Modipon Limited has announced its unaudited financial results for the quarter ended June 30, 2026. The company reported a total income of ₹0.00 Lakhs and total expenses of ₹13.42 Lakhs, resulting in a net loss of ₹13.42 Lakhs for the quarter. This performance reflects ongoing operational challenges and an asset-liability imbalance.
Modipon Limited Adopts Q1 FY27 Financial Results
Modipon Limited convened a board meeting on August 14, 2026, to approve and adopt its unaudited financial results for the quarter that concluded on June 30, 2026. The disclosed financial statements highlight a challenging quarter for the company.
Financial Performance for the Quarter Ended June 30, 2026
The company reported zero revenue from operations for the quarter. Other income was also nil. Total income stood at ₹0.00 Lakhs. Expenses, however, amounted to ₹13.42 Lakhs, comprising employee benefits, other expenses, and depreciation. Consequently, the profit/(loss) before tax was (₹13.42 Lakhs). After accounting for nil tax expenses, the net loss for the quarter from continuing and discontinued operations was also (₹13.42 Lakhs).
The Earnings Per Equity Share (basic and diluted) for the continuing operations and for total operations stood at (₹0.12).
Statement of Assets and Liabilities as at June 30, 2026
As of June 30, 2026, Modipon Limited’s total assets were reported at ₹766.91 Lakhs. Equity and Liabilities totaled the same amount. The equity share capital stood at ₹1157.67 Lakhs, with other equity showing a significant negative balance of (₹10396.66 Lakhs), resulting in a total equity deficit of (₹9238.99 Lakhs).
Non-current liabilities amounted to ₹2809.95 Lakhs, primarily driven by borrowings and trade payables. Current liabilities were significantly higher at ₹7195.94 Lakhs, largely due to current borrowings and trade payables. Notably, the company’s liabilities far exceed its assets and equity, indicating a precarious financial position.
Cash Flow Statement Highlights
For the quarter ended June 30, 2026, the cash flow statement shows a net cash generated from operations of ₹0.25 Lakhs. Cash flow from investing activities was nil, and cash flow from financing activities was also nil. This resulted in a net increase in cash and cash equivalents of ₹0.25 Lakhs for the quarter, with closing cash and cash equivalents at ₹5.84 Lakhs.
Key Notes and Disclosures
The financial statements include several important notes highlighting the company’s financial situation:
- Note 4 & 5: Balance confirmation certificates were not obtained from various parties, and interest on overdue supplier payments has not been provided, leading to understatement of liabilities and reserves.
- Note 7 & 8: Details of a significant vacant land sale and the provision of vacant houses to a related party as security for loans are disclosed.
- Note 9 & 10: Extensive details are provided regarding a one-time settlement (OTS) with Punjab National Bank (PNB), including ongoing legal proceedings, revived OTS terms, and related payment obligations.
- Note 11: Proceedings initiated by PNB under the Insolvency and Bankruptcy Code and subsequent legal challenges are documented.
- Note 12: A liability for central excise duty, interest, and penalty, ordered in 2018, has not been provided for, potentially understating profits.
- Note 13: Details regarding amounts paid by a related party, Ashoka Mercantile Limited, for bank OTS and the unallocated balances under unsecured loans are mentioned, with the effect of final PNB OTS being unascertained.
- Note 14: 15% redeemable cumulative preference shares due for redemption since March 31, 1996, remain outstanding.
The company’s financial results indicate significant ongoing financial and legal complexities that impact its overall performance and financial health.
Source: BSE
