Talwalkars Better Value Fitness reported a net loss of ₹816.05 lacs for the quarter ended June 30, 2021, as the company continued to face operational suspensions during its insolvency proceedings. Revenue from operations remained at nil for the period, while total expenses were recorded at ₹816.05 lacs, primarily driven by depreciation and amortization costs of ₹816.05 lacs. The financial results have been reconstructed on a best-effort basis by the newly reconstituted management due to the complete non-availability of primary books of accounts, original vouchers, and underlying IT servers from the historical period.

The company's Board of Directors approved these unaudited standalone financial results on May 30, 2026. The statement was reviewed by the Audit Committee and submitted in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The independent auditor, S K Bhavsar & Co., stated that due to pervasive scope limitations, they were unable to conduct physical verification of fixed assets and inventories or independently verify historical balances of trade receivables, cash and bank balances, and statutory dues. Consequently, the auditor did not express any conclusion on the accompanying statement of unaudited standalone financial results.

During the quarter under review, the company was under the control of the erstwhile defaulting management, the Resolution Professional, and subsequently the Liquidator. The Corporate Insolvency Resolution Process (CIRP) was initiated on January 11, 2021, and the company later entered liquidation proceedings following an NCLT order dated April 28, 2022. Operational activities were suspended during this period. The company was subsequently acquired as a going concern, with control transferred to the Successful Bidder on November 7, 2024, pursuant to a Sale Certificate dated January 23, 2025.

The financial results reflect the impact of the extinguishment of pre-transfer dues and liabilities following an NCLT Order dated February 26, 2026. Consequently, the company has adopted Fresh Start Accounting effective from the Transfer Date of November 7, 2024. The NCLT Relief Order also noted that the Successful Bidder shall not be held liable for statutory or regulatory non-compliances occurring prior to the Transfer Date. The equity share capital of the company, which stood at ₹3100.49 lacs during the reported period, has now been cancelled pursuant to the Sale Certificate and the NCLT Relief Order.

Financial Performance Summary

The company noted that it was not a going concern during the CIRP and liquidation periods from January 2021 to November 2024. The reconstituted Board has assessed that the going concern assumption is appropriate for the preparation of financial results from the quarter ended December 31, 2024, onwards, following the extinguishment of liabilities and the legal protections provided by the NCLT Relief Order.

Talwalkars Better Value Fitness Limited reported a net loss of ₹842.03 lakh for the quarter ended March 31, 2021, as revenue from operations remained nil. The standalone financial results, approved by the Board on May 30, 2026, reflect a period where the company was undergoing Corporate Insolvency Resolution Process (CIRP) and subsequent liquidation. Consequently, operational activities were suspended, and the current management reconstructed the financials on a best-effort basis due to a lack of access to complete books of accounts and original vouchers.

The total expenses for the quarter stood at ₹843.85 lakh, driven primarily by depreciation and amortisation expenses of ₹843.85 lakh. Other income contributed ₹1.82 lakh to the total revenue. For the financial year ended March 31, 2021, the company reported a net loss of ₹3,373.58 lakh on a total revenue of ₹1.82 lakh. In comparison, the previous financial year ended March 31, 2020, recorded a net loss of ₹3,997.46 lakh on a total revenue of ₹947.34 lakh.

Financial Performance

The statement of assets and liabilities as of March 31, 2021, showed total assets at ₹42,944.45 lakh, a decrease from ₹46,318.04 lakh in the previous year. Non-current assets, which include property, plant and equipment, decreased to ₹38,681.78 lakh from ₹42,057.18 lakh. Equity and liabilities stood at ₹42,944.45 lakh, with equity share capital recorded at ₹3,100.49 lakh. Borrowings amounted to ₹22,028.20 lakh under non-current liabilities.

Auditor's Disclaimer

S K Bhavsar & Co., the statutory auditor, issued a disclaimer of conclusion on the review of the financial results. The auditor stated they were unable to conduct physical verification of fixed assets and inventories or ascertain potential impairment under Ind AS 36 due to the complete non-availability of primary books of accounts and IT servers. Furthermore, the auditor could not independently verify historical balances of trade receivables, cash and bank balances, loans, and statutory dues. The pervasive scope limitations prevented the auditor from evaluating the financial impact of shifting accounting bases during the CIRP and liquidation phases.

Regulatory Context

The financial results pertain to a historical period prior to the company's acquisition as a going concern. The CIRP was initiated on January 11, 2021, and the company subsequently entered liquidation 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. An NCLT Relief Order dated February 26, 2026, extinguished all pre-transfer dues and liabilities and cancelled the existing equity share capital, leading to the adoption of Fresh Start Accounting effective November 7, 2024.