Infronics Systems Limited has disclosed that a second bank account has been frozen following directions from investigating authorities. The latest development involves Axis Bank placing a debit freeze on the company's account, adding to the ICICI Bank account freeze disclosed on December 31, 2025.

Second Bank Account Freeze

Axis Bank has imposed a debit freeze on Infronics Systems' bank account pursuant to directions received from investigating authorities. The freeze allows credit entries but restricts debit transactions, pending further instructions from authorities or orders from a competent court. The company's CFO confirmed this development through official email communication on January 02, 2026.

Background: FIR and Initial Freeze

The developments stem from a criminal complaint filed by Mr. Mudunuru Madhusudhan Raju, which resulted in an FIR being registered with the P. M. Palem Police Station in Vishakhapatnam City. The FIR targets the company's directors, promoters, and Chief Financial Officer in connection with allegations related to a commercial dispute.

Financial Impact Assessment

The company has provided an updated assessment of the financial implications following the second bank account freeze. With two bank accounts now under debit freeze, the company faces potential cash flow constraints that could affect routine business transactions.

• The debit freeze restricts access to funds for routine business operations
• Temporary cash flow constraints may result from the restrictions
• The company is unable to quantify the exact financial impact at present
• No financial liability has been determined or crystallized against the company
• The underlying matter was previously disclosed as a contingent liability

Company Response Strategy

Infronics Systems is actively responding to the concerned authorities and preparing to take necessary steps based on further communications and directions. The company plans to seek appropriate relief through legal or procedural measures as required under applicable law.

The Board of Directors approved this latest disclosure on January 03, 2026, maintaining compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Company Secretary & Compliance Officer Shubhi Singhal signed the disclosure following proper internal verification processes.

Regulatory Compliance

The company continues to demonstrate adherence to disclosure protocols under SEBI regulations. The Company Secretary obtained credible and verifiable internal communication from the CFO before making the regulatory filing, ensuring transparency with stakeholders regarding these significant developments.

Infronics Systems Limited, a provider of IT software products, has reported a net loss of ₹21.44 lakhs for the quarter ended September 30, 2025. The company faces significant challenges, including a major legal dispute and the absence of operational revenue following the conclusion of its contract with BSNL.

Financial Performance

The company's financial results for the quarter paint a challenging picture:

The company's revenue has significantly decreased compared to the previous financial year, primarily due to the conclusion of its major contract with BSNL for providing SMS services to various banks.

Legal Challenge

Infronics Systems is embroiled in a significant legal dispute with Mudunuru Limited. The details of the dispute are as follows:

• Mudunuru Limited has claimed ₹12.05 crores from Infronics Systems
• The claim includes ₹8.60 crores as principal and ₹3.44 crores as interest
• The claim is allegedly based on pro-forma invoices dated between March 2023 and April 2025

Infronics Systems has denied any liability in this matter. The company has obtained a legal opinion supporting its position and, based on this, has concluded that no provision is required under the applicable accounting standards (Ind AS 37).

Auditor's Concerns

The company's auditors, R. Subramanian and Company LLP, have expressed a qualified conclusion in their limited review report. They have highlighted two main areas of concern:

1. The potential material impact of the legal dispute with Mudunuru Limited
2. Material uncertainty related to the company's ability to continue as a going concern

The auditors note that the company is not currently generating any revenue from its operations, following the conclusion of its major contract with BSNL.

Management's Response

Despite these challenges, the management of Infronics Systems has stated that the company has sufficient cash balances to settle its current liabilities and those estimated to arise in the next twelve months.

The company is also exploring and researching the development of a new technological product, although specific details have not been provided.

Conclusion

Infronics Systems Limited faces a critical juncture in its operations. The combination of the legal dispute, lack of current operational revenue, and the auditor's concerns about its ability to continue as a going concern present significant challenges for the company. Stakeholders will be closely watching how the management navigates these issues and implements its plans for future growth and sustainability.