KD Leisures Limited has disclosed its Statement on Impact of Audit Qualifications for the financial year ended March 31, 2025, following the restoration of its listing status by the Securities Appellate Tribunal. The company had been unable to submit required regulatory filings due to suspension and subsequent delisting from the stock exchange.

Financial Performance and Audit Qualifications

The company reported a net loss of ₹4.30 lakhs for FY25, significantly higher than the ₹1.00 lakh loss recorded in the previous financial year. The auditors M/S GAV & Associates issued a qualified opinion on the standalone financial results, highlighting two key concerns.

Audit Qualification Details

The auditors raised two significant qualifications in their report. First, confirmations regarding closing balances of loans and advances totaling ₹176.50 lakhs were not made available by management, preventing verification of these amounts. Second, the company failed to comply with Income Tax Act provisions by not filing Income Tax Returns for assessment year 2021-22 onwards, making it liable for applicable penalties.

Balance Sheet Position

The company's balance sheet as of March 31, 2025, shows total assets of ₹186.52 lakhs compared to ₹187.62 lakhs in the previous year. The equity base remained unchanged at ₹324.00 lakhs in paid-up share capital, while other equity stood at negative ₹162.14 lakhs.

Listing Status Restoration

KD Leisures Limited explained that it was under suspension and subsequently delisted when the relevant compliance submissions were due. The Securities Appellate Tribunal, through its order dated March 17, 2026, directed the restoration of the company's listing status. The company retrieved necessary credentials on April 1, 2026, enabling it to submit the required Statement on Impact of Audit Qualifications.

Management Response

The management acknowledged the auditors' observations, stating that the company was inoperative during FY25 with no business activities undertaken. Consequently, statutory compliances and meetings could not be convened. The management indicated it is working to regularize pending compliances and restore the company's active operational status.

KD Leisures Limited has notified BSE Limited and The Calcutta Stock Exchange Limited about its exemption from filing Annual Secretarial Compliance Report for the financial year ended March 31, 2026. The company communicated this development through an official letter dated April 15, 2026, addressed to both exchanges' listing departments.

Regulatory Exemption Details

The company's exemption is based on specific financial thresholds outlined in SEBI regulations. KD Leisures meets the criteria for non-applicability due to its capital structure and financial position as of March 31, 2025.

SEBI Regulation Framework

The exemption applies under Regulation 15(2) of Chapter IV of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015. The company is not required to comply with Regulation 24A of SEBI (Listing Obligations and Disclosure Requirement) Amendment Regulations 2018, which mandates Annual Secretarial Compliance Reports for larger companies.

The regulatory framework is supported by SEBI Circular no. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026, titled "Format for Annual Secretarial Audit Report and Annual Secretarial Compliance Report for Listed entities and their Material Subsidiaries."

Company Information

KD Leisures Limited operates with CIN: L55100MH1981PLC272664 and maintains its registered office at Unit No. 1109, 11th Floor, Lotus Link Square, D.N. Nagar, New Link Road, Andheri, Mumbai, Maharashtra. The corporate office is located in Ludhiana, Punjab.

Compliance Requirements Waived

The regulatory exemption covers the key compliance obligation of Annual Secretarial Compliance Report submission for FY26. The communication was signed by Deepika Awasthi, Director (DIN: 08624842), and digitally submitted to both exchanges on April 15, 2026. The company has requested the exchanges to acknowledge receipt and take the exemption notification on record.