Manraj Housing Finance Ltd has reported a net loss of Rs 47.97 lakh for FY26, accompanied by an adverse auditor opinion. The company is grappling with an Enforcement Directorate investigation into related-party advances, which constitute 99% of its assets. Additionally, the firm has defaulted on bank loans and essentially ceased operations, while proposing a major pivot into the jewellery and bullion business.
Manraj Housing Finance Reports Net Loss and Adverse Auditor Opinion
Net Loss: Rs 47.97 lakh | Related Party Advances: 99% of total assets
Reader Takeaway: Investors face high risk due to adverse audit, loan defaults, and an ongoing ED investigation into related-party assets.
What just happened
Manraj Housing Finance Ltd has posted a net loss of Rs 47.97 lakh for FY 2025-26, compared to a profit of Rs 33.64 lakh in the previous fiscal. Total income for the year dropped to Rs 4.29 lakh from Rs 54.29 lakh, reflecting a near-stoppage of core operations. The company's statutory auditor, Ratan Chandak & Co LLP, has issued an adverse opinion, citing significant material weaknesses in financial reporting.
Why this matters
The auditor’s adverse opinion highlights severe concerns regarding the company’s financial viability. Crucially, 99% of the company's assets consist of advances to related parties, which are currently under investigation by the Enforcement Directorate under the Prevention of Money Laundering Act (PMLA). This creates profound uncertainty regarding the actual value and recoverability of the company’s assets.
The backstory
The company has remained largely inoperative for over three years. Accumulated losses have climbed to Rs 574.96 lakh, leading to the erosion of its net worth. The auditor further noted a default on a loan facility from Jalgaon Peoples Co-Op Bank, with unrecorded interest and penalties amounting to over Rs 700 lakh between 2020 and 2026.
What changes now
Management has proposed a radical shift in business strategy. Through an amendment to its Memorandum of Association, the company plans to move into the trading of jewellery, ornaments, bullion, and precious stones, alongside gold loan services. The 36th Annual General Meeting is scheduled for September 28, 2026, to discuss these developments.
Risks to watch
Investors should be aware of the material uncertainty surrounding the firm’s status as a 'going concern.' The ongoing ED investigation poses a binary risk to the company’s survival, and the pending bank loan dispute remains a significant financial burden that complicates any potential business pivot.