Tarini International Reports 22% Profit Increase Amid Auditor Concerns
Tarini International Limited, listed on the SME exchange, reported a 22% increase in standalone profit to Rs 34.09 lakhs for the six months ended September 30, despite flat revenue of Rs 99 lakhs. Auditors raised concerns about investments in loss-making subsidiaries, asset attachment by the Enforcement Directorate, a SEBI penalty under appeal, and pending compounding applications. The company's total assets stand at Rs 3,703.41 lakhs, with management remaining confident about future operations.
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Tarini International Limited , a company listed on the SME exchange, has reported a 22% increase in standalone profit for the six months ended September 30. However, this financial performance comes with several caveats and concerns raised by the company's auditors.
Financial Performance
The company posted a standalone profit of Rs 34.09 lakhs for the half-year period, up from Rs 27.98 lakhs in the corresponding period of the previous year. This represents a significant year-on-year growth of 22%. However, it's important to note that the company's revenue remained flat at Rs 99 lakhs for the period.
| Particulars | H1 FY26 (Rs in lakhs) | H1 FY25 (Rs in lakhs) | Change (%) |
|---|---|---|---|
| Revenue | 99.00 | 99.00 | 0% |
| Profit | 34.09 | 27.98 | +22% |
Auditor Concerns
The company's financial results come with several qualifications and matters of emphasis from the auditors, M. Modi & Associates:
Investment in Loss-Making Subsidiaries: The auditors have raised concerns about the company's investment of Rs 121.59 lakhs in subsidiary companies that have suffered recurring losses. The management maintains that these are long-term investments and no provision for diminution in value is necessary.
Asset Attachment: An asset of the company, a farmhouse, has been provisionally attached by the Enforcement Directorate. The company has obtained a stay against this attachment from the Delhi High Court.
SEBI Penalty: The company is appealing a Rs 505 lakhs penalty imposed by SEBI. The appeal has been admitted by the Supreme Court and is awaiting final hearing.
Compounding Applications: The company has filed compounding applications against show-cause notices received under various sections of the Companies Act, 2013. The outcomes are pending.
Financial Position
As of September 30, Tarini International reported the following key financial metrics:
| Particulars | Amount (Rs in lakhs) |
|---|---|
| Share Capital | 1,299.80 |
| Reserves and Surplus | 1,741.00 |
| Total Assets | 3,703.41 |
| Cash and Cash Equivalents | 53.01 |
Management's Stance
Despite the auditor's concerns, the management of Tarini International remains confident about the company's future operations. They have prepared financial statements on a going concern basis and believe in the long-term value of their investments in subsidiaries.
Investors and stakeholders should carefully consider these factors while assessing the company's financial health and future prospects. The ongoing legal and regulatory matters, as well as the performance of its subsidiaries, may have significant implications for Tarini International's future performance and valuation.
Historical Stock Returns for Tarini International
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -100.00% | -100.00% | -100.00% | -100.00% | -100.00% | -100.00% |
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