City Online Services

News Summary:

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. This contrasted with a net profit of Rs. 3.51 lakh in the previous year, despite revenue from operations increasing to Rs. 772.22 lakh from Rs. 750.81 lakh in FY25. The audit report raised significant doubt about the company's ability to continue as a going concern, noting that its net worth had been fully eroded and current liabilities exceeded current assets. Auditors also flagged discrepancies in revenue reporting, unbilled revenue, and non-recognition of expected credit loss on financial assets. This announcement followed the company's intimation on May 25, 2026, that its Board of Directors would meet to consider these financial results, with the trading window for designated persons having been closed since April 1, 2026. Earlier, on April 30, 2026, City Online Services received a confirmation certificate from XL Softech Systems Limited, affirming compliance with Regulation 74(5) of the SEBI (Deposit Regulations 2018) for the quarter ended March 31, 2026, regarding dematerialized securities. Previously, on January 1, 2026, the company had closed its trading window for designated persons and their relatives, in accordance with its Code of Conduct for Prevention of Insider Trading, ahead of the declaration of unaudited results for the quarter ended December 31, 2025.