Minolta Finance Ltd approved a rights issue of equity shares to raise up to ₹48,00,00,000 on June 30, 2026. The board approved the issuance of 40,00,00,000 fully paid-up equity shares with a face value of ₹1.20 each at a price of ₹1.20 per share. Eligible shareholders are entitled to subscribe to 4 Right Equity Shares for every 1 existing equity share held as on the record date. The rights issue aims to bolster the company's capital base and support its financial objectives.

The board meeting, conducted via video conferencing, finalized the critical parameters for the issue. The record date to determine eligibility has been set for Friday, July 17, 2026. The rights issue opens on Saturday, August 1, 2026, with the last date for market renunciation scheduled for Monday, August 10, 2026. The full issue amount is payable on application, and fractional entitlements will be ignored in accordance with SEBI regulations.

Key Details of the Rights Issue

The board also approved the draft and final Letters of Offer, the Abridged Letter of Offer, the Composite Application Form, and the Rights Entitlement Letter. Necessary agreements and regulatory filings pursuant to the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 will be executed. The intimation regarding the outcome was submitted to BSE Limited and The Calcutta Stock Exchange Ltd.

Minolta Finance Limited reported a widened net loss of ₹329.24 lakh for the financial year ended March 31, 2026, following the application of audit qualifications on its financial results. The company, which had initially reported a loss of ₹142.81 lakh, saw its financial position impacted by adjustments related to asset classification, interest accruals, and regulatory compliance gaps. The statutory auditors, M/s JCR & Co. LLP Chartered Accountants, issued a qualified opinion on the standalone financial results, citing material deviations in accounting practices and documentation.

Qualified Opinion and Key Adjustments

The auditors identified that the company reclassified a loan account from "Doubtful Asset" to "Sub-Standard Asset" and reduced the ECL provision by ₹1.84 crore based on Tax Deducted at Source (TDS) deposits of ₹14.42 lakhs made by the borrower after the audit period. However, no actual recovery was made by the reporting date, leading to an understatement of the ECL provision and loss in the Profit & Loss account by ₹1.84 crore. Furthermore, interest expenses were not provided for loan accounts amounting to ₹3.38 crores due to missing documents, and an additional ₹2.43 crores of interest expense was not accrued for a specific borrower, resulting in an understated finance cost of ₹2.43 crore.

Investment Documentation and Regulatory Compliance

The auditors also flagged investments in quoted and unquoted shares amounting to ₹62.96 lakhs, for which the company currently lacks ownership documents. Management stated it is actively following up with concerned parties to secure the necessary proof of ownership. In a separate regulatory observation, the auditors noted that as a Non-Banking Financial Company (NBFC), Minolta Finance required prior written permission from the Reserve Bank of India (RBI) for any takeover or change in management. The company did not obtain this approval for changes in FY 2024-25, which may result in monetary penalties or other regulatory actions.

Financial Performance and Impact Matrix

The company's total income for FY26 stood at ₹1,196.92 lakh, while total expenditure was reported at ₹1,401.97 lakh. After accounting for the impact of audit qualifications, the total expenditure increased to ₹1,588.40 lakh. The company's net worth also declined from ₹931.05 lakh to ₹744.62 lakh post-adjustment. The Board of Directors approved the audited financial statements and the Statement on Impact of Audit Qualification during their meeting held on May 26, 2026.

Financial Impact of Audit Qualifications