Benara Bearings and Pistons Ltd

Financials at a glance

• Standalone revenue ₹503.08 lakh for FY2025-26, down from ₹1106.89 lakh.
• Standalone net loss after tax ₹1610.25 lakh for FY2025-26.
• EPS ₹-9.09 (basic and diluted) for FY2025-26.
• Current ratio 0.22; liquidity stressed.
• Total borrowings ₹6,344.74 lakh; short-term ₹5,108.06 lakh, long-term ₹1,236.68 lakh.
• Net cash from operating activities ₹(175.79) lakh.
• Impairment on non-current assets ₹210.52 lakh; inventory write-offs ₹910.07 lakh.
• Going concern risk noted by auditors; material uncertainty persists.
• Dividend not declared for the year.

Debt & liquidity

• Total borrowings ₹6,344.74 lakh; debt burden remains high.
• Lenders have NPAs status; One-Time Settlement (OTS) negotiations in progress.
• O TS with Axis Bank and Bandhan Bank; outstanding around ₹3,000 lakh; ₹752.20 lakh paid to date.
• Year-end cash and cash equivalents standalone ₹8.64 lakh; consolidated ₹19.89 lakh.

Governance changes

• Independent Directors Harvendra Kumar Singh and Sunidhi Jain appointed; effective 19 March 2026.
• Baljit Singh appointed Company Secretary & Compliance Officer from 24 April 2026.
• Board size five; MD Vivek Benara; no disqualifications.

Audit & internal controls

• Auditors’ reports (standalone/consolidated) contain disclaimers/adverse remarks; significant audit flags.
• Internal audit system not established; weaknesses highlighted by auditors.
• Secretarial audit by Kriti Daga; SS-1 and SS-2 compliance noted.

Subsidiaries & related parties

• Subsidiaries: Benara Solar Pvt Ltd and Securitrans Trading Pvt Ltd.
• Related party loans to directors and relatives disclosed; Jain family and Vivek Benara prominent.
• Remuneration to KMPs: P. Jain ₹9.60 lakh; Vivek Benara ₹12.00 lakh.

Shareholding & market disclosures

• Promoters hold 69.91%; public 30.09%.
• Equity shares: 1.77 crore; 100% dematerialized; SME-listed on BSE (Scrip 541178; ISIN INE495Z01011).
• Dividend history: no dividend declared; no payout in last 10 years.

Risks & outlook

• Material going concern risk due to ongoing cash losses and negative net worth.
• Ongoing debt resolution and cost rationalization efforts; exploring new funding sources.
• Delays in SEBI/LORD filings; SOP fines noted by BSE; governance discipline ongoing.

Book Closure Details

• Book closure from Sep 22, 2026 to Sep 28, 2026 (inclusive) for Annual General Meeting.

Key approvals

• Director's Report for FY ended 2025-26 approved with annexures.
• Fixed book closure period for 36th AGM.
• Notice of 36th AGM approved; to be held 28 Sept 2026 at 2:30 PM (VC/OAVM).
• Secretarial Audit Report for FY ended 2025-26 approved.

Directors and key appointments

• Recommended appointment of Panna Lal Jain for reappointment at the ensuing AGM.
• Regularize Harvendra Kumar Singh as Non-Executive Independent Director for 5 years w.e.f. 19 Mar 2026.
• Regularize Sunidhi Jain as Non-Executive Independent Director for 5 years w.e.f. 19 Mar 2026.
• Appointed Kriti Daga as Secretarial Auditor for 5 years, subject to member approval at AGM.

Governance actions

• Appointed Kriti Daga as Scrutinizer for E-voting at AGM via OAVM.

Dematerialisation status

• No dematerialisation/rematerialisation requests were received during the reporting period.
• Regulation 74(5) not applicable as the entire shareholding is in demat form.

Non-convertible securities status

• No non-convertible securities outstanding during the quarter.
• No payments due on non-convertible securities in the quarter.
• No unpaid obligations on non-convertible securities at quarter-end.

Standalone results

• 📊 H1 FY26 standalone total income fell to ₹289.1 lakh from ₹550.2 lakh.
• 📊 Standalone loss before tax was ₹641.4 lakh versus ₹1,215.2 lakh last year.
• 📊 Standalone net loss narrowed to ₹629.6 lakh from ₹2,186.6 lakh.
• 📊 Other operating income was ₹269.1 lakh; other income was ₹20.0 lakh.
• 📊 Other expenses were ₹556.1 lakh, the largest cost line item.

Consolidated results

• 📊 H1 FY26 consolidated total income fell to ₹289.1 lakh from ₹576.3 lakh.
• 📊 Consolidated loss before tax was ₹641.5 lakh versus ₹1,215.3 lakh last year.
• 📊 Consolidated net loss narrowed to ₹629.7 lakh from ₹2,253.9 lakh.
• 📊 Consolidated other expenses were ₹556.2 lakh, dominating the cost base.

Balance sheet and cash flow

• 📊 Standalone cash and cash equivalents were ₹55.1 lakh at 30 September 2025.
• 📊 Consolidated cash and cash equivalents were ₹63.6 lakh at 30 September 2025.
• 📊 Standalone inventories were ₹1,790.5 lakh and trade receivables were ₹519.6 lakh.
• 📊 Consolidated inventories were ₹1,790.5 lakh and trade receivables were ₹519.6 lakh.
• 📊 Standalone net cash from operations was negative ₹17.0 lakh.
• 📊 Consolidated net cash from operations was positive ₹5.8 lakh.

Asset quality and liabilities

• ⚠️ The company defaulted on borrowings and lenders classified loan accounts as NPAs.
• ⚠️ Management is negotiating a one-time settlement and seeking funds for settlement obligations.
• ⚠️ Interest expense on NPA borrowings was not recognised during the period.
• ⚠️ Sundry debtors of ₹1,811.8 lakh were over one year old; ₹1,322.3 lakh provision was booked.
• ⚠️ Inventories included slow-moving items; physical verification was not fully completed.
• ⚠️ Income-tax demands of ₹8,678.6 lakh and GST demands of ₹911.1 lakh remain disputed.

Auditor review

• 🗒️ Statutory auditors issued a limited review report on standalone results.
• 🗒️ Statutory auditors issued a limited review report on consolidated results.
• ⚠️ Auditors highlighted inventory valuation, recoverability, NPA interest, and going-concern uncertainties.

Business segment

• 📍 The company operates in a single segment: automobile components.
• 📍 Subsidiaries included in consolidation were Securitrans Trading Private Limited and Benara Solar Private Limited.