Reappointment of Internal Auditors and Cost Auditors
MCLEODRUSS · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
McLeod Russel India Ltd reported audited financial results for FY2026 with an ADVERSE OPINION from statutory auditors Lodha & Co LLP. The company posted a net loss of Rs 9,086 lakhs for the year, though improved from Rs 19,636 lakhs loss in FY2025. Revenue declined marginally to Rs 99,672 lakhs from Rs 1,02,436 lakhs. Total equity stands at negative Rs 13,070 lakhs. The auditors cited multiple concerns: Inter Corporate Deposits of Rs 2,86,050 lakhs given to promoter entities that are doubtful of recovery, with Rs 2,44,629 lakhs provided for; non-recognition of interest on certain borrowings; and unresolved statutory liabilities. The company has undergone debt restructuring with NARCL (Rs 1,05,000 lakhs sustainable debt) and JCAF (OTS of Rs 15,000 lakhs). Management continues to prepare accounts on going concern basis dependent on successful execution of restructuring plans. Cost auditors M/s Mani & Co., SPK Associates, and DGM & Associates, along with internal auditors B.M. Chatrath & Co. LLP and V Singhi & Associates, were reappointed for FY2026-27.
The adverse opinion and negative equity (net worth erosion) signal extreme financial distress. The stock carries very high risk due to questionable ICD recoveries, ongoing regulatory scrutiny, and heavy dependence on successful debt restructuring execution. Shareholders face potential permanent capital loss if restructuring fails.