Talwalkars Better Value Fitness reported a net loss of ₹505.20 lakh for the quarter ended September 30, 2024, as operational activities remained suspended during the Corporate Insolvency Resolution Process (CIRP) and subsequent liquidation proceedings. The company, which was acquired as a going concern on November 7, 2024, recorded total expenses of ₹505.20 lakh for the quarter, driven primarily by depreciation and amortization costs of ₹505.20 lakh. Revenue from operations remained nil during the period under review.

The financial results were reviewed by the Audit Committee and approved by the Board of Directors on May 30, 2026. However, the independent auditor, S K Bhavsar & Co., issued a disclaimer of opinion on the unaudited standalone financial results. The auditor stated that the current management, which acquired the company via a Sale Certificate dated January 23, 2025, did not have access to complete books of accounts, original vouchers, or underlying servers for the historical period. Consequently, the results were reconstructed on a best-effort basis.

Due to the pervasive scope limitations, the auditor was unable to conduct physical verification of fixed assets and inventories or ascertain potential impairment under Ind AS 36. The verification of historical balances related to trade receivables, cash and bank balances, loans and advances, trade payables, borrowings, and statutory dues could not be independently confirmed. The auditor also noted the inability to evaluate the financial impact of shifting accounting bases during the CIRP and liquidation phases or to verify provisions for taxation and employee benefits.

Financial Performance

The company reported a loss for the half-year ended September 30, 2024, at ₹1,017.70 lakh. Depreciation and amortization expenses for the half-year totaled ₹1,017.70 lakh. The statement of assets and liabilities as of September 30, 2024, showed total assets at ₹29,239.26 lakh, comprising non-current assets of ₹24,933.37 lakh and current assets of ₹4,305.88 lakh. Equity and liabilities stood at ₹29,239.26 lakh, with equity totaling ₹3,319.75 lakh and liabilities amounting to ₹25,919.51 lakh.

Regulatory and Legal Context

The financials reflect the period when the company was under the control of the erstwhile management, the Resolution Professional, and subsequently the Liquidator. The National Company Law Tribunal (NCLT) Relief Order dated February 26, 2026, extinguished all pre-transfer dues and liabilities and cancelled the existing equity share capital. Pursuant to this order, the company adopted Fresh Start Accounting effective from the Transfer Date of November 7, 2024. The reconstituted Board has assessed that the going concern assumption is appropriate for financial results from the quarter ended December 31, 2024, onwards.

Talwalkars Better Value Fitness Limited reported a net loss of ₹512.50 lakh for the quarter ended June 30, 2024, as the company continued to face operational suspensions during its insolvency proceedings. Revenue from operations stood at nil for the period, while total expenses amounted to ₹512.50 lakh, driven primarily by depreciation and amortization costs of ₹512.50 lakh. The financial results, which have been reconstructed on a best-effort basis, were reviewed by the Audit Committee and approved by the Board of Directors on May 30, 2026.

The company underwent significant structural changes during the historical period covered by these results. Following the initiation of the Corporate Insolvency Resolution Process (CIRP) in January 2021 and subsequent liquidation orders in April 2022, the company's operational activities were suspended. Control was transferred from the erstwhile management to the Resolution Professional and then the Liquidator. The company was subsequently sold as a going concern via e-auction, with the Sale Certificate issued on January 23, 2025, and control transferred to the Successful Bidder on November 7, 2024.

S K Bhavsar & Co., Chartered Accountants, issued a disclaimer of conclusion on the unaudited standalone financial results. The auditor stated that the current management, which acquired the company, did not have access to complete books of accounts, original vouchers, or underlying servers for the historical period. Consequently, the auditor was unable to conduct physical verification of fixed assets and inventories, ascertain potential impairment under Ind AS 36, or independently verify historical balances of trade receivables, cash and bank balances, and statutory dues.

The financial impact of the shifting bases of accounting during the CIRP and liquidation phases could not be evaluated due to the absence of comprehensive records. The auditor also noted an inability to ascertain the completeness and accuracy of provisions for taxation, employee benefits, and contingent liabilities. Given these pervasive scope limitations, the auditor expressed no conclusion on the statement of profit and loss, the statement of assets and liabilities, and the cash flow statement.

An emphasis of matter paragraph in the auditor's report highlights the National Company Law Tribunal (NCLT) Order dated February 26, 2026. Pursuant to this order, all pre-transfer dues and liabilities have been permanently extinguished, and the existing equity share capital stands cancelled. Consequently, the company has adopted Fresh Start Accounting effective from the Transfer Date of November 7, 2024. The reconstituted Board of Directors has assessed the going concern status and deemed it appropriate for the preparation of financial results from the quarter ended December 31, 2024, onwards.

Financial Results for Q1FY25