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.

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.