functional website with required disclosures. The status of key compliance parameters is summarized below:

Interworld Digital Limited reported a net loss of ₹26.05 lakh for the financial year ended March 31, 2026, as the company continues to record zero revenue from operations. The standalone audited financial results, approved by the Board on May 28, 2026, reveal a total loss for the period at ₹26.05 lakh, widening from the previous year's loss of ₹22.24 lakh. The company’s operations have been non-functional due to the alleged fraudulent diversion of its business and intellectual property by a former managing director.

Financial Performance

The company recorded no income from operations for the quarter and year ended March 31, 2026. Total expenses for the year amounted to ₹26.05 lakh, driven primarily by employee benefit expenses of ₹13.42 lakh and other expenses of ₹12.55 lakh. The basic and diluted earnings per share (EPS) for the year stood at a loss of ₹0.01. The paid-up equity share capital remained constant at ₹4,783.77 lakh.

Audit Qualifications and Compliance Issues

M/s Nemani Garg Agarwal & Co., the statutory auditors, issued a qualified opinion in their report. The auditors highlighted that the past Managing Director, Mr. Manmahon Gupta, fraudulently shifted the entire business and intellectual property to his own entity, resulting in no operational revenue. Additionally, the auditors noted that statutory dues, including Service Tax, TDS, and Professional Tax aggregating to ₹1.91 crore, have been outstanding since FY 2009-10, with no provision made for interest or penalties.

The report also pointed out that the company has not provided for estimated credit loss on outstanding debtors amounting to ₹1,303.55 lakh, nor has it disclosed the realizable value of unquoted non-current investments of ₹1.47 crore. The auditors further emphasized that there has been no business revenue or movement in the majority of assets and liabilities for a considerable time.

Defaults and Liabilities

Interworld Digital Limited has disclosed defaults in loan repayments. The company defaulted on the last installment of a vehicle loan from Kotak Mahindra Prime Limited, with an outstanding balance of ₹0.06 crore as on March 31, 2026. The total financial indebtedness, including short-term and long-term debt, stands at ₹1.61 crore. The company also faces a contingent liability regarding differential Registrar of Companies (ROC) fees of ₹55.97 lakh, related to a revision in authorized share capital from ₹21 crore to ₹70 crore during FY 2010-11. A writ petition challenging this fee revision is currently pending in the Delhi High Court.

Board Decisions

During the meeting held on May 28, 2026, the Board reappointed M/s Sanghi & Co., Chartered Accountants, as the internal auditor for the financial year 2026-27 based on the recommendation of the Audit Committee. The Board also took on record the Statement of Impact of Audit Qualification. The company noted that it has not paid annual listing fees to the Bombay Stock Exchange Limited since FY 2018-19, and consequently, its shares are traded on a trade-for-trade basis only on the first trading day of every week.