Priya Limited reported a standalone net loss of ₹91.65 lakh for the quarter ended June 30, 2026, as its core business operations remain halted due to blocked bank accounts. The company recorded nil revenue from operations, with total income restricted to ₹0.03 lakh from other sources. Finance costs surged to ₹89.27 lakh, primarily driven by notional interest on non-performing assets, while employee benefits expenses stood at ₹0.75 lakh. The Board of Directors approved the unaudited financial results on August 12, 2026, but statutory auditors JM & Associates issued an adverse opinion, stating that the financial statements may be materially misstated due to pervasive uncertainties surrounding the company's going concern status and unverified interest liabilities.

The company’s financial position remains critical, with total liabilities exceeding total assets by ₹4,555.29 lakh as of June 30, 2026. Indian Bank, Bank of Maharashtra, and Union Bank of India have classified Priya Limited, its promoters, directors, and corporate guarantors as willful defaulters. The management has formally contested this classification. Properties in Mumbai, Kolkata, and Chennai were auctioned by the banks following voluntary possession handover by the company. Additionally, properties of related entities Brent Properties Investment Pvt. Ltd. and Cheshire Properties Investment Pvt. Ltd., invoked under corporate guarantees, were auctioned by Indian Bank for ₹4.56 crore each.

Financial Performance Highlights

The full-year FY26 net profit of ₹434.50 lakh was largely driven by exceptional items amounting to ₹803.39 lakh, arising from non-recurring transactions related to the disposal of property assets by banks. Excluding these exceptional gains, the company incurred a loss from ordinary activities of ₹368.89 lakh for the year. The promoter has pledged 2,00,500 equity shares with Indian Bank as collateral security against credit facilities.

What the Numbers Show

The financial data reveals a complete cessation of operational revenue generation, with the company surviving solely on negligible other income while bearing substantial finance costs. The divergence between the reported net profit for FY26 and the quarterly losses highlights the reliance on one-time asset disposals to mask operational deficits. With nil revenue from operations since the blockage of bank accounts in October 2018, the company’s ability to generate cash flow internally is nonexistent. The accumulation of notional interest—₹89.01 lakh recognized in Q1FY27 alone—further erodes net worth without corresponding cash outflows or verified bank confirmations, creating significant uncertainty around the true liability burden.

Auditor’s Concerns and Compliance Gaps

JM & Associates highlighted several material weaknesses in their review report. The company has not provided relevant bank statements or confirmations for NPA accounts, making it impossible to verify the accuracy of the ₹2,852.83 lakh outstanding interest liability. Furthermore, Priya Limited has made an aggregate provision of ₹3,269.64 lakh for doubtful debts relating to export sales but has not sought approval from the RBI and FEMA for writing off these amounts. The company also failed to appoint a Chief Financial Officer within the prescribed six-month limit following a vacancy in December 2022. Related parties VXL Instruments Limited and VXL Software Solutions Pvt. Ltd. have entered the Corporate Insolvency Resolution Process, potentially impacting future transactions. In an effort to resolve dues, the company deposited ₹1.75 crore in a "No Lien Account" with Indian Bank toward a proposed settlement of ₹22.81 crore.

Priya Limited reported a net profit of ₹434.50 lakh for the year ended March 31, 2026, a turnaround driven by the recognition of exceptional items amounting to ₹803.39 lakh. Despite the annual profit, the company recorded a loss of ₹90.25 lakh for the quarter ended March 31, 2026. The company, which has ceased business operations due to blocked bank accounts, reported nil revenue from operations for both the quarter and the year.

The Board of Directors approved the audited financial results on May 28, 2026. The results were reviewed by the Audit Committee and are subject to an adverse opinion from the statutory auditors, M/s. JM & Associates. The auditors highlighted that the company's accounts have been declared as Non-Performing Assets (NPA) and that total liabilities exceed total assets by ₹4,463.55 lakh, resulting in a negative net worth.

Financial Performance

The exceptional items recognized during the year represent a notional gain arising from the auction of office premises conducted by banks. The company stated that it did not make any tax provision for this auction, relying on legal judgments that capital gains tax is not applicable when assets are appropriated towards security. However, the auditors noted that the precise impact on profitability and net worth cannot be reliably assessed.

Auditor's Observations and Governance

The statutory auditors issued an adverse opinion, citing material uncertainties regarding the company's financial position. They pointed out that the company has not provided relevant bank statements or confirmations for NPA accounts, making it impossible to verify the accuracy of interest provisions amounting to ₹357.05 lakh and outstanding interest liabilities of ₹2,763.82 lakh. Additionally, the auditors noted that the company has not approached regulatory bodies for approval to write off trade receivables amounting to ₹3,953.81 lakh.

In governance developments, the Board re-designated Mrs. Hema Thakur as an Independent Non-Executive Women Director effective May 28, 2026. The Board also reconstituted the Audit Committee, Nomination and Remuneration Committee, and Stakeholders Relationship Committee. The company remains classified as a willful defaulter by Indian Bank, Bank of Maharashtra, and Union Bank of India, a status the management has contested.