Appointment of Secretarial and Tax Auditor
Price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Mishtann Foods reported its Q1 FY26 (quarter ended June 30, 2025) results on August 8, 2025. Standalone revenue fell sharply to ₹7,078.91 lakhs from ₹12,236.64 lakhs a year ago, with net profit dropping to ₹94.21 lakhs (vs ₹125.73 lakhs YoY). Consolidated revenue rose marginally to ₹38,605.37 lakhs, but net profit of ₹8,266.27 lakhs heavily relies on an unreviewed UAE subsidiary. The statutory auditor issued a qualified opinion flagging serious issues: a SEBI show-cause notice (Dec 2024) alleging fictitious sales/purchase transactions over FY2017-18 to FY2023-24, trade receivables equal to 97% of total assets (₹42,672.78 lakhs), a GST demand of ₹20,684.38 lakhs, disputed income tax demand of ₹11,744 lakhs, missing audit trail in accounting software, and no ECL provision on receivables. The board also appointed Kamlesh M. Shah & Co. as Secretarial Auditor for 5 years and H Thakkar & Co. LLP as Tax Auditor for FY24-25.
Despite a routine auditor appointment, the qualified audit opinion reveals deep governance and going-concern red flags — SEBI allegations of fictitious transactions, a GST demand over 2.9x standalone quarterly revenue, and nearly the entire balance sheet locked in trade receivables. Shareholders should treat this as high-risk; standalone operations are weakening even as consolidated optics improve on paper due to the unverified subsidiary.