Shivom Investment & Consultancy Limited reported a net loss of ₹48.62 lakh for the financial year ended March 31, 2024, narrowing from a loss of ₹4,900.70 lakh in the preceding year. Revenue from operations declined significantly to ₹16.55 lakh from ₹350.18 lakh in FY23. The company’s auditors, M/s. S Parth & Co., issued a qualified opinion on the standalone financial statements, citing material weaknesses in internal financial controls and uncertainty regarding the company's ability to meet its liabilities.

Qualified Opinion and Compliance Issues

The audit report highlights several material irregularities, including the absence of gratuity provisions in violation of Accounting Standard 15. The company has undergone significant restructuring following a Resolution Plan approved by the National Company Law Tribunal (NCLT) in August 2025, but the implementation of certain actions remains pending. Consequently, the accounting impact of this restructuring on share capital and earnings per share has not been fully determined. Additionally, the financial statements were prepared under Accounting Standards rather than the applicable Indian Accounting Standards (Ind AS), a departure from the prescribed framework.

Financial Performance

The company’s total expenses for FY24 stood at ₹65.17 lakh, a sharp reduction from ₹5,252.39 lakh in the previous year, primarily driven by a decrease in other expenses which included a bad debt write-off of ₹5,090.16 lakh in FY23. Finance costs for the year amounted to ₹61.40 lakh. The basic and diluted earnings per share for FY24 was reported as a loss of ₹0.07, compared to a loss of ₹7.01 in the prior year.

Balance Sheet and Cash Flows

As of March 31, 2024, the company’s total assets stood at ₹3,833.06 lakh, slightly up from ₹3,822.03 lakh in the previous year. Long-term borrowings increased to ₹3,002.50 lakh from ₹2,938.04 lakh. Cash and cash equivalents plummeted to ₹0.13 lakh from ₹514.59 lakh at the end of FY23. The cash flow statement indicates a net decrease in cash and cash equivalents of ₹514.46 lakh during the year, largely due to net cash used in operating activities amounting to ₹821.41 lakh.

Auditor’s Observations on Liabilities and Controls

The auditor noted that the company has not been regular in depositing undisputed statutory dues, with outstanding Tax Deducted at Source (TDS) of ₹15.53 lakh and income tax of ₹2.43 lakh. Furthermore, the company granted multiple loans totaling ₹43.72 crore during the year without specifying repayment terms. The auditor expressed significant doubt regarding the company’s ability to continue as a going concern, stating that material uncertainty exists about meeting liabilities falling due within one year from the balance sheet date. The report also identified the absence of an internal audit system commensurate with the company's size and nature of business.

Shivom Investment & Consultancy Limited has scheduled its 34th and 36th Annual General Meeting (AGM) on July 7, 2026, at its registered office in Mumbai. The meeting will be held to adopt the audited standalone financial statements for the financial years 2023-24 and 2025-26. The company has fixed June 29, 2026, as the record date to determine shareholder eligibility for the AGM and remote e-voting.

Key Resolutions

Shareholders will consider the appointment of M/s. Patel Soni Shah & Co, Chartered Accountants, as Statutory Auditors for a term of five years from FY27 to FY31. The company also seeks approval to appoint Ms. Avani Vishnubhai Patel and Ms. Kajal Ankitbhai Pambhar as Independent Directors for a period of two years. Additionally, the AGM will consider the re-appointment of Kuldeep Bharatbhai Khachar as Director, liable to retire by rotation.

Governance and Borrowing

The company proposes to adopt new Memorandum and Articles of Association to align with the Companies Act, 2013. Shareholders will also vote on special resolutions to approve borrowing limits up to ₹500 crore and investment, loan, and guarantee limits up to ₹200 crore under Sections 180(1)(c) and 186 of the Companies Act, 2013. The remuneration terms for Managing Director Mr. Ravi Dhirajlal Vagadiya, appointed by the NCLT, will also be ratified.

E-Voting and Book Closure

Remote e-voting will commence on July 4, 2026, at 9:00 a.m. and conclude on July 6, 2026, at 5:00 a.m. The book closure period is from June 29, 2026, to July 7, 2026. The notice was submitted to BSE Limited under scrip code 539833 pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.