Minal Industries Limited has resubmitted its audited standalone and consolidated financial results for the financial year ended March 31, 2026, to BSE. The revised filing addresses discrepancies highlighted by the exchange in a previous submission and complies with Regulation 33 of the SEBI (LODR) Regulations, 2015. The company reported a standalone accumulated loss of Rs 2216.82 lakhs for the year, while the consolidated group posted a profit of Rs 73.27 lakhs.

The statutory auditors, R H Modi & Co., expressed an unmodified opinion on the financial statements but drew attention to a material uncertainty regarding the company's ability to continue as a going concern. The standalone financial statements were prepared on this basis, contingent upon the company strengthening its strategy, expanding its market, and securing financial support from promoters. The auditors noted that the net accumulated losses under retained earnings for the group stood at Rs 603.94 lakhs as of March 31, 2026.

Auditor’s Emphasis of Matter

The auditors highlighted several key matters in their report. Interest income for the year ended March 31, 2026, was not accrued for a loan given to subsidiary Minal Infojewels Limited due to uncertainty regarding realization, stemming from the subsidiary's accumulated losses. Additionally, the company wrote off its investment and loan receivable from its wholly-owned overseas subsidiary, Minal International FZE, which wound up its business on February 10, 2025. The total write-off amounted to Rs 408.99 lakhs.

A legal dispute is also pending before the National Company Law Tribunal (NCLT), filed by Managing Director Shrikant Parikh regarding ownership of equity shares. The company stated it does not expect any financial implication based on current legal advice.

Financial and Operational Details

The auditors identified the valuation of inventories as a key audit matter. The company held inventories worth Rs 631.92 lakhs on a standalone basis and Rs 5662.80 lakhs on a consolidated basis as of March 31, 2026. The valuation required significant management judgment regarding future saleability and net realizable value.

Internal Controls and Compliance

The auditors issued a disclaimer of opinion on the adequacy and operating effectiveness of internal financial controls over financial reporting for both standalone and consolidated statements. They stated that the company had not established these controls in accordance with the Guidance Note issued by the Institute of Chartered Accountants of India. Consequently, sufficient appropriate audit evidence could not be obtained to form an opinion.

Regarding compliance, the auditors noted that the company had not maintained proper records showing full particulars of fixed assets and that no physical verification of fixed assets was conducted during the year. They also reported overdue amounts of more than ninety days, including a principal amount of Rs 1187.96 lakhs and interest of Rs 276.99 lakhs, for which reasonable steps had not been taken for recovery.

Minal Industries Limited has submitted the newspaper publication of its audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, to BSE Limited. The statutory auditors, R H Modi & Co., issued an unmodified opinion on the financial statements but highlighted a material uncertainty regarding the standalone entity's ability to continue as a going concern due to accumulated losses of ₹2216.82 lakhs. The Board of Directors, in a meeting held on June 4, 2026, approved the results and appointed M/s MMY & Associates as internal auditors for FY 2026–2027.

Financial Results and Auditor's Report

The auditors noted that the standalone financial statements were prepared on a going concern basis based on the company's efforts to strengthen its strategy and the availability of financial support from promoters. For the consolidated entity, the group reported a profit of ₹73.27 lakhs for the year ended March 31, 2026, compared to a loss of ₹414.43 lakhs in the previous year. However, the net accumulated losses under retained earnings stood at ₹603.94 lakhs as of March 31, 2026.

Key Audit Matters and Emphasis of Matters

The audit report drew attention to several emphasis of matters. Interest income on a loan given to subsidiary Minal Infojewels Limited was not accrued due to the subsidiary's accumulated losses and inability to pay. Additionally, the company wrote off an investment of ₹18.37 lakhs and a loan receivable of ₹390.61 lakhs related to its subsidiary Minal International FZE, which wound up its business in the previous financial year. The auditors also noted ongoing proceedings at the National Company Law Tribunal (NCLT) filed by the Managing Director regarding a dispute over share ownership.

Internal Financial Controls and Governance

The auditors expressed a disclaimer of opinion on the adequacy and operating effectiveness of internal financial controls over financial reporting for both standalone and consolidated statements. This was due to the company not establishing controls based on essential components stated in the relevant Guidance Note issued by the Institute of Chartered Accountants of India. The Board approved the appointment of M/s MMY & Associates as internal auditors to strengthen the internal audit framework.

Key Details