Infronics Systems Ltd. - Quarterly/Annual Result Disclosures and Notes dated 30 Jun 2026

1. In pursuance with Regulation 33 of SEBI (LODR) Regulations, 2015 and Schedule III of Companies Act, 2013, the above Financial Results have been prepared by Company and reviewed by Audit Committee and subsequently approved by Board of Directors of Company at their meeting held on 11th August 2026. The statutory auditors have carried out Limited review for the quarter ended 30th June 2026.
2.The financial results have been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, “Interim Financial Reporting” (“Ind AS 34”), prescribed under Section 133 of the Companies Act, 2013, as amended, read with the relevant rules issued thereunder and other accounting principles generally accepted in India.
3. The Company is primarily engaged in the business of providing "IT Software Products" and all other activities are incidental to the main activities of the company. Accordingly, there are no separate reportable segments as per Ind AS 108 - "Operating Segments"
4. The figures for the quarter ended March 31, 2026 is the balancing figures between the audited figures in respect of full previous financial year and the published year-to-date figures upto the end of the third quarter of the relevant previous financial year. Also the figures upto the end of third quarter of the relevant previous financial had only been reviewed and not subjected to audit.
5. The Company’s customer contracts with BSNL for providing SMS services to various banks were fully concluded during the Financial Year 24-25 and the said contracts have not been renewed subsequently. Consequently, the Company currently does not have active revenue-generating business operations.The Company has cash and bank balances as at June 30, 2026. However, bank account balances are subject to debit restrictions / freeze in connection with disputed matters, and therefore the immediate use of such balances is restricted pending resolution of the matter. Management is taking necessary steps for resolution of the restriction and continues to assess the Company’s liquidity position based on unrestricted balances, existing liabilities and estimated obligations expected to arise during the next twelve months.
Management is also exploring opportunities in the technology sector, including research and development of a technological product. Considering the absence of active operating contracts, the restricted availability of certain bank balances and the uncertainty relating to commencement of future business operations, there exists a material uncertainty that may cast significant doubt on the Company’s ability to continue as a going concern.
The Unaudited financial results have been prepared on a going concern basis based on management’s assessment of the Company’s current resources, expected resolution of pending matters and proposed future business initiatives. No adjustments have been made to the carrying values or classification of assets and liabilities that may be necessary if the Company is unable to continue as a going concern.
6. During the previous year the company received a demand notice dated July 11, 2025, from M/s Mudunuru Limited claiming a sum of Rs. 12,05,23,699/- purportedly due from the company (including a principal component of Rs. 8,60,30,257 and interest component of Rs. 3,44,93,442/- for alleged services, supported by alleged proforma invoices dated between March 2023 and April 2025.
The Company, vide its response dated July 21, 2025, has formally disputed the said claim and denied any liability in respect thereof. The Company has stated that all obligations under the last business arrangement with M/s Mudunuru Limited, which ended in October 2022, had been fully settled, that no new contract or arrangement existed thereafter, and that the invoices referred to in the demand notice are not supported by any agreed contractual terms or enforceable arrangements.
The Company has obtained a legal opinion dated August 13, 2025, on the tenability of the demand. Based on the facts of the matter and the legal opinion obtained, management believes that the Company has reasonable grounds to contest the claim and that no operational debt is presently due. Management further believes that there is no present obligation requiring recognition of a provision under Ind AS 37, Provisions, Contingent Liabilities and Contingent Assets.Based on the above facts and legal advice obtained, management believes there is no present obligation as defined under Ind AS 37, and accordingly, no provision has been recognised in these Unaudited financial results. However, in view of the ongoing dispute, the matter has been disclosed as a contingent liability. The ultimate outcome of the matter cannot presently be determined, and no adjustments have been made to the Unaudited financial results for any potential liability that may arise.
There has been no further material development in the matter up to the date of approval of these Unaudited financial results. The ultimate outcome of the dispute, including any financial impact, if any, is presently not ascertainable. No adjustments have been made to these Unaudited financial results in respect of any potential liability that may arise on resolution of the matter.
7. The results for the quarter ended June 30, 2026 are available on BSE Limited's website (www.bseindia.com) and on the Company's website (www.infronics.in).