Starcom discloses Rs 16.49 crore overdue statutory dues

Starcom Information Technology Limited disclosed Rs 16.49 crore of overdue statutory dues as at September 30, 2026, including Rs 10.47 crore of interest, while saying further consequences under applicable laws were not ascertained. Its auditor said it could not comment on the resulting effect on the company’s assets, liabilities and loss.

How much does Starcom owe in overdue statutory dues?

Starcom reported Rs 16.49 crore of overdue statutory dues at September 30, 2026 across indirect taxes, employee-related levies and tax deducted at source. The disclosure includes Rs 2.38 crore for sales tax, service tax and goods and services tax, Rs 2.07 crore for provident fund, Employees’ State Insurance Corporation and professional tax, and Rs 12.04 crore for tax deducted at source.

Tax deducted at source was the largest disclosed category at Rs 12.04 crore, compared with Rs 4.45 crore combined for the indirect-tax and employee-related categories. Interest included in the tax-deducted-at-source balance was Rs 7.31 crore, while interest included in indirect-tax dues and employee-related dues was Rs 1.76 crore and Rs 1.40 crore, respectively.

Starcom said it had provided interest on the liabilities through September 30, 2026. The reported interest of Rs 10.47 crore represents the majority of the Rs 16.49 crore disclosed total, leaving Rs 6.02 crore excluding the interest specified in the filing. The statement does not disclose payment dates, settlement terms, tax demands or payments made after the reporting date.

What remains uncertain about Starcom’s statutory dues?

Starcom said any other consequential impacts under the respective laws had not been ascertained as at September 30, 2026. The company has quantified dues and provided interest through that date, but has not quantified whether additional legal, financial or accounting consequences could arise from the overdue balances of Rs 16.49 crore.

The auditor repeated the statutory-dues disclosure in its limited review report and said it was unable to comment on the resultant effect on Starcom’s assets, liabilities and loss. The financial-results note says the auditor issued a modified opinion regarding this matter, while the review conclusion was subject to the observations set out in the report.

The overdue-dues observation was one of several matters addressed in the review. The auditor also referred to Rs 6.07 crore of rent expense not recognised for April 1, 2019 to July 31, 2024, and Rs 24.31 crore of intangible assets under development that had not been completed for a long time. These are separate matters from statutory dues, but each affected the auditor’s ability to comment on aspects of the reported financial statements.

How do Starcom’s dues compare with its financial position?

Starcom’s Rs 16.49 crore of overdue statutory dues exceeded its current assets of Rs 1.39 crore at September 30, 2026. Current liabilities stood at Rs 52.87 crore, up from Rs 51.09 crore at March 31, 2026, while total assets declined to Rs 26.42 crore from Rs 27.56 crore over the same six-month period.

Total equity was negative Rs 33.51 crore at September 30, 2026, compared with negative Rs 30.04 crore at March 31, 2026. Other equity widened to negative Rs 38.51 crore from negative Rs 35.04 crore, while paid-up equity share capital remained Rs 5 crore. The balance sheet reported total liabilities of Rs 59.93 crore at the September date.

The auditor said Starcom had incurred cash losses, its net worth was fully eroded and current liabilities exceeded current assets. It said these conditions indicated a material uncertainty that may cast significant doubt on Starcom’s ability to continue as a going concern, although the accounts were prepared on that basis.

Management said it was pursuing prospective investors to meet working-capital requirements and expected operations to make profits in future. Separately, the statement classified Rs 10 crore received from a city builder as other current liability because, in the absence of relevant documentation, Starcom could not conclude the nature of the transaction.

What was Starcom’s September 2026 operating performance?

Starcom recorded a net loss of Rs 1.58 crore for the quarter ended September 30, 2026, compared with a loss of Rs 1.20 crore in the quarter ended September 30, 2025. Revenue from operations increased to Rs 49.57 lakh from Rs 47.92 lakh, but total expenses rose to Rs 2.13 crore from Rs 1.76 crore.

For the half year ended September 30, 2026, Starcom’s loss widened to Rs 3.47 crore from Rs 2.80 crore a year earlier. Revenue from operations fell to Rs 71.68 lakh from Rs 76.49 lakh, while interest on delayed statutory payments was Rs 57.57 lakh, compared with Rs 56.84 lakh in the comparable half year.

The test, measurement and embedded solutions business for the educational sector generated Rs 63.89 lakh of half-year revenue, down from Rs 74.23 lakh a year earlier. Revenue from data quality, statistical and analytics software increased to Rs 7.79 lakh from Rs 2.26 lakh, although the two segments together reported a loss of Rs 15.50 lakh before finance costs and unallocable expenses.

Operating activities used Rs 1.18 crore of cash during the half year ended September 30, 2026, compared with Rs 1.89 crore used in the year ended March 31, 2026. Financing activities provided Rs 1.20 crore, including Rs 1.21 crore of net short-term borrowing proceeds, and cash and cash equivalents ended at Rs 5.49 lakh, versus Rs 6.95 lakh at March 31, 2026.

Conclusion

Starcom’s filing identifies Rs 16.49 crore of overdue statutory dues, with Rs 12.04 crore relating to tax deducted at source and Rs 10.47 crore representing interest across all three disclosed categories. The balances sit alongside negative equity of Rs 33.51 crore, current liabilities of Rs 52.87 crore and an auditor observation that the eventual effects of the statutory-dues matter cannot yet be determined.

The next filing should show whether Starcom has resolved or reduced the overdue dues, quantified any further consequences, or secured the working-capital funding management is pursuing from prospective investors. Readers can also watch for an outcome from discussions over Rs 6.61 crore of outstanding rent and for audit evidence concerning Rs 24.31 crore of intangible assets under development.