Talwalkars Better Value Fitness Limited reported a net loss of ₹843.85 lakh for the quarter ended December 31, 2020, as per the unaudited standalone financial results reviewed by the auditor. The company recorded total expenses of ₹843.85 lakh for the quarter, primarily driven by depreciation and amortization expenses amounting to ₹843.85 lakh. Revenue from operations remained nil during the period under review.

The financial results for the quarter and nine months ended December 31, 2020, were prepared on a "best-effort basis" by the newly reconstituted management. This approach was necessitated by the complete non-availability of primary books of accounts, original vouchers, and underlying IT servers from the historical period. The company underwent Corporate Insolvency Resolution Process (CIRP) and subsequent liquidation proceedings, during which operational activities were suspended and affairs were managed by the Resolution Professional and the Liquidator.

S K Bhavsar & Co., the statutory auditor, issued a disclaimer of opinion on 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 lack of records. Additionally, 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 Board of Directors approved these financial results at a meeting held on May 30, 2026. The statement includes an emphasis of matter regarding the Hon'ble 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.

Financial Performance Summary

For the nine months ended December 31, 2020, the company reported a net loss of ₹2,531.55 lakh. In comparison, the net loss for the nine months ended December 31, 2019, was ₹3,451.00 lakh. The paid-up equity share capital stood at ₹3,100.49 lakh with a face value of ₹10 per share during the reported period.

Talwalkars Better Value Fitness reported a net loss of ₹843.85 lacs for the quarter ended September 30, 2020, as revenue from operations remained at ₹0.00 lacs due to suspended operational activities. The unaudited standalone financial results for Q2FY21 were reconstructed and submitted by the company's newly reconstituted management following the acquisition of the company as a going concern. The independent auditor, S K Bhavsar & Co., stated that the financial results were prepared on a "best-effort basis" as the current management did not have access to complete books of accounts, original vouchers, or underlying IT servers for the historical period.

The company underwent Corporate Insolvency Resolution Process (CIRP) and subsequent liquidation proceedings during the historical periods. Control was transferred to the Successful Bidder on November 7, 2024, via a Sale Certificate dated January 23, 2025. Due to the complete non-availability of primary records, 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, loans, advances, trade payables, borrowings, and statutory dues. Consequently, the auditor did not express any conclusion on the accompanying statement of unaudited standalone financial results.

Financial Performance

The total income for the quarter stood at ₹0.00 lacs, compared to ₹0.00 lacs in the preceding quarter ended June 30, 2020, and ₹628.10 lacs in the quarter ended September 30, 2019. Total expenses for Q2FY21 were reported at ₹843.85 lacs, remaining consistent with the previous quarter. The company reported a loss before tax of ₹843.85 lacs for the period. The earnings per share (EPS) for continuing operations was a loss of ₹2.72, compared to a loss of ₹2.72 in the preceding quarter.

Regulatory and Legal Context

The financial results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on May 30, 2026. The auditor drew attention to an NCLT Order dated February 26, 2026, pursuant to which 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 auditor noted that their conclusion is not modified in respect of this matter.

The company stated that it is primarily engaged in the business of operating fitness centres. As the business activities fall within a single primary business segment, the disclosure requirements of Ind AS 108 "Operating Segments" are not applicable. The results for the period from September 2019 to December 2024 pertain to the historical period prior to the acquisition, and the reconstituted Board does not take responsibility for the accuracy or completeness of the underlying financial data from this pre-acquisition period.