As required by the Stock Exchange, the Company hereby submits its response in connection with the Statement of Impact of Auditors qualification pursuant to Regulation 33(3)(d) of SEBI Listing ....
Awaiting price reaction for this filing.
GB Global Ltd has submitted its response to BSE's queries regarding the qualified audit opinion on its FY25 financial results. Statutory auditor Bhuta Shah & Co LLP issued a qualified opinion on both standalone and consolidated results due to two issues: (1) complete inventory details (quantity and valuation) as at March 31, 2025 were not made available, and (2) trade payables, trade receivables, advances, and GST balances are subject to confirmation and reconciliation. The company says the impact is unascertainable as qualifications are qualitative. Standalone net profit stood at Rs 10,816.36 lakhs with EPS of Rs 21.62; consolidated net profit was Rs 10,610.14 lakhs with EPS of Rs 21.21. An exceptional item of Rs 500.55 lakhs relates to a settlement paid to Indian Bank, a dissenting financial creditor, with the matter now amicably settled and the case withdrawn. The business operates in Textiles and Infrastructure Projects segments.
The auditor's qualification on inventory and receivables verification is a governance and transparency red flag that may concern investors despite the company reporting strong profits. The Indian Bank settlement appears to close a legacy legal issue from the company's earlier resolution plan process, which removes an overhang, but the recurring inability to provide complete inventory data is something shareholders should monitor closely.