Majestic Research Services Issues Disclaimer of Opinion on Half-Year Results Due to Corporate Insolvency Process

Majestic Research Services Issues Disclaimer of Opinion on Half-Year Results Due to Corporate Insolvency Process​

Majestic Research Services and Solutions Limited has received a Disclaimer of Opinion from its statutory auditors regarding the financial results for the half year ended March 31, 2026. The audit qualification stems primarily from difficulties in verifying opening balances and transactions subsequent to the company's implementation of the Resolution Plan under the National Company Law Tribunal (NCLT) process.

The results detail a period where management and control were transferred to the new management following the approval of a Resolution Plan by the Hon'ble NCLT on June 20, 2025. The company reported a total loss for the period in addition to significant exceptional items related to previous activities under the Corporate Insolvency Resolution Process (CIRP).

Financial Performance Summary​

The financial results show various operational and non-operational movements. Total Income for the half year ended March 31, 2026, was 0.00 lakhs, while the corresponding figure for the preceding half-year ended September 30, 2025, stood at 2.99 lakhs.

The Statement of Profit and Loss highlights a loss from continuing operations of (8.84) lakhs for the period ending March 31, 2026, compared to a loss of (1,538.75) lakhs in the preceding half-year. This operational loss was offset by exceptional items amounting to 152,274 lakhs in both periods.

Financial position details as of March 31, 2026:

Audit Concerns and Non-Verifiability​

The auditors cited several material issues that led to the Disclaimer of Opinion, focusing on the complex nature of post-CIRP operations and corporate transfers:

• Non-Verifiable Opening Balances: A key concern was the inability to independently verify the opening balances of various assets and liabilities as at April 1, 2025. This included secured and unsecured borrowings, trade payables and sundry creditors, trade receivables and sundry debtors, cash and cash equivalents, fixed assets, and associated depreciation, due to the process under the CIRP.
• Lack of Supporting Documentation: The auditors noted a consistent lack of complete records. For instance, certain expenses charged for the half year ended March 31, 2026, lacked invoices and supporting documents, preventing verification of their nature or accuracy. Similarly, investment write-offs were recorded in the books, but no documentation confirming the basis of those write-offs was provided.
• Creditor Claims: The company received claims from financial and operational creditors during the CIRP. While amounts claimed and admitted are documented in the results (e.g., a total of 145,893,783 lakhs for all creditor categories), verification of the settlement or extinguishment of these liabilities was not possible due to missing supporting documents.
• Going Concern Uncertainty: The auditors were unable to obtain sufficient appropriate audit evidence regarding the company's ability to continue as a going concern, noting that the negative net worth resulted primarily from the implementation of the Resolution Plan.

Cash Flow and Balance Sheet Insights​

Cash flow analysis for the half year ended March 31, 2026, showed a Net Cash Generated from Operating Activities at 1,174.18 lakhs, which included non-cash adjustments such as a loss on write off of assets (1,522.74 lakhs).

The balance sheet data for the half year ended March 31, 2026, is provided below:


The company's assets included a significant amount dedicated to property, plant and equipment (639.79 lakhs). Notably, the financial results indicated that no depreciation was recognized on such assets for the half year ended March 31, 2026, due to the prevailing circumstances arising from the CIRP transition.

Stock Price Movement​

Majestic Research Services and Solutions Ltd shares settled at ₹4.38 after trading on Monday, reflecting a 4.99% drop from the previous close. The stock’s price tested a range throughout the session, moving between a low of ₹4.38 and a high of ₹4.84.