City Online Services

News Summary:

On August 14, 2026, City Online Services Limited reported unaudited financial results for the quarter ended June 30, 2026, with auditors noting the company's net worth is completely eroded and current liabilities exceed current assets. The auditor stated they could not corroborate management's contention regarding the preparation of financial statements on a going concern basis and highlighted issues including non-recognition of expected credit loss on financial assets as required by Ind AS 109, insufficient audit evidence on the accuracy and valuation of property, plant, and equipment, and unrecognised liability for accumulated leave entitlements in accordance with Ind AS 19. The company had previously announced on August 10, 2026, that its board would meet on August 14 to consider these financial results. Earlier, on May 29, 2026, City Online Services Limited reported a net loss of Rs. 47.21 lakhs for the quarter and year ended March 31, 2026, with auditors again flagging that the company's net worth had been fully eroded and current liabilities exceeded current assets, raising significant doubt about its ability to continue as a going concern. The audit report for this period also highlighted discrepancies in revenue reporting, unbilled revenue, and non-recognition of expected credit loss on financial assets. Despite the net loss, which compared to a net profit of ₹3.51 lakh in the previous year, revenue from operations increased to ₹772.22 lakh from ₹750.81 lakh in FY25. This followed a May 25, 2026, intimation from the company regarding a board meeting to consider those financial results for the quarter and year ended March 31, 2026.