Natural Biocon (India) Ltd (543207) Quarterly Report Analysis & Insights

Natural Biocon (India) Ltd

| Statement of Standalone Financial Results for the Quarter and Year Ended 31-03-2026

⬤9th May 26

Summary : Company reported significant losses and revenue decline, coupled with serious auditor concerns regarding compliance, fund utilization, and data integrity.

Quarterly Report Analysis & Insights

Financial Disclosures

Total expenses for FY26: 258.54 Lakhs (down from 828.85 Lakhs in FY25).
Total income from operations (net) for FY26: 254.54 Lakhs (down from 834.81 Lakhs in FY25).
Net cash from operating activities decreased from 29.51 Lakhs (FY25) to 2.90 Lakhs (FY26).
Net cash used in investing activities reduced from (2,010.92) Lakhs (FY25) to (12.64) Lakhs (FY26).
Net cash from financing activities reduced from 1,967.12 Lakhs (FY25) to 9.19 Lakhs (FY26).
Total Assets decreased from 3852.22 Lakhs (FY25) to 3683.85 Lakhs (FY26).
Other Equity decreased from 608.75 Lakhs (FY25) to 494.94 Lakhs (FY26).
Inventories decreased significantly from 16.65 Lakhs (FY25) to 0.00 Lakhs (FY26).
Other Current Assets decreased significantly from 116.62 Lakhs (FY25) to 5.22 Lakhs (FY26).
Remuneration of 0.81 Crore to Company Secretary Gopal Trivedi.
Report is for Standalone Audited Financial Results only.

Corporate Overview

Significant decline in revenue and profitability year-on-year.
Auditor raised multiple concerns regarding compliance and data integrity.
Company presently dealing only in one segment.
Formal and regulatory compliance-focused.

Risk Factors

Significant decline in revenue and profit.
Auditor unable to verify transactions.
Misuse of preferential allotment funds.
Non-compliance with dividend regulations.

Key Drivers

Improved financial transparency and compliance.
Resolution of all auditor concerns.
Significant increase in operational revenue.
Effective utilization of capital.

Auditor’s Report

Unmodified opinion on the standalone financial results.
Auditor's resignation not accepted, report issued with understanding of cessation.
Delay in signing due to non-availability of external evidences for financial transactions.
Preferential allotment funds intended for working capital used for investments; auditor cannot opine on utilization.
Outstanding proposed dividend not complied with; auditor cannot opine on compliance.
Debit/credit balance confirmations not provided, reported loss subject to change.
Company lacks share certificates for investments made; auditor cannot opine on investment amounts.

Board Commentary

Company has outstanding proposed dividend, non-compliant with provisions.
Non-compliance with provisions regarding unpaid dividend.
Auditor's resignation not accepted by management citing SEBI circular.
Capital Work in Progress stable at 328.99 Lakhs.
Preferential allotment funds (19.45 Cr) intended for working capital used for investments.

Corporate Governance

Auditor fulfilled ethical responsibilities in accordance with ICAI's Code of Ethics.
Audit Committee reviewed and approved financial results.
Management not accepting auditor's resignation, citing SEBI circular.
Non-compliance with provisions regarding outstanding unpaid dividend.
Preferential allotment funds misused for investments instead of working capital.
Lack of external evidence for financial transactions (Form 26AS, AIS/TIS).
Unreconciled debit/credit balances with third parties.
Company not possessing share certificates for investments made.

Management Discussion & Analysis

Critical Risks

Significant decline in revenue and profit for FY26.
Auditor's inability to verify certain financial transactions.
Preferential allotment funds used for investments, not working capital.
Non-compliance regarding outstanding proposed dividend.
Lack of share certificates for company investments.