Talwalkars Better Value Fitness Limited reported a net loss of ₹816.05 lakh for the quarter ended June 30, 2022, as revenue from operations remained nil. The company disclosed that these unaudited standalone financial results for Q1FY23 were reconstructed on a best-effort basis due to the complete non-availability of primary books of accounts, original vouchers, and underlying IT servers from the historical period. The operational activities of the company were suspended during the period under review, which was managed by the erstwhile management, the Resolution Professional, and subsequently the Liquidator.

The Board of Directors approved the financial results at a meeting held on May 30, 2026. The independent auditor, S K Bhavsar & Co., stated in its review report that it was unable to conduct physical verification of fixed assets and inventories or ascertain potential impairment under Ind AS 36 due to the pervasive scope limitations. Consequently, the auditor did not express any conclusion on the accompanying statement of unaudited standalone financial results.

Financial Performance

The company recorded total expenses of ₹816.05 lakh for the quarter, driven entirely by depreciation and amortization expenses. Other income was nil for the quarter, compared to ₹3.42 lakh in the preceding quarter ended March 31, 2022. The basic and diluted earnings per share (EPS) for the period stood at (2.63).

Corporate Background and Accounting Notes

The financial results pertain to a historical period prior to the acquisition of the company as a going concern. The company underwent Corporate Insolvency Resolution Process (CIRP) initiated on January 11, 2021, and subsequent liquidation proceedings ordered by the Hon'ble NCLT, Mumbai Bench, on April 28, 2022. The company was sold as a going concern via e-auction on August 16, 2024, with the Sale Certificate issued on January 23, 2025, and the transfer of ownership effective November 7, 2024.

Pursuant to the NCLT Relief Order dated February 26, 2026, all pre-transfer dues and liabilities have been permanently extinguished, and the existing equity share capital stands cancelled. The company has adopted Fresh Start Accounting effective from the Transfer Date. The reconstituted Board of Directors noted that the Successful Bidder is not liable for statutory or regulatory non-compliances occurring prior to the Transfer Date.

Talwalkars Better Value Fitness Limited reported a net loss of ₹812.63 lakh for the quarter ended March 31, 2022, as the newly reconstituted management reconstructed financial results on a best-effort basis. The company, which underwent Corporate Insolvency Resolution Process (CIRP) and subsequent liquidation, was acquired as a going concern with control transferred to the Successful Bidder on November 7, 2024. The independent auditor, S K Bhavsar & Co., has disclaimed an opinion on the standalone financial results due to the complete non-availability of primary books of accounts, original vouchers, and underlying IT servers for the historical period.

The financial statements for the quarter ended March 31, 2022, were approved by the Board of Directors on May 30, 2026. The auditor noted that the current management did not have access to complete records, making it impossible to conduct physical verification of fixed assets and inventories or ascertain potential impairment under Ind AS 36. Consequently, the auditor could not independently verify historical balances of trade receivables, cash and bank balances, loans and advances, trade payables, borrowings, and statutory dues. The company stated that these results were reconstructed using fragmented data, previous filings, and summary statements provided by the Liquidator to comply with stock exchange filing requirements.

Financial Performance for Q4FY22

The company reported a total revenue of ₹3.42 lakh for the quarter, consisting entirely of other income, as revenue from operations remained nil. Total expenses for the period stood at ₹816.05 lakh, driven primarily by depreciation and amortization expenses of ₹816.05 lakh. The loss before tax was ₹812.63 lakh, with no tax expenses recorded during the quarter. For the financial year ended March 31, 2022, the net loss was ₹3,260.78 lakh on a total revenue of ₹3.42 lakh.

Assets and Liabilities Position

As of March 31, 2022, the company's total assets were valued at ₹39,683.67 lakh. Non-current assets accounted for ₹35,417.58 lakh, which included property, plant, and equipment of ₹17,754.20 lakh and investments of ₹7,553.00 lakh. Current assets stood at ₹4,266.10 lakh, with cash and cash equivalents amounting to ₹3,041.90 lakh. On the liabilities side, total equity and liabilities were ₹39,683.67 lakh. Equity share capital was recorded at ₹3,100.49 lakh, while other equity stood at ₹8,191.59 lakh. Non-current liabilities totaled ₹25,254.20 lakh, largely comprising borrowings of ₹22,028.20 lakh.

Regulatory and Accounting Disclosures

The auditor drew attention to an NCLT Order dated February 26, 2026, which permanently extinguished all pre-transfer dues and liabilities and cancelled the existing equity share capital. Consequently, the company has adopted Fresh Start Accounting effective from the Transfer Date of November 7, 2024. The NCLT Relief Order also waived liability for the Successful Bidder regarding statutory non-compliances occurring prior to the Transfer Date. The company noted that it was not a going concern during the CIRP and liquidation periods but has assessed that the going concern assumption is appropriate from the quarter ended December 31, 2024, onwards.