Majestic Research Services and Solutions Ltd Issues Disclaimer of Opinion on Financial Results

Majestic Research Services and Solutions Ltd Issues Disclaimer of Opinion on Financial Results​

Majestic Research Services and Solutions Limited (MRSSL) has reported its unaudited and audited financial results for the half year ended March 31, 2026, accompanied by a Disclaimer of Opinion issued by chartered accountants. The company's accounts reflect ongoing challenges related to its corporate insolvency status and operational transitions.

The audit report confirms that due to material uncertainties surrounding the state of the company and the inability to obtain sufficient supporting evidence for certain items, the auditors could not provide an opinion on the financial results.

Operational Context and Management Change​

The Company had been undergoing a Corporate Insolvency Resolution Process (CIRP) under the National Company Law Tribunal (NCLT) since May 2023. The NCLT subsequently approved a Resolution Plan in June 2025, which led to the transfer of management and control of the company to the new management, identified as the Successful Resolution Applicant.

The financial results presented for the half year ended March 31, 2026, include figures derived from this period. Due to the CIRP during the previous period, comparative information for the corresponding half-year ending March 31, 2025, was not available. Instead, the report includes comparative figures only for the immediately preceding half year ended September 30, 2025.

Financial Performance and Key Positions​

The financial results show a loss of (8.84) lakhs for the half year ended March 31, 2026. The Company's balance sheet reflects significant changes compared to previous periods. At the close of the reporting period, Total Assets stood at 650.68 lakhs, while Total Equity and Liabilities amounted to 650.68 lakhs.

The company has been operating under the constraints of the Resolution Plan, which resulted in the extinguishment or settlement of certain outstanding financial obligations. The audit qualified its opinion due to the non-verifiability of opening balances for various items, such as secured and unsecured borrowings, trade payables, trade receivables, and fixed assets.

A summary of the key financial data points for the half year ended March 31, 2026 (Amounts in lakhs) is provided below:

Audit Qualification Details​

The Disclaimer of Opinion was issued by J J Patel & Associates Chartered Accountants, citing multiple material concerns related to the state of the company post-insolvency process:

• Non-Verifiable Opening Balances: The auditors were unable to independently verify the opening balances of several balance sheet items—including cash and cash equivalents, fixed assets, trade receivables, and financial creditors—given that these accounts transitioned under the approved Resolution Plan.
• Property, Plant & Equipment (P&E): Carrying amounts of P&E carried over from 2025 were unadjusted due to a lack of adequate information and records related to these assets. Furthermore, no depreciation was recognized on such assets for the half year ended March 31, 2026, in view of prevailing circumstances arising from the CIRP.
• Financial Transactions: Audit procedures could not verify certain expenses charged to the Statement of Profit and Loss because the relevant invoices and supporting documents were unavailable. Similarly, the auditors could not confirm Fixed Deposits due to non-receipt of closure or maturity certificates.

The audit report noted that the management is unable to quantify or estimate the financial impact of these qualifications as the company was acquired pursuant to an NCLT order resulting in a change in management, and the current management does not possess complete details regarding historical transactions prior to acquisition.