Manraj Housing Finance has scheduled its 36th Annual General Meeting for September 28, 2026, to adopt financial statements reflecting a net loss of ₹47.97 lakh for FY26. The meeting will be held at the company's registered office in Jalgaon, Maharashtra, starting at 10:30 am.

The company reported zero revenue from operations for the year ended March 31, 2026, relying entirely on other income of ₹4.29 lakh against total expenses of ₹52.26 lakh. This marks a significant decline from the net profit of ₹33.64 lakh reported in FY25, driven by a sharp drop in other income from ₹54.29 lakh to ₹4.29 lakh.

Meeting Details

Shareholders holding shares on the cut-off date of September 19, 2026, are eligible to vote. The book closure period runs from September 19, 2026, to September 28, 2026 (both days inclusive). The company will provide a remote e-voting facility through Bigshare Services Pvt Ltd. The e-voting period runs from September 25, 2026, at 9:00 am to September 27, 2026, at 5:00 pm.

The Annual Report and AGM notice are available electronically on the company website and the BSE Limited platform. Physical letters with web-links have been dispatched to shareholders without registered email addresses.

Agenda Items

The AGM notice outlines several ordinary and special business items:

• Adoption of Accounts: Approval of audited financial statements for FY26, including the balance sheet, profit and loss account, and cash flow statement.
• Director Reappointment: Reappointment of Ms. Neetika Manish Jain (DIN: 00394934), who retires by rotation and has offered herself for reappointment.
• Independent Director Appointment: Appointment of Mr. Ajitsingh Bansilal Behra (DIN: 11874253) as an Independent Director for a five-year term, effective August 12, 2026.
• Constitutional Amendments: Alteration and adoption of new Memorandum of Association (MOA) and Articles of Association (AOA) to align with the Companies Act, 2013.
• Object Clause Alteration: Expansion of main objects to include business activities related to jewellery, bullion, precious metals, and allied products, including manufacturing, retail, and financing services.

Financial Performance

The company remains largely inactive in its core housing finance business, having discontinued operations several years ago. The FY26 results highlight continued operational dormancy:

Auditor Concerns

The statutory auditors, Ratan Chandak & Company LLP, issued an adverse opinion on the financial statements due to material uncertainties. Key concerns include:

• Related Party Advances: Over 99% of assets comprise advances to related parties under investigation by the Enforcement Directorate (ED) under PMLA, with assets provisionally attached.
• Liabilities: Approximately 65% of liabilities are unsecured loans from related parties with beneficial interests in the attached properties.
• Bank Default: The company defaulted on a loan from Jalgaon Peoples Co-Op. Bank Ltd., with outstanding principal of ₹687.03 lakh as of February 2020. Interest accruals remain unrecognized despite assignment to ASREC (India) Ltd.
• Going Concern: Accumulated losses of ₹574.96 lakh and lack of operational activity cast significant doubt on the company's ability to continue as a going concern.

What the Numbers Show

The divergence between the company's reported net loss of ₹47.97 lakh and the auditor's note on understated liabilities reveals a critical disconnect in financial reporting. While the profit and loss account reflects only recognized expenses, the auditor highlights that uncharged interest and penal interest on the default bank loan amount to approximately ₹711.42 lakh in potential additional liability. This suggests the reported equity erosion is significantly understated, as the balance sheet does not capture the full extent of debt obligations arising from the long-standing bank default. The reliance on related-party funding, constituting 65% of liabilities, further indicates a dependency structure that may not be sustainable without resolving the ED-linked asset attachments.

Manraj Housing Finance Limited reported a net loss of ₹47.97 lakh for the financial year ended March 31, 2026, a significant reversal from the net profit of ₹33.64 lakh recorded in the previous year. The company’s total income for FY26 stood at ₹4.29 lakh, a sharp decline from ₹54.29 lakh in FY25, while total expenses increased to ₹52.26 lakh from ₹20.65 lakh in the prior year. The statutory auditors, M/s Ratan Chandak & Co LLP, issued an adverse opinion on the financial statements, citing material uncertainties regarding the recoverability of assets and the company's ability to continue as a going concern.

Financial Performance

The company’s financial results for the quarter and year ended March 31, 2026, were approved by the Board of Directors on May 25, 2026. Revenue from operations remained nil for both the quarter and the year, with income solely derived from other sources. Expenses were driven by employee benefits, finance costs, and other expenses, which collectively outweighed the total income. The basic and diluted earnings per share (EPS) for FY26 stood at -₹0.96, compared to ₹0.67 in the previous year.

Auditor’s Adverse Opinion

M/s Ratan Chandak & Co LLP, Statutory Auditors, issued an adverse opinion, stating that the financial statements do not present a fair view due to material and pervasive matters. The auditors highlighted that more than 99% of the company's assets comprise advances to related parties, which are currently under investigation by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act (PMLA). The attachment of these assets by the ED raises significant concerns about their recoverability and valuation.

Additionally, approximately 65% of the company's liabilities consist of unsecured loans from related parties, creating uncertainty about the completeness and accuracy of the liabilities. The auditors also noted a default in the repayment of bank borrowings amounting to ₹687.03 lakh, which has been transferred to ASREC (India) Ltd. The company has not provided for uncharged interest and penal interest amounting to ₹711.42 lakh, leading to an understatement of losses and liabilities.

Going Concern and Internal Controls

The auditors expressed significant doubt regarding the company's ability to continue as a going concern. Manraj Housing Finance has not carried out significant operational activities for over three years and has accumulated losses of ₹574.96 lakh, eroding its net worth. The adverse opinion extends to the company's internal financial controls over financial reporting, which were found to be inadequate and ineffective due to material weaknesses, including the non-implementation of the audit trail feature in accounting software.

Management Response

In the Statement on Impact of Audit Qualifications, management acknowledged the investigation by the ED and the attachment of properties but stated that the companies under investigation share only common management with Manraj Housing Finance. Regarding the bank default, management mentioned a revoked one-time settlement with ASREC (India) Ltd. and expressed confidence in resolving the matter through a renewed settlement once legal proceedings stabilize. The company holds significant real estate assets and expects to restore positive net worth upon liquidation post-resolution of impediments.