Vikas Lifecare Limited reported its standalone and consolidated financial results for the year ended March 31, 2026, with statutory auditors KSMC & Associates issuing a qualified opinion. The company reported a standalone profit before tax of ₹7,509.36 lakh for FY26, compared to a loss of ₹355.24 lakh in the previous year. Consolidated profit before tax stood at ₹713.65 lakh, reversing the prior year's loss of ₹1,286.93 lakh. The auditors qualified their opinion primarily due to delays in depositing statutory dues and material related party transactions undertaken without prior shareholder approval.

Qualified Opinion and Key Risks

The auditors highlighted that the company delayed the deposit of statutory dues while continuing business and investment activities, including granting inter-corporate deposits. Insufficient evidence was provided regarding the business rationale for these investments. Additionally, the company entered into material related party transactions with promoter group entities and subsidiaries without obtaining prior shareholder approval as required by Regulation 23 of the SEBI LODR Regulations and Section 188 of the Companies Act, 2013. The company is currently in the process of obtaining these approvals.

Emphasis of Matters

Several material matters drew the auditors' attention. The company entered into a Settlement Agreement dated May 30, 2026, with Hallow Securities Private Limited regarding debenture transactions aggregating ₹52.00 crore. While the principal amount was agreed to be settled, the balance remained unconfirmed at the reporting date. The company also received 51% equity shares of Ebix International Holdings Limited pursuant to a settlement, though requisite regulatory approvals for this cross-border transaction are still pending. Furthermore, the company made loans and investments not in compliance with Section 186(8) of the Companies Act, 2013, due to existing defaults in interest repayments.

Financial Performance and Asset Disposals

The financial results were impacted by one-time events. The company disposed of its entire 51.38% equity shareholding in Shashi Beriwal and Co Private Limited for ₹4.15 crore, recognizing a loss of ₹7.06 crore. The sale of immovable property at Arihant Nagar, Delhi, for ₹3.00 crore resulted in a loss of ₹2.56 crore. An impairment loss of ₹5.00 crore was recognized on an advance given towards the proposed acquisition of Abhhyam Services Private Limited due to a dispute.

Regulatory and Legal Proceedings

Vikas Lifecare faces significant regulatory scrutiny. The Enforcement Directorate issued a provisional attachment order for immovable properties with an approximate purchase value of ₹1,333.84 lakhs in connection with an investigation relating to the Mahadev Online Book matter. The company is contesting this attachment. Additionally, the Securities and Exchange Board of India (SEBI) is conducting an investigation under Section 11C of the SEBI Act, 1992, regarding certain matters concerning the company. The Income Tax Department also issued demand notices aggregating to ₹26.44 crore, which the company is contesting.

Vikas Lifecare Limited reported its audited financial results for the year ended March 31, 2026, on June 24, 2026, revealing a qualified opinion from its statutory auditor. KSMC & Associates highlighted significant concerns, including delays in the deposit of statutory dues and a lack of sufficient audit evidence regarding the business rationale for certain investments and inter-corporate deposits made during the year. The auditor noted that while substantial statutory dues remained outstanding, the company continued its business and investment activities, making it difficult to determine the impact on the financial results.

The audit report further pointed to material related party transactions involving inter-corporate deposits, acquisition of investments, and other dealings with promoter group entities, subsidiaries, and associates. These transactions, which are subject to compliance with Regulation 23 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and Section 188 of the Companies Act, 2013, had not obtained the requisite shareholder approvals as of the date of the results. The company stated it is in the process of obtaining these approvals.

Key Financial Disclosures

The financial results included several material disclosures that impacted the company's reported position. The company entered into a settlement agreement dated May 30, 2026, with Hallow Securities Private Limited regarding debenture transactions aggregating ₹52.00 crore. While the principal amount was agreed to be settled, the balance outstanding remained unconfirmed at the reporting date. Additionally, the company recognized a loss of ₹7.06 crore on the disposal of its entire shareholding in Shashi Beriwal and Co Private Limited and a loss of ₹2.56 crore on the sale of immovable property at Arihant Nagar, Delhi.

Regulatory and Legal Proceedings

The company faces significant regulatory and legal challenges. The Enforcement Directorate issued a provisional attachment order on June 5, 2026, for immovable properties with an approximate purchase value of ₹1,333.84 lakhs in connection with an ongoing investigation. The company is contesting this attachment. Furthermore, the Securities and Exchange Board of India (SEBI) is conducting an investigation under Section 11C of the SEBI Act, 1992, the outcome of which remains uncertain. The company also received income tax demands aggregating ₹26.44 crore, which it has contested.

Compliance and Investment Details

The company's investment in Ebix International Holdings Limited, acquired via a settlement with Eraaya Lifespaces Limited, accounted for a contribution of ₹2,977.27 million. The auditor noted that certain compliances under the Foreign Exchange Management Act, 1999, relating to this overseas direct investment are yet to be completed. Additionally, the company recognized an impairment loss on an advance of ₹5.00 crore given towards a proposed acquisition of Abhhyam Services Private Limited due to a dispute regarding the transfer of shares.

The Audit Committee reviewed the results, and the Board of Directors approved them at a meeting held on June 24, 2026.