Kernex Microsystems (India) Limited has informed the Exchange regarding 'Appointment of Secretarial Auditors and Cost Auditors'.
KERNEX · price
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Awaiting price reaction for this filing.
Kernex Microsystems' Board met on 14 August 2025 and approved Q1 FY26 (ended 30 June 2025) unaudited financial results alongside several housekeeping items. Consolidated revenue nearly doubled year-on-year to Rs 5,592.99 lakhs (vs Rs 2,867.69 lakhs in Q1 FY25), while profit after tax rose to Rs 741.21 lakhs (vs Rs 356.86 lakhs), translating to a basic EPS of Rs 4.45 (vs Rs 2.16). Standalone revenue also jumped to Rs 5,339.77 lakhs with PAT of Rs 736.53 lakhs. The Board also appointed M/s M P R & Associates as Cost Auditors for FY26 and Mr. D. S. Rao as Secretarial Auditor for a five-year term (FY26–FY30), and approved the 33rd AGM notice. Notably, the statutory auditor issued a qualified opinion on the standalone results, flagging that the company has not impaired Rs 1,610.59 lakhs of investments and advances in its US subsidiary Avant-Garde Infosystems and the Kernex TCAS JV despite eroded net worth. An emphasis of matter was also raised on long-pending trade receivables of Rs 422.73 lakhs and margin money deposits of Rs 1,928.59 lakhs tied up in arbitration-related guarantees.
Strong YoY topline and profit growth is a positive for shareholders, but the qualified auditor opinion on unprovided impairments of Rs 1,610.59 lakhs and concerns over aged receivables and disputed margin money are red flags that warrant close monitoring. Investors should track progress on recoverability of subsidiary investments and resolution of the arbitration cases.