| Textual Information(1) |
Notes: 1. The above unaudited standalone and consolidated financial results have been reviewed by the Audit Committee and approved by the Board of Directors in their meeting held on August 13, 2026. 2. The standalone and consolidated financial results of the Company for the quarter ended June 30, 2026 have been subject to limited review by its Statutory auditors. 3. The Company has prepared these Standalone and Consolidated financial results in accordance with Companies (Indian Accounting Standard) Rules, 2015 as amended as prescribed under Section 133 of the Companies Act, 2013 (the Act) read with the relevant rules issued thereunder as amended and the other accounting principles generally accepted in India. 4. The Board of Directors in its meeting held on May 23, 2024, has approved for the merger of Company’s wholly owned subsidiaries i.e., Kelbuzz Trading Private Limited, SKG Terra Promenade Private Limited, SLPKG Estate Holdings Private Limited and Luxquisite Parkland Private Limited with the Holding company. The Company has filed the application of Merger before Hon’ble National Company Law Tribunal, Bengaluru Bench (“NCLT Bengaluru Bench”) on October 31, 2024. Subsequently the merger was approved and the order was passed on April 30, 2026 by the Hon’ble NCLT Bengaluru Bench. The effective date of Merger was April 1, 2024. Accordingly the effect of merger was given in the financial results during the year ended March 31, 2026. 5. The net worth (after excluding revaluation reserve) of the group in terms of the consolidated financial statements as at June 30, 2026 consisting of the Company, its subsidiary and its associate is eroded. The company has repaid all term loans which were restructured under JLF mechanism. Also the company is in advance stage for monetization of its immovable property, situated at Gokul Road, Hubballi (refer note - 7) which will improve the working capital and in turn improve the performance in the forthcoming periods. The company is confident that this funding will have a positive impact on the performance and net worth. Accordingly your directors have prepared these financial results of the company on the basis that it is a going concern and that no adjustments are considered necessary to the carrying value of assets and liabilities. 6. The Company has filed before the honorable Supreme Court, special leave petition (SLP) in respect of resale tax penalty demand of Rs.527 lakhs on its erstwhile subsidiary Kaytee Switchgear Limited (since merged with the parent company) and confirmed by the honorable High Court of Karnataka. This SLP has been admitted by the honorable Supreme Court. The Company believes based on legal advice / internal assessment that the outcome of the contingency will be favorable, that loss is not probable and no provision is required to be recognized in this respect. 7. On October 03, 2022, the Company has entered into an Agreement to Sell (ATS) a part of its immovable property, situated at Gokul Road, Hubballi admeasuring 31 Acres 24 Guntas for a consideration of Rs.9,512 lakhs, on such terms and conditions as set out in the ATS. As per the ATS, permission for Change of land use was to be obtained by the Company from the concerned authorities. Accordingly, the Company had filed an application with Hubli Dharwad Urban Development Authority (HUDA) for change of Land use. The HUDA had directed the Company to submit PT Sheet and 11e Sketch issued by the Survey department. After submission and numerous follow-ups with the concerned authorities, as there was delay in completing the required process by these authorities, the Company approached the Honourable High Court of Karnataka, Dharwad Bench for relief and has obtained necessary directions which is imparted to the Survey department. Accordingly, the PT sheet has been arranged and the file is with HUDA to complete the change of land use procedure. On August 03, 2024, HUDA has recommended the Company's application for change of land use to Commissioner Urban Development and Authority and Urban and Rural Planning Commission for their approval. The Principal Secretary, Urban Development Department refused to pass orders for change of land use from industrial to residential purpose on the ground of alleged violation of the provisions of the Urban Land Ceiling Act, 1976, despite the recommendation of the Hubli-Dharward Urban Development Authority. In view of the same, Company filed writ petition at Dharwad bench High court, Karnataka challenging the actions of the State Government and further sought appropriate directions. The Hon’ble High Court of Karnataka by its order dated February 25, 2026 was pleased to allow the writ petition filed by the Company and directed the Principal Secretary, Urban Development Department to issue necessary orders for change of land use within 4 weeks from the date of receipt of the copy of the order. Consequently, on March 09, 2026, the Company submitted its representation for the execution of the order. Despite a lapse of over a period of 3 months from the date of the order, Principal Secretary, Urban Development Department, Government of Karnataka has not issued the order for change of land use. Being aggrieved, the Company has filed a contempt petition on June 02, 2026 before the Hon’ble High Court of Karnataka – Dharwad Bench. Meanwhile, The Urban Development Department, Government of Karnataka has also filed an Writ appeal on April 07, 2026 at “Divisional Bench High Court of Karnataka – Dharwad Bench” against the order dated February 25, 2026. The Matter is pending before the Honourable High Court of Karnataka. 8. On March 20, 2024 the Company has entered into an Agreement to Sell part of its immovable property, situated at Gokul Road, Hubbali, admeasuring 1.06 acre equivalent for a consideration of Rs. 300 lakhs. on such terms and conditions as set out in the Agreement to sell. On December 26, 2025 Company has handed over the possession of the scheduled property on receipt of entire sale consideration and executed irrevocable Power of Attorney in favour of purchaser for the purpose of obtaining all permissions and approval from the necessary government authorities and to execute the Sale Deed in favour of the purchaser in as much as it concerns the schedule property as described in the Registered Agreement to sell. 9. On July 16, 2026, board of Directors of the Company has approved to issue upto 34,68,007 (Thirty four lakh sixty eight Thousand Seven) equity shares at a floor price of Rs. 115.34 (Rupees one hundred and fifteen and thirty four paise only) each aggregating upto Rs. 40,00,00,000/- (Rupees Forty crore only) to Kirloskar Power Equipments Limited, a promoter group Company by way of preferential issue subject to necessary approval of the members of the Company in ensuing general meeting and other regulatory authorities, as maybe applicable. 10. Other income for the year ended March 31, 2026 includes profit on receipt on full consideration towards 1.06 acres property situated at Gokul road, Hubbali and profit on sale of properties of the Company situated at Nandidurg Road, Bangalore. 11. The Government of India has notified New Labour Codes effective from November 21, 2025, impact of these have been assessed based on best information available, which has resulted in increase in gratuity and leave liability by Rs.809 lakhs. Considering the materiality and non-recurring nature of this impact, the Company has presented the same under 'Exceptional items' in the audited standalone financial results for the year ended March 31, 2026. 12. Details of Secured Redeemable Non-Convertible Debentures – NIL 13. Previous period figures have been regrouped wherever necessary to confirm with the current period presentation. 14. The figures for the quarter ended March 31, 2026 are the balancing figures between the audited figures in respect of the full year ended March 31, 2026 and published figures of unaudited figures for the nine months ended December 31, 2025. |