Patron Exim reported a net loss of ₹108.96 lakh for the financial year ended March 31, 2026 (FY26), reversing a profit of ₹7.10 lakh in the previous year. The company’s revenue from operations declined marginally to ₹2,420.85 lakh from ₹2,436.42 lakh in FY25.

The Board of Directors approved the audited standalone financial statements during its meeting on September 8, 2026. The company has scheduled its fourth Annual General Meeting (AGM) for September 30, 2026, to be held via video conferencing.

Financial Performance

The company’s total revenue stood at ₹2,429.52 lakh in FY26, compared to ₹2,467.94 lakh in FY25. Other income dropped significantly to ₹8.67 lakh from ₹31.52 lakh in the prior year. The loss before tax was ₹108.46 lakh, with a current income tax expense of ₹0.50 lakh.

Auditor Qualifications and Compliance Issues

The statutory auditor, M/s. J. M. Patel & Bros, issued a qualified opinion on the financial statements. Key concerns included:

• Related Party Loans: Loans and advances to related parties increased to ₹28.78 crore from ₹16.41 crore in FY25. These loans bear no interest and lack formal agreements, raising recovery risks.
• Unverifiable Revenue: Sales of ₹23.72 crore up to September 30, 2025, could not be verified due to missing transportation evidence, godown details, or loading/unloading expenses. No physical stock verification was conducted.
• Tax Dues: The company has unpaid income tax dues of ₹49.88 lakh and TDS of ₹34.45 lakh. Additionally, an online outstanding demand of ₹15.37 crore for income tax and ₹2.61 crore for interest for AY2023-24 remains unappealed and undisclosed as a contingent liability.
• Internal Controls: The company failed to appoint an internal auditor as mandated by Section 138 of the Companies Act, 2013. It also did not implement accounting software with a non-disable audit trail, violating Section 128(5).

Corporate Actions and AGM Details

The Board appointed M/s. A. Shubhangi & Associates as the secretarial auditor for five consecutive financial years (FY27 to FY31). This appointment requires shareholder approval at the upcoming AGM.

The fourth AGM will be held on September 30, 2026, at 4:00 pm via Video Conferencing/Other Audio-Visual Means. The deemed venue is the registered office in Ahmedabad. Shareholders holding shares in dematerialized form as on September 23, 2026, are eligible to vote. Remote e-voting will be open from September 27, 2026, at 9:00 am to September 29, 2026, at 5:00 pm.

Key Ratios

The current ratio decreased to 4.69 from 7.37 in FY25, driven by an increase in current liabilities. The debt-equity ratio improved to 0.05 from 0.13 due to a decrease in overall loan borrowings. Return on equity turned negative to -2.86% from 0.18% in the previous year.

Patron Exim Limited reported a net loss of ₹108.96 lakh for the financial year ended March 31, 2026, a significant decline from the net profit of ₹7.10 lakh recorded in the previous year. The company's total revenue for FY26 stood at ₹2,429.52 lakh, while total expenditure rose to ₹2,537.98 lakh. The statutory auditors, J. M. Patel & Bros., issued a qualified opinion on the financial results, highlighting several material irregularities including increased related party transactions and non-compliance with statutory requirements.

Audit Qualifications and Internal Controls

The auditors flagged a substantial increase in loans and advances to related parties, which rose from ₹16.41 crore in the previous year to ₹28.78 crore in FY26. The report noted that these advances carry a risk of default and generate no income. Additionally, the company failed to implement accounting software with a non-disable audit trail as mandated by Section 128(5) of the Companies Act, 2013, preventing auditors from assessing the reliability of the audit trail. The company also failed to appoint an internal auditor during the year, exposing it to increased operational and regulatory risks.

Financial Performance and Liquidity

Patron Exim faced severe liquidity constraints during the year, reflected in a negative cash flow from operating activities of ₹201.25 lakh. The company reported cash losses of ₹99.51 lakh after adjustments. Advances to creditors amounting to ₹5.61 crore were deemed doubtful of recovery, and tax deducted at source (TDS) of ₹34.45 lakhs remained unpaid to the government. The auditors also noted an outstanding income tax demand of ₹15.37 crore and an interest demand of ₹2.61 crore for the assessment year 2023-24, which the company has not provided for as a contingent liability.

Asset Quality and Contingent Liabilities

The auditors raised concerns over inventory valuation, citing a closing stock of ₹1.02 crore for which no physical verification was conducted and which is not insured. Investments totaling ₹8.84 crore made to two parties, including related parties, have yielded no income. The company is also contesting a GST demand of ₹21.98 crore from FY 2017-18 against an erstwhile firm, Arvind Traders. The management stated that these qualifications are procedural in nature and that it has initiated corrective measures to strengthen compliance and documentation.

Financial Results for FY26