Declaration regarding statement on impact of audit qualification on audit Report for the year ended on 31st March 2026
Awaiting price reaction for this filing.
Starlit Power Systems has submitted a declaration on the impact of audit qualifications for its FY26 results. The statutory auditor (CA Rahul Jain) issued an Adverse Opinion on both standalone and consolidated financial statements. Key concerns flagged include non-provision of interest on loans and non-compliance with IND-AS accounting standards, which may significantly affect the financials. This is the first time these qualifications have appeared. The numbers paint a grim picture: turnover of just ₹43 lakhs but a standalone net loss of ₹1,742.58 lakhs (loss per share of ₹8.53) and consolidated net loss of ₹1,873.97 lakhs. Net worth stands at ₹95,131.06 lakhs (standalone) and ₹96,531.95 lakhs (consolidated). Management says it is actively working to address the auditor's concerns and will comply with IND-AS from next year.
An adverse audit opinion is a serious red flag indicating the financial statements may not show a true and fair picture of the company. Shareholders should treat this as a material governance and credibility concern, which could weigh on investor confidence and stock price.