Samsrita Labs presents a record of unqualified audit opinions across seven years, but that clean facade sits atop a business that has effectively ceased to operate. Revenue has collapsed to near-zero, a ₹2.09 crore receivable was written off after years of non-confirmation, and the company now proposes an NCLT capital reduction to extinguish accumulated losses against share capital and securities premium.
Key findings
- A ₹2.09 crore receivable was fully written off after years of non-confirmation, while revenue collapsed to near-zero
Major- Standalone revenue from operations fell from ₹1.43 crore in FY20 to ₹0.02 crore in FY26, with nil revenue in FY24 and FY25. In FY26, the company wrote off an irrecoverable trade receivable of ₹2,08,99,089 from M/s Mangal Savitri Bizcon Private Limited, fully adjusted against an existing provision for doubtful debts of the same amount. For FY24 and FY25, confirmations of receivables and payable balances had not been received by the company, and reliance was placed on balances as per books. - Write-offs of liabilities and advances are repeatedly used to engineer reported profit or loss, and an NCLT capital reduction now proposes to extinguish accumulated losses
Major- In FY2021-22, the company wrote off creditors of Rs. 1.74 crore and interest on ICD of Rs. 16.46 lakhs, and the Board's Report attributed the increase in Return on Net Worth from -4.29% in FY21 to +10.12% in FY22 to sundry creditors written off. In FY2022-23, it wrote off interest accrued on advances to Innovision Life Sciences Pvt Ltd of INR 67,64,136 and adjusted the advance against the directors' loan account of INR 94,00,000, transferring the written-off amount to the Profit and Loss account. The company now proposes a Scheme of Reduction of Share Capital under Section 66 of the Companies Act, 2013, subject to NCLT confirmation, to reduce paid-up share capital by 50% and reduce the Securities Premium Account from Rs. 4,55,00,000 to nil, writing off accumulated losses of Rs. 15,92,48,550 as per audited financial statements as on 31 March 2026. - A ₹94 lakh advance to a promoter-linked entity was written off by netting it against a director's loan account, and the company now seeks approval for a ₹15 crore RPT with a newly acquired associate
Major- In FY2022-23, Samsrita Labs wrote off ₹67,64,136 of accrued interest on advances to Innovision Life Sciences Pvt Ltd and adjusted the ₹94,00,000 advance itself against the loan account of director Mr. K. Krishnam Raju. As at 31.03.2020, the company had granted a secured loan to Innovasion Life Sciences Private Limited where the borrower had not repaid principal as stipulated and was not regular in interest payment, with total overdue of ₹1,18,10,319 outstanding for more than 90 days. The FY2025-26 AGM notice now seeks shareholder approval for a material related party transaction with Qrops Advisory Services Private Limited for sales or purchase of services up to ₹15.00 Crores during April 1, 2026 to March 31, 2027, a value approximately 156% of that associate's annual standalone turnover for FY2025-26 of ₹9.68 Crores. - Promoter shareholding halved in FY26 via open-market disposals and a preferential allotment, while two whole-time directors were re-appointed with remuneration despite the company having no operations
Major- Promoter and promoter group shareholding fell from 50.17% as of 15 January 2025 to 25.44% as of 24 November 2025, a decline of 24.73 percentage points in under one year. A preferential allotment of 45,50,004 equity shares to three non-promoter allottees was executed on 18 July 2025, with one allottee's announcement showing pre-allotment capital of 48,08,706 equity shares and post-allotment capital of 2,28,49,710 equity shares. Mr. K. Krishnam Raju was re-appointed as Executive Chairman and Whole-Time Director for 3 years from 27 December 2024 at a remuneration of ₹3,00,000 per month, and Mr. K.N.V. Narendra Kumar was re-appointed as Whole-Time Director and CFO for 3 years from 2 July 2024 at ₹70,000 per month, both with a Schedule V clause authorising payment of this salary as minimum remuneration even in the event of losses, while the explanatory statements for both re-appointments state: "At present, there are no operations in the Company". - Audit opinions have been unqualified across all seven years, but CARO reports record persistent statutory-dues delays and a sharp escalation in cash losses from ₹25.95 lakh in FY25 to ₹8.69 crore in FY26
Major- The standalone and consolidated audit opinions were unqualified in every year from FY20 through FY26, and the auditor reported no Key Audit Matters in any year. CARO clause vii reported that undisputed statutory dues were not regularly deposited and there were serious delays in a large number of cases in FY20 and FY21, and delays in a certain number of cases in FY22, FY23 and FY24, though dues were regularly deposited with no delays in FY25 and FY26. CARO clause xvii reported cash losses of ₹8.69 crore in FY26 and ₹25.95 lakh in FY25. - Two auditor resignations in three years, each citing fee pressure from a shrinking business, followed by a shareholder rejection of the board's first replacement pick
Major- MSKA & Associates resigned as statutory auditor effective 14.11.2020, stating the company had substantially scaled down operations and proposed a substantial fee reduction that was not feasible for them. A.M. Reddy & D.R. Reddy, appointed to fill the casual vacancy, resigned effective 02.09.2023, citing that the size of the firm and the audit fee were not commensurate with the size and effort of the audit. The board appointed N G Rao & Associates on 03.09.2023, but shareholders rejected the appointment at the AGM on 28.09.2023 with 99.47% of votes cast against. - The company is a named party in NCLT proceedings arising from a fraud and breach-of-trust dispute involving its associate, while the auditor consistently states no litigation impacts the financial position
Minor- From FY2023-24 onward, Samsrita Labs Limited is named as a respondent in an NCLT petition filed by Mr. Mahesh Kandula against Krisani Bio Sciences Pvt Ltd, Mr. K. Krishnam Raju, and others. The underlying dispute originated on 03.08.2023 when Krisani Bio Sciences Private Limited and promoter director Mr. K. Krishnam Raju filed an FIR against Mr. Mahesh Kandula, Cellix Bio Pvt. Ltd and its directors alleging Criminal Breach of Trust, Criminal Misappropriation, Theft and Fraud. The auditor's Rule 11 report for FY2020-21 through FY2025-26 states each year that "the Company does not have any pending litigations which would impact its financial position".
What to watch
- Shareholder vote on the ₹15 Crore material RPT with Qrops Advisory Services Private Limited at the AGM scheduled for 10th August 2026.
- NCLT Hyderabad Bench confirmation of the Scheme of Reduction of Share Capital, as proposed in the AGM notice dated 18th Jul 2026 for the meeting scheduled on 10th Aug 2026.
- Resolution or further orders in the NCLT petition naming Samsrita Labs Limited as a respondent, as cases remain at different stages as of the FY2025-26 annual report.
- Actual transaction volume with Qrops Advisory Services Private Limited during FY2026-27 against the approved ₹15 Crore limit.
Bottom line: This is a record of a business that has wound down to near-zero revenue while its financial statements are shaped by write-offs, liability reversals, and a proposed court-sanctioned capital reduction that would extinguish accumulated losses through the balance-sheet reserves rather than the profit-and-loss account. The auditor has never qualified its opinion, yet the CARO annexures tell a different story of statutory-dues delays and escalating cash losses. The risk now centres on the proposed ₹15 crore RPT with a newly acquired associate whose turnover is a fraction of that commitment, and on whether the NCLT capital reduction proceeds as proposed. Watch the shareholder votes in August and September 2026.