Modipon Limited’s Board of Directors convened on August 14, 2026, to approve the unaudited financial results for the quarter ended June 30, 2026. The company reported a net loss of ₹13.42 lakhs for the quarter. Alongside the financial results, the board also adopted the Limited Review Report. The attached notes detail significant ongoing legal matters and potential liabilities, including proceedings with Punjab National Bank and issues related to commercial tax and excise duty, which may impact future financial performance.
Modipon Limited Board Approves Quarterly Financials
The Board of Directors of Modipon Limited met on Friday, August 14, 2026, to review and adopt the company’s unaudited financial results for the quarter ended June 30, 2026. The financial statements, prepared in accordance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, have been enclosed as Annexure A, along with the Limited Review Report as Annexure B.
Financial Performance for Q1 FY27
For the quarter ended June 30, 2026, Modipon Limited reported a total income of ₹0.00 lakhs. The company incurred total expenses amounting to ₹13.42 lakhs, leading to a profit/(loss) before tax of ₹(13.42) lakhs. After considering tax expenses (which were nil for the period), the net profit/(loss) for the quarter stood at ₹(13.42) lakhs. This translates to an earnings per equity share (basic and diluted) of ₹(0.12) for the quarter.
Significant Notes and Disclosures
The accompanying notes highlight several critical aspects of the company’s financial standing and ongoing legal matters:
- Balance Confirmation Certificates: The company has not obtained balance confirmation certificates from various parties including creditors, loan accounts, and bank accounts, with adjustments for required changes not yet carried out.
- Unprovided Interest: Modipon Limited has not provided for interest on overdue amounts payable to a supplier (up to March 31, 2008), resulting in an understatement of liabilities and reserve and surplus by ₹1000.54 lakhs. Interest for the period from April 1, 2008, to June 30, 2026, also remains unascertained. Similar uncertainties exist for interest on amounts due to Small and Micro Enterprises.
- Punjab National Bank (PNB) Matters: Significant details are provided regarding one-time settlements (OTS) with PNB, including proceedings under the Insolvency and Bankruptcy Code, orders from DRAT, and ongoing appeals in the Delhi High Court. These matters involve substantial amounts and potential liabilities related to loans and commercial tax.
- Central Excise and Service Tax: The company has been ordered to pay central excise duty, interest, and penalty for the period 1994-1997. No provision has been made for this amount, leading to an understatement of profit by ₹58.05 lakhs plus interest. An appeal has been filed against this order.
- Ashoka Mercantile Limited (AML) Transactions: Several outstanding amounts related to One Time Settlements with various banks, facilitated by AML, remain unallocated under unsecured loans, pending successful implementation of PNB dues. The effect of final OTS with PNB on income/expenditure is yet to be ascertained.
- Preference Shares: 15% redeemable cumulative preference shares due for redemption since March 31, 1996, remain outstanding.
The company has also indicated that figures for previous periods have been regrouped where necessary to conform to the current period’s classification. The financial results are stated to be free from any false or misleading statements or omissions of material facts.
Board Meeting Details
The Board meeting commenced at 3:30 P.M. and concluded at 4:00 P.M. on August 14, 2026.
Source: BSE
