Antarctica Ltd (ANTGRAPHIC) Quarterly Report Analysis & Insights

Antarctica Ltd

| Audited Standalone Financial Results – Q4 FY 2025-26

BEARISH SENTIMENT

⬤26th Jun 26

Summary : Antarctica Limited received a disclaimer of opinion due to significant unverified financial items and weak internal controls, despite reporting a profit.

Quarterly Report Analysis & Insights

Financial Disclosures

Total Expenses: 6216.39 Lakhs (FY26).
Purchase of stock-in-trade: 6020.58 Lakhs (FY26).
Depreciation and Amortisation expense: 93.20 Lakhs (FY26).
Certain trade and other receivables outstanding for considerable period.
Uncertainty regarding recoverability of these balances.
Revenue from operations: 6290.50 Lakhs (FY26).
Other Income: 81.02 Lakhs (FY26).
Net cash used in operating activities: (407.70) Lakhs (FY26).
Net cash used in investing activities: 0.00 Lakhs (FY26).
Net cash from financing activities: 404.41 Lakhs (FY26).
Net decrease in cash and cash equivalents: (3.29) Lakhs (FY26).
Total Assets: 5469.48 Lakhs (FY26).
Total Equity: 1724.02 Lakhs (FY26).
Total Liabilities: 3745.47 Lakhs (FY26).
Non-Current Assets: 1204.91 Lakhs (FY26).
Current Assets: 4264.57 Lakhs (FY26).
Non-Current Liabilities: 922.77 Lakhs (FY26).
Current Liabilities: 2822.69 Lakhs (FY26).
Statement of Related Party Transactions noted by Board.
Financial results are Standalone.
No subsidiaries, joint ventures, or associate companies.

Corporate Overview

Primarily operates within India, with offices in Kolkata and Ahmedabad.
Significant audit qualifications on financial records.
Inability to verify key financial statement items.
Weak internal controls and documentation practices.
Company operates in the packaging industry.
Management acknowledges audit findings and commits to future improvements.

Risk Factors

Disclaimer of audit opinion.
Unverified unsecured loans and inventory.
Lack of fixed asset register.
Uncertainty of receivable recovery.

Key Drivers

Resolve all audit qualifications promptly.
Improve financial reporting transparency.
Strengthen internal control systems.
Recover long-outstanding receivables.

Auditor’s Report

Disclaimer of Opinion on standalone annual financial results.
Unsecured loans: no agreements, unable to verify balances/interest.
Inventory: no auditor physical verification, unable to verify existence/valuation.
Deferred Tax: no DTA/DTL recognized, management states no timing differences.
Fixed Assets Register: not maintained, unable to verify completeness/existence.
Long-outstanding trade and other receivables, recoverability uncertain.
No identification of MSME vendors, hence no related disclosures.

Board Commentary

Unverified unsecured loans and inventory.
Non-maintenance of fixed assets register.
Uncertainty of long-outstanding receivables.
Potential regulatory scrutiny due to audit disclaimer.

Corporate Governance

Company adheres to ICAI Code of Ethics.
Audit Committee Chairman identified.
Audit Committee exists and reviewed financial results.
Significant internal control weaknesses highlighted by audit qualifications.
Lack of proper documentation for key financial items.

Management Discussion & Analysis

Future Strategy

Improve documentation for unsecured loans.
Strengthen inventory verification processes.
Prepare a detailed Fixed Assets Register.

Operational Focus Areas

Ensuring proper loan agreements and interest accounting.
Implementing robust inventory verification procedures.
Maintaining a comprehensive fixed assets register.

Performance Drivers

Increased revenue from operations year-on-year.
Return to profitability for the fiscal year.

Risk Control Measures

Management commits to maintaining proper supporting documentation.
Management states physical verification of inventory was done.
Company initiated steps to prepare detailed Fixed Assets Register.

Critical Risks

Inability to verify unsecured loan balances.
Uncertainty regarding inventory existence and valuation.
Lack of a comprehensive fixed assets register.
Uncertainty of long-outstanding receivable recovery.