Vardhan Capital & Finance Ltd reports overdue statutory dues

Vardhan Capital & Finance Limited disclosed that statutory dues exceeding Rs 2.23 crore had been unpaid for more than six months amid liquidity issues, its auditor said on 30 October 2026. Vardhan Capital & Finance Ltd also reported total assets of Rs 11.40 crore at 30 September 2026, down from Rs 13.73 crore at 31 March 2026.

What did the auditor say about Vardhan Capital & Finance Ltd’s liquidity?

The auditor said Vardhan Capital & Finance Ltd was facing liquidity issues and had not paid statutory dues exceeding Rs 2.23 crore for more than six months. JMT & Associates made the observation in an emphasis-of-matter paragraph in its limited-review report on the unaudited financial results for the quarter and half year ended 30 September 2026.

The report also said Vardhan Capital & Finance Ltd was in the process of regularising returns with the Reserve Bank of India, or RBI, and compliance with regulatory bodies as at 30 October 2026. The filing does not identify the type of statutory dues, name the returns being regularised, or provide a completion date for the compliance process.

Management represented that the liquidity issue was temporary and would be resolved soon because its loans and advances were good and recoverable in full. Management also said there was no going-concern issue and no material provision was required for non-compliances affecting the financial results or financial position at 30 September 2026; these statements were management representations reported by the auditor.

JMT & Associates said its report was not modified in respect of these matters. The firm conducted a limited review under Standard on Review Engagements 2410, which it said consists principally of inquiries and analytical procedures and provides less assurance than an audit.

How did Vardhan Capital & Finance Ltd’s balance sheet change?

Vardhan Capital & Finance Ltd’s total assets fell by Rs 2.33 crore to Rs 11.40 crore at 30 September 2026 from Rs 13.73 crore at 31 March 2026. Loans and advances were the largest balance-sheet item affected, declining by Rs 2.12 crore to Rs 6.43 crore over the six-month period.

Investments decreased by Rs 42.79 lakh to Rs 1.84 crore, while other financial assets increased to Rs 3.05 crore from Rs 2.87 crore. Cash and cash equivalents stood at Rs 8.25 lakh at 30 September 2026, compared with Rs 5.48 lakh at 31 March 2026.

Borrowings fell by Rs 1.66 crore to Rs 1.95 crore during the six months ended 30 September 2026. Other financial liabilities declined by Rs 17.12 lakh to Rs 2.29 crore, resulting in total financial liabilities decreasing by Rs 1.83 crore to Rs 4.24 crore.

Total equity declined by Rs 49.58 lakh to Rs 7.16 crore at 30 September 2026. Equity share capital remained unchanged at Rs 4.35 crore, while other equity fell to Rs 2.81 crore from Rs 3.31 crore at 31 March 2026.

What were Vardhan Capital & Finance Ltd’s half-year results?

Vardhan Capital & Finance Ltd reported a net loss of Rs 6.80 lakh for the half year ended 30 September 2026, compared with a loss of Rs 1.52 lakh in the half year ended 30 September 2025. The loss before tax was also Rs 6.80 lakh, and the statement did not show current or deferred tax expense for the 2026 half year.

For the quarter ended 30 September 2026, Vardhan Capital & Finance Ltd recorded a loss of Rs 3.66 lakh, compared with a loss of Rs 3.14 lakh in the preceding quarter ended 30 June 2026. The loss was also higher than the Rs 62,000 reported for the quarter ended 30 September 2025.

Basic and diluted loss per share was Rs 0.16 for the half year ended 30 September 2026, compared with Rs 0.03 for the corresponding 2025 period. Vardhan Capital & Finance Ltd stated that earnings per share for quarters and half years were not annualised.

The cash-flow statement showed net cash inflow from operating activities of Rs 2.14 lakh for the half year ended 30 September 2026, against an outflow of Rs 16,000 in the year ended 31 March 2026. Investing activities contributed Rs 63,000, while no financing cash flow was reported, taking cash and cash equivalents to Rs 8.25 lakh from Rs 5.48 lakh at the beginning of the period.

What board and compliance actions did Vardhan Capital & Finance Ltd disclose?

Vardhan Capital & Finance Ltd said its board approved the unaudited results for the quarter and half year ended 30 September 2026 at its meeting on 30 October 2026. The results had been reviewed by the audit committee, and the board meeting ran from 11:00 a.m. to 5:15 p.m., according to the filing.

The board appointed A. M. Mandavkar & Co, Chartered Accountants, bearing firm registration number 154807W, as internal auditor on 30 October 2026. It also appointed Dilip Vardhan, holding Director Identification Number 00207420, as an additional non-executive director with effect from the same date.

Vardhan Capital & Finance Ltd said it primarily operates in financial services and allied activities and therefore reported no separate reportable segments under Indian Accounting Standard 108. The company also said its business was not subject to seasonal variation in the results for the half year ended 30 September 2026.

Investor-complaint data showed nil opening complaints, nil complaints received, nil complaints disposed of and a nil closing balance for the quarter ended 30 September 2026. That disclosure concerns investor complaints and does not specify the statutory dues or RBI returns cited in the auditor’s 30 October 2026 emphasis-of-matter paragraph.

Conclusion

The 30 September 2026 filing links an auditor-identified liquidity and compliance matter to a smaller balance sheet and a wider half-year loss. Statutory dues exceeding Rs 2.23 crore were unpaid for more than six months, while loans and advances fell by Rs 2.12 crore, borrowings fell by Rs 1.66 crore and total equity declined by Rs 49.58 lakh from 31 March 2026.

What to watch next is management’s stated plan to resolve the temporary liquidity issue and regularise RBI returns and other regulatory compliance. Vardhan Capital & Finance Ltd did not disclose a repayment schedule, the types of overdue statutory dues or a date for completing the regularisation process in its 30 October 2026 filing.