Appointment of Internal Auditor of the Company
Awaiting price reaction for this filing.
Quasar India Ltd's Board appointed M/s. Shweta Jain & Co LLP as Internal Auditor for FY 2026-27. This appointment comes as a corrective measure following a qualified audit opinion from statutory auditors MA & Associates, who flagged that the company had failed to conduct internal audit despite Section 138 of the Companies Act 2013 being applicable. The auditors raised multiple concerns including unverifiable inventory of Rs 3,969.24 lakhs, unreconciled trade receivables/payables, non-filing of IT returns for FY 2024-25, outstanding tax demands, missing audit logs, and incomplete MSME disclosures. For FY 2025-26, the company reported a net loss of Rs 18.93 lakhs (vs profit of Rs 3.56 lakhs in prior year), with total income of Rs 142.62 lakhs. An ongoing IBC petition (Section 9) regarding a disputed advance payment for goods supply was also noted.
The appointment of an internal auditor is a positive governance step to address audit committee concerns, but the multiple qualified opinions reveal material weaknesses in internal controls, inventory management, and financial reporting. The company faces elevated risk of regulatory scrutiny and potential restatement of financials.