Triumph International Finance Reports Profit Amid Regulatory Hurdles

Triumph International Finance India Limited has reported a standalone net profit of Rs 98.33 lacs for the quarter ended June 30, despite facing significant regulatory challenges. The company's financial performance shows an improvement from the Rs 82.78 lacs profit recorded in the same quarter of the previous year.

Financial Highlights

The company's total income for the quarter reached Rs 107.81 lacs, entirely derived from other income sources, as revenue from operations remained nil. On a consolidated basis, the net profit stood at Rs 98.27 lacs for the same period.

Regulatory Challenges

Triumph International Finance faces significant regulatory hurdles that cast doubt on its operational capabilities:

1. The Securities and Exchange Board of India (SEBI) has cancelled the company's registration as a stock broker.
2. The National Stock Exchange (NSE) has declared the company a defaulter.
3. The company's appeal against these actions has been dismissed by the Supreme Court.

Auditor's Concerns

The company's auditors, Rawat & Associates, have raised several qualifications in their limited review report:

1. Going Concern: The auditors question the company's ability to continue as a going concern due to the cancellation of its stock broker registration and the declaration as a defaulter by NSE.

2. Debt Recovery: Punjab National Bank has filed an application with the Debt Recovery Tribunal seeking recovery of a loan amounting to Rs 46.76 crores. The company has not recognized interest on this loan since April 1, 2011.

3. Doubtful Recoveries: The auditors highlight doubtful debt recoveries, including Rs 3.56 crores from Panther Investrade Limited.

4. Unresolved Legal Matters: The Company Law Board had restrained the company's directors from functioning in 2008, with partial relaxation granted in 2010. However, the matter is still pending final disposal.

5. Asset Ownership: The company's demat account includes shares and securities valued at Rs 12.09 crores, but the ownership details remain unclear.

Management's Stance

Despite these challenges, the company's management continues to prepare accounts on a going concern basis, expressing intent to resume share trading business. However, they acknowledge technical obstacles preventing immediate commencement of operations.

The Board of Directors approved these unaudited financial results in a meeting held on August 13. The company maintains that its financial statements are prepared in accordance with Indian Accounting Standards (Ind-AS) as prescribed under the Companies Act, 2013.

As Triumph International Finance navigates through these regulatory and financial challenges, the company's future operations and financial stability remain uncertain. Investors and stakeholders will likely keep a close watch on how the company addresses these issues in the coming quarters.