Outcome of Board Meeting
Price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Garnet International Ltd reported standalone profit after tax of Rs. 330.87 lakhs for FY2026, a significant turnaround from Rs. 9.73 lakhs loss in FY2025. Consolidated PAT stood at Rs. 474.75 lakhs vs a loss of Rs. 153.46 lakhs previously. However, auditors issued qualified opinions on both standalone and consolidated results citing non-compliance with Section 186(7) of Companies Act - the company failed to make interest provisions on inter-corporate loans of Rs. 1,112.80 lakhs and interest-free loans to subsidiary. Additionally, trade receivables of Rs. 228.71 lakhs from two NCLT-undergone parties remain unprovided. Operating cash flow was negative at Rs. 356.82 lakhs (standalone) and Rs. 356.89 lakhs (consolidated).
The qualified audit opinion and negative operating cash flows are red flags for investors. The company's failure to provision for interest income and the unprovided NCLT receivables create uncertainty around true profitability and asset quality. Despite reported profit growth, weak cash generation and regulatory compliance issues warrant caution.