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

Sumitkumar Jayantibhai Patel has resigned as Non-Executive Independent Director of Patron Exim Limited effective June 01, 2026, due to other professional commitments. The resignation, which includes stepping down from the positions of Chairman of the Audit Committee, Nomination and Remuneration Committee, and Stakeholders Relationship Committee, was communicated to the stock exchange on May 29, 2026. Patel confirmed there are no other material reasons for his departure other than those stated in his resignation letter.

The company disclosed that the cessation is effective from the close of business hours on June 01, 2026. In his resignation letter, Patel noted that his decision was driven by other professional commitments and expressed gratitude to the board and management for their support during his tenure. He requested the board to record the resignation and complete necessary filings with the Registrar of Companies and stock exchanges as per SEBI (LODR) Regulations, 2015.

Patron Exim stated that it is currently in the process of identifying suitable candidates to fill the vacancy. The appointment of a new director will be intimated to the stock exchange in due course in accordance with regulatory requirements. The resignation was submitted under Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Directorships and Committee Memberships

The filing detailed the other directorships held by the resigning director in listed entities. Patel serves as an Independent Director in three other companies and holds memberships in key board committees.

The disclosure was signed by Narendrakumar Gangaramdas Patel, Managing Director of Patron Exim Limited, on May 29, 2026.