J J Patel & Associates, the statutory auditor of Majestic Research Services and Solutions Limited, has issued a disclaimer of opinion on the company's audited financial results for the half year and full year ended March 31, 2026. The disclaimer stems from the auditor's inability to obtain sufficient and appropriate audit evidence regarding the financial position due to persistent issues arising from the Corporate Insolvency Resolution Process (CIRP). This development leaves investors without verified assurance on the company's balance sheet or profit and loss statement for the period following its acquisition by new management.

The audit qualification was filed pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Board of Directors approved the financial results in a meeting held on July 8, 2026. The disclaimer is not an isolated event; it follows a similar limited review report dated July 8, 2026, for the half year ended September 30, 2025. The core issue remains the non-verifiability of opening balances as of April 1, 2025, which were carried forward from the unaudited September 30, 2025 figures. These balances were impacted by the NCLT-approved Resolution Plan, under which pre-acquisition assets and liabilities were written off or settled, leaving the new management without access to historical supporting records.

For the year ended March 31, 2026, Majestic Research Services reported a net loss of ₹1,547.59 lakh, compared to a net loss of ₹10.86 lakh in the previous year. The significant increase in loss was driven by exceptional items totaling ₹1,522.74 lakh, which represent the write-off of certain opening balances of assets and liabilities deemed unrecoverable or unpaidable under the Resolution Plan. Revenue from operations remained at zero for both the current and prior periods. Other income stood at ₹2.99 lakh for the year, down from ₹7.32 lakh in the previous year. Total expenses were ₹27.85 lakh, comprising other expenses of ₹27.84 lakh and finance costs of ₹0.01 lakh.

The auditor highlighted twelve specific areas where evidence was lacking, including the non-availability of books of accounts, unverified cash and bank balances, and the status of property, plant, and equipment. Specifically, out of total reported bank balances of ₹224.85 lakh, verification was possible only for accounts with State Bank of India and ICICI Bank. Claims from financial creditors such as EXIM Bank and Axis Bank, and operational creditors, were admitted during the CIRP but lacked settlement documentation required for audit verification. Additionally, investments in Atrevido Research and Consultants Pvt. Ltd. and Majestic Research Services Asia Pte. Ltd., valued at ₹30.94 lakh, were written off without supporting evidence of their existence or valuation basis.

What the Numbers Show

The financial data reveals a company in a transitional phase with a negative net worth of ₹246.16 lakh as of March 31, 2026, down from a positive equity of ₹1,301.44 lakh in the prior year. The sharp deterioration in equity is not reflective of operational performance, given that revenue remained nil and operating losses were minimal at ₹24.85 lakh for the year. Instead, the change is entirely structural, resulting from the accounting adjustments mandated by the NCLT Resolution Plan. The absence of verifiable opening balances means the current period's figures cannot be reliably compared to historical data, creating a material uncertainty regarding the going concern assumption. Investors should note that the reported loss is predominantly a one-time exceptional adjustment rather than an indicator of ongoing operational cash burn.

Statutory auditor J J Patel & Associates has issued a disclaimer of opinion on the audited financial results of Majestic Research Services and Solutions Limited for the half year and year ended March 31, 2026. The auditor stated that it does not express an opinion on the accompanying financial results due to the substantive nature of matters for which sufficient and appropriate audit evidence could not be obtained. Consequently, the auditor is unable to state whether the results have been prepared in accordance with applicable accounting standards or disclose all required information under Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The basis for the disclaimer includes material uncertainty regarding the company's ability to continue as a going concern. The auditor was unable to obtain sufficient evidence to form a conclusion on liabilities, cash and cash equivalents, property, plant and equipment, depreciation, sundry creditors, trade payables, sundry debtors, trade receivables, advances, and investments. These issues were previously reported in a Limited Review Report dated July 08, 2026 concerning the unaudited financial results for the half year ended September 30, 2025, and remain unresolved.

Majestic Research Services and Solutions Limited was undergoing the Corporate Insolvency Resolution Process (CIRP) initiated by an NCLT order dated May 25, 2023. Ms. Vineeta Maheshwari was appointed as the Resolution Professional, suspending the powers of the Board of Directors. Following the approval of the resolution plan by the Hon'ble NCLT on June 20, 2025, the company was transferred to and is now managed by the new management, identified as the Successful Resolution Applicant.

Due to the transition during the current half-year, financial information for the corresponding previous half-year ended March 31, 2025, was not available for comparative presentation. The opening balances of balance sheet items were extinguished or settled pursuant to the approved resolution plan and NCLT order. The non-availability of sufficient supporting records or evidence pertaining to these opening balances prevented verification, leading to the disclaimer of opinion for the current period.

The management is responsible for preparing financial results that provide a true and fair view in accordance with Indian Accounting Standards (Ind AS) and Regulation 33 of the Listing Regulations. The auditor noted that there remains a possibility that certain significant information may not have been considered while preparing the results, which could affect the financial position and the true and fair view thereof. The report was signed by CA Ketan V. Gadhiya, Partner, on behalf of J J Patel & Associates in Ahmedabad on July 08, 2026.

Claims from Financial and Operational Creditors

As informed by the Resolution Professional, claims were received from financial and operational creditors during the CIRP. The amounts claimed, admitted, and proposed in the resolution plan are detailed below:

FC = Financial Creditors. Figures expressed in Indian Rupees (Rs.).