Sparkle Gold Rock Ltd

Meeting Details

• Board meeting scheduled for 27 August 2026 at 12:30 PM at the Registered Office, Jaipur.

Key Agenda Items

• Consider acquisition of equity share capital of marble mining entity, subject to due diligence and approvals.
• Consider raising funds via preferential issue of equity shares and/or other securities, including swap, subject to approvals.
• Consider appointing professional advisors (legal, financial, tax, technical, SEBI merchant banker, valuer) for the acquisition.
• Authorize Whole Time Director/CEO to conduct due diligence, negotiate, finalize terms, and execute definitive documents.
• Consider other matters incidental to the above.
• Transact any other business with chair's permission.

Other Notes

• Trading window closed for all designated persons from 20 August 2026 until 48 hours after board outcome disclosure.

Sparkle Gold Rock Limited trading window closed from Aug 20, 2026; will reopen 48 hours after the said board meeting results are declared to the Stock Exchange

Auditors resignation and appointment

• Audit Committee accepted the resignation of M/s G.R. Gupta & Company as Statutory Auditors, effective 11 August 2026.
• Resignation reasons cited in their letter were noted and aligned with Audit Committee discussions.
• M/s Dhadda and Associates (FRN: 013807S) to be appointed as Statutory Auditors to fill the casual vacancy.
• Appointment subject to approval of shareholders at the ensuing General Meeting.
• Intimation will be hosted on the company's website.

Registered office change

• Old: Office No 507 508 5th Floor, Vaibhav Cine Mutiplex, Vaishali Nagar, Jaipur, Rajasthan, India, 302021.
• New: C1, 1st Floor, Vaibhav Complex, Vaishali Nagar, Jaipur Rajsthan 302021.
• Within same city/state: Jaipur, Rajasthan.
• Effective date: 11 August 2026.
• Board approved the shift of registered office.
• Impact on operations or investor correspondence not disclosed.

Financial Highlights

• Revenue from operations: ₹1,277.90 lakhs.
• Total income from operations: ₹1,277.91 lakhs.
• Purchases of stock-in-trade: ₹1,234.81 lakhs.
• Employees benefits expense: ₹4.11 lakhs.
• Depreciation and amortisation: ₹0.09 lakhs.
• Total expenses: ₹1,244.60 lakhs.
• Profit before tax: ₹33.30 lakhs.
• Current tax: ₹8.39 lakhs.
• Deferred tax: ₹0.00 lakhs.
• Profit after tax: ₹24.92 lakhs.
• EPS (basic/diluted) from continuing operations: ₹0.56.

Balance Sheet Highlights

• Total assets: ₹4,836.70 lakhs as on 30 Jun 2026 (unaudited).
• Equity: ₹551.73 lakhs (₹447.82 share capital + ₹103.91 other equity).
• Current borrowings: ₹489.07 lakhs.
• Trade payables: ₹3,670.32 lakhs.
• Trade receivables: ₹4,723.15 lakhs.
• Inventories: ₹1.73 lakhs.
• Cash and cash equivalents: ₹102.48 lakhs.
• Current tax liabilities (net): ₹117.84 lakhs.

Cash Flow

• Net cash from operating activities: ₹1,110.91 lakhs.
• Net cash used in investing activities: ₹0.29 lakhs.
• Net cash from financing activities: increase in borrowings ₹1,115.54 lakhs.
• Closing cash and cash equivalents: ₹102.48 lakhs.

Auditor Resignation

• G.R. Gupta & Company resigned as statutory auditors effective Aug 11, 2026.
• Reason: not commercially viable to continue at the existing fee.
• Limited Review report for Q1 FY2026 dated Aug 11, 2026 issued before resignation.

Unaudited results approved

• Unaudited quarterly results for the quarter ended 30 June 2026 approved.
• Limited review report signed; no material misstatements observed.

Auditor changes

• G.R. Gupta & Co. resign as statutory auditors, effective 11 August 2026.
• Dhadda & Associates appointed as statutory auditors to fill casual vacancy, effective 11 August 2026.

Registered office shift

• Registered office shifted to C1 1st Floor, Vaibhav Complex, Vaishali Nagar, Jaipur.

Audit Committee minutes amendment

• Amendment to the Audit Committee minutes approved.

Dematerialisation status

• Dematerialisation requests processed; confirmations sent to depositories.
• Securities dematerialised listed on the exchanges where existing securities are listed.
• Physical certificates for dematerialisation mutilated and cancelled; depository registered owner updated within 15 days.

Audit opinion

• Qualified opinion issued for the quarter and year ended March 31, 2026.
• Auditor flagged first-time qualifications on related parties, MSME disclosures, GST ITC, and receivables.

Related party transactions

• Related-party purchases were Rs.3,308.16 lakh and sales were Rs.1,971.40 lakh during FY26.
• Auditor could not verify arm’s-length pricing for these bullion transactions.
• Board and shareholder approval covered purchases of Rs.2,104.53 lakh only.
• Management said transactions were at prevailing market prices and had no financial impact.

MSME and payables

• Auditor said trade payables were not properly bifurcated between MSME and other creditors.
• Significant supplier payments were delayed beyond MSMED Act timelines.
• Auditor noted unprovided penal interest and possible tax disallowances could not be quantified.
• Management said vendor MSME status was still being mapped and no MSME claims were received.

GST ITC

• Input tax credit reversal of Rs.46.22 lakh was recorded for overdue payables.
• Auditor said interest on the reversed ITC was not provided in books.
• Management said ITC had been reversed and interest liability was under tax consultation.

Receivables

• Trade receivables stood at Rs.5,459.92 lakh.
• Auditor said no expected credit loss provision was recognized under Ind AS 109.
• Management said confirmations were received from almost all parties and balances were considered recoverable.

Business

• Sparkle Gold Rock Limited operates in bullion-related trading transactions.
• The company was formerly known as Sree Jayalakshmi Autospin Limited.

Financial performance

• 📊 Q4 FY26 revenue from operations rose to ₹5,072.55 lakh, up 655% YoY.
• 📊 FY26 revenue from operations reached ₹11,157.11 lakh, up 1,140% YoY.
• 📊 FY26 total income was ₹11,157.16 lakh, including ₹0.05 lakh other income.
• 📊 FY26 purchase of stock-in-trade was ₹10,553.37 lakh, the largest expense.
• 📊 FY26 employee benefits expense increased to ₹18.89 lakh from ₹3.72 lakh.
• 📊 FY26 other expenditure fell to ₹35.86 lakh from ₹49.47 lakh.
• 📊 FY26 profit before tax was ₹523.73 lakh versus a ₹18.99 lakh loss last year.
• 📊 FY26 profit after tax was ₹414.58 lakh versus a ₹24.50 lakh loss last year.
• 📊 FY26 basic and diluted EPS were ₹9.26, versus negative ₹0.55 last year.
• 📊 Q4 FY26 profit after tax was ₹293.51 lakh, versus ₹13.88 lakh loss a year ago.

Balance sheet

• 📊 Total assets rose to ₹5,619.49 lakh at March 2026 from ₹517.67 lakh.
• 📊 Trade receivables increased to ₹5,459.92 lakh from ₹409.61 lakh.
• 📊 Cash and cash equivalents were ₹107.11 lakh at March 2026.
• 📊 Current borrowings increased to ₹1,604.11 lakh from ₹45.15 lakh.
• 📊 Trade payables rose to ₹3,321.14 lakh from ₹343.62 lakh.
• 📊 Other equity turned positive at ₹78.99 lakh from negative ₹335.58 lakh.
• 📊 Equity share capital remained ₹447.12 lakh.

Exceptional items

• 📊 FY26 exceptional items were a ₹26.69 lakh gain, mainly from write-offs.
• 📊 Q4 FY26 exceptional items were a ₹11.50 lakh gain.
• 📊 Management said old trade receivables and payables were written off as untraceable.

Audit opinion

• ⚠️ Auditor issued a qualified opinion on the standalone financial statements.
• ⚠️ Auditor also issued a qualified opinion on internal financial controls.
• ⚠️ Audit report highlighted related-party pricing, missing approvals, MSME disclosure gaps, and ECL non-recognition.
• ⚠️ Auditor noted ₹5,459.92 lakh trade receivables lacked expected credit loss provisioning.
• ⚠️ Auditor noted ₹46.22 lakh GST ITC reversal liability on overdue payables, excluding interest.

Related parties

• 📊 Related-party sales to Sparkle Gold Mine Private Limited were ₹1,971.40 lakh.
• 📊 Related-party purchases from Sparkle Gold Mine Private Limited were ₹3,308.16 lakh.
• ⚠️ Auditor said some related-party transactions lacked mandatory prior approvals under Section 188.

Cash flow

• 📊 FY26 operating cash outflow was ₹1,554.90 lakh.
• 📊 FY26 investing cash outflow was ₹0.29 lakh.
• 📊 FY26 financing cash inflow was ₹1,559.46 lakh, mainly from borrowings.
• 📊 Cash and cash equivalents increased by ₹4.27 lakh during FY26.

Risks

• ⚠️ Auditor flagged delayed statutory dues payments, including GST and other taxes.
• ⚠️ Auditor noted pending tax and customs demands before various forums.
• ⚠️ Internal controls were weak on customer credit evaluation and audit trail security.
• ⚠️ Trade receivables and payables remain subject to confirmation and reconciliation.

Business

• 🗒️ Sparkle Gold Rock Limited was formerly Sree Jayalakshmi Autospin Limited.
• 🗒️ The company reported one identifiable segment for FY26.
• 🗒️ Revenue is primarily from sale of goods.