Talwalkars reports Q4FY24 loss amid auditor disclaimer
Talwalkars Better Value Fitness Limited reported a net loss of ₹1,153.10 lakh for Q4FY24, with zero revenue from operations and expenses driven by depreciation and liquidation costs. The auditor issued a disclaimer of opinion due to the unavailability of primary records, preventing verification of assets and liabilities. Following its acquisition and an NCLT order, the company has extinguished pre-transfer liabilities and adopted Fresh Start Accounting.
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Talwalkars Better Value Fitness Limited reported a net loss of ₹1,153.10 lakh for the quarter ended March 31, 2024, as the company continues to navigate the aftermath of its Corporate Insolvency Resolution Process (CIRP) and subsequent acquisition. The financial results, which show zero revenue from operations, were reconstructed by the newly reconstituted management on a best-effort basis due to the non-availability of primary books of accounts and original vouchers from the historical period under review. The independent auditor has issued a disclaimer of opinion on these standalone financial results, citing pervasive scope limitations that prevented the verification of assets, liabilities, and statutory dues.
Auditor Disclaimer and Data Limitations
S K Bhavsar & Co., the statutory auditor, stated in its review report dated May 30, 2026, that it was unable to conduct physical verification of fixed assets and inventories or ascertain potential impairment under Ind AS 36. The firm noted that the current management, which acquired the company via a Sale Certificate dated January 23, 2025, lacked access to underlying IT servers and comprehensive records. Consequently, the auditor could not independently verify trade receivables, cash and bank balances, loans, advances, trade payables, borrowings, or statutory dues. The report also highlighted the inability to evaluate the financial impact of shifting accounting bases during the CIRP and liquidation phases or confirm the accuracy of provisions for taxation and employee benefits.
Financial Performance for Q4FY24
The statement of audited standalone financial results reveals a total expense of ₹1,228.90 lakh for the quarter, driven primarily by depreciation and amortisation expenses of ₹815.60 lakh and liquidation expenses of ₹412.87 lakh. Other income for the period stood at ₹75.80 lakh, contributing to a total net revenue of ₹75.80 lakh. The company reported a basic and diluted loss per share of ₹0.37 for the quarter. For the year ended March 31, 2024, the net loss widened to ₹3,677.70 lakh, with total expenses for the year amounting to ₹3,753.50 lakh.
Balance Sheet and Cash Flow
The audited statement of assets and liabilities as of March 31, 2024, shows total assets at ₹30,256.96 lakh, a decrease from ₹36,403.55 lakh in the previous year. Non-current assets declined to ₹25,951.07 lakh from ₹31,981.62 lakh, primarily due to a reduction in property, plant, and equipment. Equity and liabilities stood at ₹30,256.96 lakh, with equity share capital recorded at ₹3,100.49 lakh. The cash flow statement for the year ended March 31, 2024, indicates a net decrease in cash and cash equivalents of ₹122.64 lakh, bringing the closing balance to ₹3,074.78 lakh.
Regulatory Background and Fresh Start Accounting
The company underwent CIRP initiated on January 11, 2021, followed by liquidation proceedings ordered by the Hon'ble NCLT, Mumbai Bench, on April 28, 2022. Operational activities were suspended during this period. The company was subsequently sold as a going concern, with control transferred to the Successful Bidder on November 7, 2024. Pursuant to an NCLT Order dated February 26, 2026, 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 Board of Directors approved these financial results on May 30, 2026.
| Financial Metrics for Q4FY24 | (₹ in Lakh) |
|---|---|
| Total Revenue (Net) | 75.80 |
| Total Expenses | 1,228.90 |
| Net Profit/(Loss) | (1,153.10) |
| Basic EPS | (0.37) |
| Depreciation & Amortisation | 815.60 |
| Liquidation Expenses | 412.87 |
What is the management's strategic roadmap to resume full-scale operational activities and generate revenue following the suspension during the insolvency period?
How does the company intend to resolve the pervasive data limitations and lack of historical records to ensure clean audits in future reporting periods?
What specific capital allocation or restructuring plans are in place to address the high depreciation and amortisation expenses that are currently driving net losses?
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