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.

Modipon Limited has announced that its board of directors will meet on Friday, May 29, 2026. The primary agenda for the meeting is to consider and approve the audited financial results of the company for the quarter and year ended March 31, 2026.

Board Meeting Details

The meeting will be conducted under Regulation 29 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The board will review the financial performance for the fourth quarter of the fiscal year 2026 and the full fiscal year.

Trading Window Closure

In compliance with regulatory norms, the company has specified the closure of the trading window for designated persons. This restriction is in effect to prevent insider trading during the period leading up to the financial results announcement.

The intimation regarding the trading window closure was previously communicated via a letter dated March 28, 2026. The window will reopen on June 1, 2026.