Reappointment of Internal Auditors
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The board approved audited standalone and consolidated financial results for Q4 and FY2026 ending March 31, 2026. The company reported total revenue of Rs 10,352.06 lakhs with a net loss of Rs 2,842.12 lakhs, compared to a net profit of Rs 695.03 lakhs in the previous year. Revenue recognition was revised downward by Rs 2,553 lakhs due to reassessment of project costs and margins on certain project management service contracts. Statutory auditors S.N. Karani & Co. issued an unmodified opinion. The board also reappointed M/S. S. M. Kulkarni and Co. as internal auditors for FY 2026-27. Key ratios deteriorated: Return on Equity turned negative at -39%, and Interest Service Coverage ratio dropped to -24.29x from 5.07x.
The significant net loss and negative operating cash flow of Rs 344.35 lakhs are concerning signals. The revenue revision due to project cost reassessments raises questions about contract profitability and revenue recognition practices. Shareholders should monitor the company's ability to return to profitability, given the substantial swing from profit to loss year-on-year.