As Per outcome
Awaiting price reaction for this filing.
Procal Electronics India Limited reported its FY2026 results with a severe adverse opinion from statutory auditors. The company has no business operations, fully eroded net worth, and incurred cash losses for consecutive years. Canara Bank took possession of the Silvassa manufacturing unit under SARFAESI Act and sold assets/inventories through e-auction for approximately Rs. 49.07 lakh, adjusted against outstanding bank dues. Auditors could not verify accounting treatment for these transactions, inventory write-offs, and trade receivables/payables due to lack of supporting documents. The company's bank accounts were inoperative, with transactions being routed through directors' personal accounts. The company declared an unmodified opinion, but auditors explicitly issued an adverse opinion citing material uncertainty about going concern. Related party transaction of Rs. 87,337 was recorded as a loan from Managing Director.
This is an extremely high-risk filing. The adverse auditor opinion, complete erosion of net worth, zero business operations, and pending bank recovery proceedings indicate the company faces existential financial distress. Shareholders should be aware that the auditors explicitly doubt the company's ability to continue as a going concern.