Board approves Q2 FY27 results, allots FCCB shares; auditors do not express a conclusion
Board met Oct 24, 2026 and approved un-audited standalone & consolidated Q2 FY27 results.
By ScoutQuest · · 2 min read
| Line item | Latest | Year ago | YoY | Prev qtr | QoQ |
|---|---|---|---|---|---|
| Revenue from operations | 2,383.40 | 2,502.82 | −4.8% | 2,965.91 | −19.6% |
| Total income | 2,463.19 | 2,536.75 | −2.9% | 2,968.06 | −17% |
| Profit before tax | 51.51 | 42.77 | +20.4% | 56.07 | −8.1% |
| Profit after tax | 38.12 | 31.52 | +20.9% | 41.49 | −8.1% |
| Total comprehensive income | 38.12 | 31.52 | +20.9% | 41.49 | −8.1% |
| Basic EPS | 0.002 | 0.002 | 0% | 0.002 | 0% |
- Total income YoY
- 2,536.75 (−2.9%)
- Profit after tax YoY
- 31.52 (+20.9%)
- Period
- September 30, 2026
Auditor's review
Conclusion: Disclaimer of conclusion
- Auditor states it could not obtain sufficient evidence and does not express a conclusion, though the conclusion paragraph uses unmodified wording.
- No ECL assessment on loans receivable of Rs. 735.13/- Lakhs and trade receivables of Rs. 2943.89/- Lakhs with significant increase in credit risk; unquoted investments of Rs. 87.39/- Lakhs not fair valued.
- Subsidiary Kavit Edible Oil Limited suspended operations since March 2019, negative net worth; exposure Rs. 127.70/- Lakhs; substantial doubt about going concern.
- Emphasis of matter: direct tax litigations and statutory compliance demands considered contestable; no adjustment made.
Notes to the results
- During the quarter the Company allotted 34,07,14,286 equity shares of Re. 1/- each at a premium of Rs. 0.40/- per share on conversion of 50 FCCBs.
What the board approved
The board met on October 24, 2026 and approved the un-audited standalone and consolidated financial results for the quarter ended September 30, 2026, along with the Limited Review Report of the statutory auditors.
The company also allotted 34,07,14,286 equity shares of face value Re. 1/- each at a premium of Rs. 0.40/- per share, pursuant to the conversion of Foreign Currency Convertible Bonds (FCCBs). This is an issue of new shares against bonds, so it adds to the number of shares in issue.
The auditor did not express a conclusion
The Limited Review Report by Tejas K. Soni & Company states that, due to the matters described, it was not able to obtain sufficient evidence to provide a basis for a conclusion, and therefore does not express a conclusion on the statement — for both the standalone and consolidated results. The points recorded:
- Loans receivables of Rs. 735.13 Lakhs and Trade Receivables of Rs. 2943.89 Lakhs are described as showing a significant increase in credit risk, where no assessment for expected credit loss was made under Ind AS 109 and management considers the balances good and recoverable.
- Investments in unquoted equity shares of Rs. 87.39 Lakhs, for which the company was unable to determine fair valuation.
- Exposure of Rs. 127.70 Lakhs in equity and unsecured loan to subsidiary Kavit Edible Oil Limited, whose manufacturing operations have been suspended since March 2019 and which has negative net worth; the auditor says this raises substantial doubt about the subsidiary's ability to continue as a going concern.
- The auditor also records that it observed several instances of material misstatements and non-compliance with the applicable financial reporting framework, including improper valuation of financial instruments and investments, inadequacies in recognition and measurement of provisions, and missing documentation.
Emphasis of Matter
The company is involved in certain direct tax litigations and statutory compliance matters arising from assessment and appellate proceedings for various years. Based on management assessment and legal advice, these are considered contestable and no material adjustment is considered necessary; the auditor's opinion is not modified in respect of these matters.
Results at a glance (standalone, un-audited)
- 'Revenue from operations' was Rs. 2,383.40 lakh for the quarter ended September 30, 2026.
- 'Net Profit for the period' was Rs. 38.12 lakh for the same quarter.
What a no-conclusion review means for a retail reader
A review is lighter than a full audit, and here the auditor is saying it could not complete even that review to its own satisfaction on the points listed. Investors generally treat such a statement as a flag on the reliability of the reported numbers, to be weighed alongside the profit figures above.
In short: the quarter's results were approved and new shares were issued on FCCB conversion, while the auditor's report carries a no-conclusion statement built around receivables, valuation of investments and a weak subsidiary.
Also from Evexia Lifecare
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19 Oct 2026
Company Secretary & Compliance Officer appointed, effective October 14, 2026
13 Oct 2026
Board decides to appoint Company Secretary & Compliance Officer (KMP) from 14 October 2026
13 Oct 2026
More numbers
- Loans receivables flagged by auditorRs. 735.13/- Lakhs
- Trade Receivables flagged by auditorRs. 2943.89/- Lakhs
- Investments in unquoted equity sharesRs. 87.39/- Lakhs
- Exposure to subsidiary Kavit Edible Oil LimitedRs. 127.70/- Lakhs
- Equity shares allotted on FCCB conversion34,07,14,286
- Premium per share on allotmentRs. 0.40/-
- Standalone Revenue from operations, Q22,383.40 (Rs. in Lakhs)
- Standalone Net Profit for the period, Q238.12 (Rs. in Lakhs)
- Total income, latest quarter2,463.19 (Rs. In Lakhs)
- Total income, year-ago quarter2,536.75 (Rs. In Lakhs)
- Total income, previous quarter2,968.06 (Rs. In Lakhs)
- Total comprehensive income, latest quarter38.12 (Rs. In Lakhs)
- Total comprehensive income, year-ago quarter31.52 (Rs. In Lakhs)
- Total comprehensive income, previous quarter41.49 (Rs. In Lakhs)
- Profit after tax, latest quarter38.12 (Rs. In Lakhs)
- Profit after tax, year-ago quarter31.52 (Rs. In Lakhs)
- Profit after tax, previous quarter41.49 (Rs. In Lakhs)
- Revenue from operations, latest quarter2,383.40 (Rs. In Lakhs)
- Revenue from operations, year-ago quarter2,502.82 (Rs. In Lakhs)
- Revenue from operations, previous quarter2,965.91 (Rs. In Lakhs)
- Profit before tax, latest quarter51.51 (Rs. In Lakhs)
- Profit before tax, year-ago quarter42.77 (Rs. In Lakhs)
- Profit before tax, previous quarter56.07 (Rs. In Lakhs)
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