Modipon reported a net loss of ₹51.05 lakh for the financial year ended March 31, 2026, narrowing from ₹66.16 lakh in the previous year. The company generated zero revenue from operations as its manufacturing unit remains permanently closed since 2007.

The 59th Annual General Meeting is scheduled for September 29, 2026. Shareholders will vote on the appointment of Vasu Bansal & Co as statutory auditors for a five-year term and approve material related-party transactions involving loans from Status Mark Finvest Limited and Ashoka Mercantile Limited.

Financial Performance

The company recorded total expenses of ₹51.05 lakh, down from ₹70.98 lakh in FY25. Employee benefits accounted for ₹27.00 lakh, while other expenses stood at ₹24.05 lakh. There was no other income during the year, compared to ₹4.82 lakh in FY25.

What the Numbers Show

The reduction in net loss was driven entirely by a decrease in operating expenses rather than revenue generation. With turnover at nil, the company’s burn rate slowed significantly, with total expenses falling by nearly 28%. However, the absence of any operating cash flow means the entity remains dependent on external funding to meet statutory and administrative obligations.

Balance Sheet and Liabilities

Total assets stood at ₹764.66 lakh, with current assets comprising ₹606.40 lakh. Liabilities totaled ₹9,990.22 lakh, resulting in negative net worth of ₹9,225.56 lakh. Borrowings increased slightly to ₹3,859.88 lakh in current liabilities.

Corporate Governance Updates

The board proposes appointing Vasu Bansal & Co as statutory auditors at a remuneration of ₹3.20 lakh per annum. Additionally, the AGM seeks approval for unsecured financial assistance of up to ₹1 crore each from Status Mark Finvest Limited and Ashoka Mercantile Limited to cover day-to-day expenses.

Modipon Limited reported a net loss of ₹51.05 lakh for the financial year ended March 31, 2026, narrowing from a loss of ₹66.16 lakh in the previous year. The company recorded total income of ₹282 lakh for the year, while total expenses stood at ₹70.98 lakh. The statutory auditors, B. M. Chatrath & Co. LLP, issued a qualified opinion on the financial results, citing unascertained interest liabilities and pending litigations.

The Board of Directors approved the audited financial results for the quarter and year ended March 31, 2026, in a meeting held on May 29, 2026. The auditor’s report highlighted that the company has not provided interest of ₹1000.54 lakh up to March 31, 2008, on overdue amounts payable to a supplier. Additionally, the amount of interest to be provided for the period from April 1, 2008, to March 31, 2026, has not been ascertained.

Financial Performance

For the quarter ended March 31, 2026, the company reported a net loss of ₹15.94 lakh, compared to a loss of ₹10.93 lakh in the same period of the previous year. Revenue from operations was nil for the quarter, while other income stood at ₹476 lakh. Total expenses for the quarter were ₹15.94 lakh, primarily driven by employee benefits expenses and other expenses.

The company’s earnings per share (EPS) for the year ended March 31, 2026, was negative at ₹0.44 on a basic and diluted basis. The cash and cash equivalents as of March 31, 2026, stood at ₹559 lakh, compared to ₹459 lakh in the previous year.

Auditor’s Qualifications and Litigations

The auditors drew attention to several material uncertainties, including pending litigations with Punjab National Bank (PNB) regarding a one-time settlement (OTS) of dues. PNB had approved an OTS of ₹1900 lakh, but the revival of the OTS was declared failed by the bank, and PNB is resuming recoveries. The matter is sub-judice before the Hon’ble High Court of Allahabad.

The company also faces disputes with tax authorities, including a demand for central excise duty, interest, and penalty amounting to ₹58.05 lakh for the period from 1994 to 1997. The company has filed an appeal against the order, and the matter is pending before the Customs, Excise and Service Tax Appellate Tribunal, Allahabad.

Going Concern and Internal Controls

The financial statements have not been prepared on a going concern basis as the company closed its manufacturing operations in May 2007. The auditors also noted that the company used accounting software for maintaining its books of account that does not have a feature of recording audit trail (edit log) facility. Consequently, the auditors issued a qualified opinion on the internal financial controls over financial reporting.