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.

Talwalkars Better Value Fitness Limited reported a net loss of ₹816.05 lakh for the quarter ended December 31, 2021, as operational activities remained suspended during the Corporate Insolvency Resolution Process (CIRP) and subsequent liquidation proceedings. The company recorded zero revenue from operations for the quarter, with total expenses amounting to ₹816.05 lakh, driven solely by depreciation and amortisation costs of ₹816.05 lakh. For the nine months ended December 31, 2021, the net loss stood at ₹2,448.15 lakh.

S K Bhavsar & Co., the statutory auditor, 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 IT servers for the historical period under review. Consequently, the financial results were reconstructed on a best-effort basis, and the auditor was unable to conduct physical verification of fixed assets and inventories or ascertain potential impairment under Ind AS 36.

The auditor highlighted pervasive scope limitations, including the inability to independently verify historical balances of trade receivables, cash and bank balances, loans and advances, trade payables, borrowings, and statutory dues. The review report also noted that the framework for Internal Financial Controls and routine SEBI LODR compliances were not fully operational during the transitional phase involving the erstwhile management, the Resolution Professional, and the Liquidator.

The company's Board of Directors approved these financial results at a meeting held on May 30, 2026. The filing follows an NCLT Relief Order dated February 26, 2026, which extinguished all pre-transfer dues and liabilities and cancelled the existing equity share capital. Pursuant to this order, the company has adopted Fresh Start Accounting effective from the Transfer Date of November 7, 2024.

The statement of financial results indicates that the company 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 acquisition by the Successful Bidder.

Financial Summary for Q3FY22