Owais Metal and Mineral Processing Limited has obtained the Structured Digital Database (SDD) compliance certificate for the quarter ended March 31, 2026, confirming adherence to regulations regarding the maintenance of insider trading data. The certification, issued by Kushal Agrawal, a Practising Company Secretary, validates the company's internal controls for preserving Unpublished Price Sensitive Information (UPSI). This compliance is mandated under Regulation 3(5) and 3(6) of the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015.

The certificate confirms that Owais Metal and Mineral Processing Limited has established a digital database capable of recording the nature of UPSI along with the date and time of dissemination. It verifies that the system is non-tamperable, maintains an audit trail, and is designed to preserve records for 8 years. Access to the database is restricted through established control mechanisms.

A specific observation highlighted in the report states that the process of capturing all event-based UPSI information was recently initiated by the Company Secretary. Consequently, the certification notes that while the infrastructure is in place, the active recording of such information is a recent development. The company clarified that no information shared during the engagement period was tagged as UPSI.

The engagement was conducted online, relying on details, documents, and representations provided by the management. The certification explicitly limits its scope to the maintenance of the SDD and does not cover other compliances under the Prohibition of Insider Trading Regulations. The auditor relied on the company's internal classification of information as UPSI for the purpose of this review.

Owais Metal and Mineral Processing Limited reported a sharp decline in financial performance for the financial year ended March 31, 2026, with net profit falling 96.5% to ₹165.04 lakh. The company's revenue from operations dropped 42.4% to ₹12291.50 lakh compared to the previous year, significantly impacting its bottom line and operational stability.

The Board of Directors approved the audited standalone financial results for FY26 and the half-year ended March 31, 2026, during a meeting held on May 28, 2026. Statutory auditors Jay Gupta & Associates issued an unmodified opinion on the results, though they highlighted material uncertainties regarding the company's ability to continue as a going concern due to operational suspensions and financial defaults.

Financial Performance

The deterioration in financial metrics was driven by a substantial decrease in turnover and operating margins. Profit before interest, depreciation, and tax for FY26 stood at ₹859.92 lakh, a significant reduction from ₹6698.59 lakh in the previous year. The second half of the financial year was particularly severe, with turnover remaining at only ₹29.86 lakh.

Operational Challenges and Auditor Observations

The auditors noted that the suspension of operations at the company's Udaipur unit was the primary reason for the decline in operating margins. Additionally, the company has defaulted on the repayment of certain loan obligations, and statutory dues relating to income tax for the last two financial years remain unpaid as of the reporting date.

Trade receivables and advances recoverable from related parties stood at ₹5176.82 lakh as of March 31, 2026, up from ₹4396.98 lakh in the prior year. The auditors emphasized that if these conditions persist, they will adversely affect future business operations and financial stability.

Assets and Liabilities

The company's total assets decreased to ₹18160.09 lakh as of March 31, 2026, from ₹19783.03 lakh a year earlier. Current assets contracted significantly to ₹6446.11 lakh, largely due to reductions in trade receivables and inventories. Cash and cash equivalents also dwindled to ₹14.66 lakh from ₹105.03 lakh, reflecting tighter liquidity conditions.