SAB Events & Governance Now Media Limited reported a narrowed net loss of ₹42.07 lakh for the financial year ended March 31, 2026, even as statutory auditors flagged material uncertainty regarding the company's ability to continue as a going concern. The company's total income for the year increased to ₹243.55 lakh from ₹214.81 lakh in the previous year, while total expenditure stood at ₹285.81 lakh. The board of directors approved the audited standalone financial results for the quarter and year ended March 31, 2026, at its meeting held on May 29, 2026.

The statutory auditors, P. Parikh & Associates, issued a qualified opinion on the financial results, highlighting significant financial stress and the initiation of a Pre-Packaged Insolvency Resolution Process (PPIRP) under the Insolvency and Bankruptcy Code, 2016. The auditors noted that current liabilities are 3.78 times the current assets and that the company is unable to service its debt obligations. The PPIRP petition is currently reserved for order by the National Company Law Tribunal, Mumbai bench.

A key audit qualification arose regarding a claim from an unsecured lender amounting to ₹453.47 lakh as of December 17, 2025. The company's books reflect a balance of ₹199.71 lakh for this lender, resulting in a difference of ₹253.76 lakh representing unaccounted interest. The auditors stated that finance costs and current liabilities are understated by this amount as the company has not maintained a bifurcation of the interest pertaining to the current and previous financial years.

Financial Performance

The company reported a net loss of ₹16.88 lakh for the quarter ended March 31, 2026, compared to a profit of ₹13.12 lakh in the preceding quarter ended December 31, 2025. For the full year, the net loss narrowed from ₹73.61 lakh in FY25 to ₹42.07 lakh in FY26. Revenue from operations for the year stood at ₹243.12 lakh, up from ₹173.88 lakh in the previous year.

Balance Sheet Highlights

The company's net worth turned negative at ₹241.33 lakh as of March 31, 2026, compared to a negative net worth of ₹199.27 lakh in the previous year. Total current liabilities increased to ₹328.73 lakh from ₹288.36 lakh, while total current assets rose to ₹87.08 lakh from ₹57.32 lakh. The statement of assets and liabilities indicates that the company has no non-current liabilities, while borrowings under current liabilities remained constant at ₹200.71 lakh.

The auditors' report emphasized that these conditions, along with the substantial losses incurred in previous years and the initiation of insolvency proceedings, indicate material uncertainty regarding the company's ability to continue as a going concern unless it can generate sufficient cash flows from operating activities and raise long-term funds.