Bharat Road Network Limited has informed the Exchange regarding Change in Auditors of the company.
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The board approved unaudited Q1 FY26 results (quarter ended June 30, 2025). On a standalone basis, the company swung to a profit after tax of Rs. 122.30 lakhs versus a loss of Rs. 612.48 lakhs in the year-ago quarter; consolidated profit after tax was Rs. 1,335.01 lakhs versus a loss of Rs. 1,095.36 lakhs. Despite the headline saying 'change in auditors', the actual change is the appointment of M/s. M.R. & Associates as the new Secretarial Auditor for 5 years (FY 2025-26 to FY 2029-30); the statutory auditor S S Kothari Mehta & Co. LLP continues and issued the limited review report. The 18th AGM is fixed for September 26, 2025 via video conferencing. The statutory auditor flagged a qualified conclusion (interest of Rs. 3,957.34 lakhs not provided on Rs. 19,357.73 lakhs of promoter-group debt since July 2024), a material going-concern uncertainty due to loan defaults and significant accumulated losses, and ongoing PMLA search proceedings and a Rs. 12,521.42 lakh asset freeze at subsidiary Guruvayoor Infrastructure (GIPL).
The headline profit masks serious red flags: a 'going concern' qualification from the auditor, defaults on promoter-group borrowings, a PMLA case at a key subsidiary, and unresolved termination of two associate road projects. Retail investors should treat the turnaround in numbers with caution until debt restructuring, PMLA appeal, and associate claims (Rs. 86,087 lakhs at KEPL, Rs. 214,916 lakhs at MTPL) are resolved.