Sparkle Gold Rock Reports Financial Results for FY2026; Audit Highlights Issues in Related Party and MSME Compliance
Sparkle Gold Rock Limited, formerly known as Sree Jayalakshmi Autospin Limited, has reported its financial results for the quarter and year ended March 31, 2026. The company posted a net profit of 414.58 lakh rupees for the full fiscal year.The company's performance, alongside several material findings raised during the audit, indicates significant operational activity in the gold rock sector. The financial statements have been audited by G.R. Gupta and Company, Chartered Accountants.
Key Financial Highlights (As at March 31, 2026)
The consolidated results for the year ended March 31, 2026 show a total income of 11,157.16 lakh rupees from operations, compared to an audited figure of 906.71 lakh rupees in the previous year (FY 2025).The company’s financial position at the end of March 31, 2026 is summarized as follows:
| Particulars | As at Mar 31, 2026 (INR Lakhs) | As at Mar 31, 2025 (INR Lakhs) |
|---|---|---|
| Total Assets | 5,619.49 | 517.67 |
| Equity Share Capital | 447.82 | 447.82 |
| Other Equity | 78.99 | -335.58 |
| Total Current Assets | 5,616.10 | 514.20 |
| Total Current Liabilities | 109.45 | 693.0 |
Audit Highlights and Material Qualifications
The Independent Auditors have issued a Qualified Opinion on the standalone financial statements for the year ended March 31, 2026, citing several material matters requiring attention:Related Party Transactions (RPTs): The company engaged in significant sale and purchase transactions with related party Sparkle Gold Mine Private Limited. These transactions amounted to Rs.3,308.16 lakh as purchases and Rs.1,971.40 lakh as sales during the financial year. Auditors noted that while management asserts these transactions were conducted at arm's length, they were not able to determine this conclusion. Furthermore, the company entered into material transactions without obtaining proper prior approval under Section 188 of the Companies Act, 2013, resulting in non-compliance.
MSME Compliance and Liabilities: The audit identified that the company failed to implement appropriate procedures to identify and report trade payables owed to Micro, Small, and Medium Enterprises (MSMEs). Review of records indicated significant delays in payments to several suppliers beyond statutory timeframes under the MSMED Act, 2006. The company had neither computed nor provided for the mandatory penal compounding interest on these delayed payments at three times the RBI bank rate.
GST and Credit Risk:
1. A liability related to the reversal of Input Tax Credit (ITC) was recorded in the books amounting to Rs.46.22 lakh due to certain trade payables outstanding for over 180 days, although interest on these reversals was not provided by the company. The exact effect of this unreconciled interest is currently undeterminable.
2. The company had not calculated or recognized a provision for Expected Credit Loss (ECL) on its outstanding trade receivables amounting to Rs.5,459.92 lakh as required by Ind AS 109.
Financial Flow and Operations Overview
The Cash Flow Statement showed that Net Cash from Operating Activities was (INR 1,554.90) lakh for the year ended March 31, 2026, with a net increase in cash and cash equivalents of 4.27 lakh rupees. The company had achieved an Earnings Per Share (EPS) of 9.26 per share for continuing operations.Regarding associated risks, the company disclosed exposure to Credit Risk, Liquidity Risk, and Market Risk. The company reported that its functional currency is Indian Rupee, and currency risk is not material as it has no foreign currency exposure. Furthermore, management confirmed that there are no floating rate borrowings in the balance sheet of the company.
Stock Price Movement
On Friday's close, Sparkle Gold Rock Ltd shares finished up at ₹69.19, representing a solid 4.83% gain for the stock. The company experienced intraday volatility, trading in a range between a low of ₹62.01 and a high of ₹69.60.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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