Update on submission of Updated statement on impact of Audit qualification for the year and quarter ended 31st march 2025
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Constronics Infra Ltd resubmitted its Statement on Impact of Audit Qualification for the quarter and year ended March 31, 2025. Statutory auditor B. Thiagarajan & Co. issued a QUALIFIED OPINION, flagging that Rs 5.87 lakhs of company cash was seized by an investigating agency in a matter unrelated to the company's business, and no provision was made. Had a provision been recognized, full-year profit before tax would have been Rs 431.59 lakhs instead of the reported Rs 437.46 lakhs. This is a repeated qualification — it also appeared in the FY24 audit by the predecessor auditor S.C. Ajmera & Co., who has since been replaced. For FY25, the company reported total income of Rs 5,097.45 lakhs and net profit of Rs 313.88 lakhs. However, cash flow from operations was sharply negative at Rs (1,819.77) lakhs, driven by large increases in receivables, inventories, and other assets.
The qualification itself is small (Rs 5.87 lakhs, less than 2% of PBT) but is recurring and tied to an unresolved regulatory seizure of company funds, which is a governance red flag. The deeply negative operating cash flow against reported profits suggests working capital strain and is a cause for concern despite the audit's qualification being minor.