Resignation of M/s Desai Bhansali & Associates LLP and Appointment of M/s Chintan D Shah & Associates as Internal Auditor of the Company for the FY 2025-26
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Karbonsteel Engineering reported its H1 FY26 (April–September 2025) results, with revenue from operations falling to Rs. 13,970.28 lakh from Rs. 16,710.01 lakh in H1 FY25, a drop of about 16%. Profit after tax declined to Rs. 703.28 lakh from Rs. 871.57 lakh, and EPS came in at Rs. 6.16 versus Rs. 7.85. The statutory auditor (Rao & Shyam) issued an unqualified limited review report but flagged that the company has an unpaid income tax liability of Rs. 403.23 lakh, pending registration of charges with the RoC for an ICICI Bank loan, and could not confirm trade receivable and sundry creditor balances. The board also accepted the resignation of internal auditor M/s. Desai Bhansali & Associates LLP effective November 12, 2025, citing 'preoccupation', and appointed M/s. Chintan D. Shah & Associates as the new internal auditor for FY 2025-26.
Both top line and bottom line shrank year-on-year, which may pressure the stock in the near term. The internal auditor change appears routine and is not a governance red flag, but investors should watch the unresolved tax dues and the lack of balance confirmations highlighted by the statutory auditor.