Please find enclosed herewith quarterly results for quarter ended 30.06.2025
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Awaiting price reaction for this filing.
Punjab Communications' Board approved the unaudited quarterly results for Q1 FY26 (ended 30 June 2025) at its 232nd meeting on 26 August 2025. However, the statutory auditor M/s Ashwani & Associates issued an Adverse Conclusion on the results. The auditor flagged multiple issues: inventory of raw materials was valued using the 'last purchase rate' instead of the company's stated FIFO policy, creating an unreconciled difference of ₹630.18 Lakhs between the balance sheet (₹7,214.27 Lakhs) and ERP data (₹11,844.45 Lakhs). Work-in-process and finished sub-assemblies were valued only at material cost rather than including labour and overheads. The company has no accounting policy for Expected Credit Loss (ECL) on trade receivables as required by Ind AS 109. The auditor deemed these misstatements 'pervasive' and said the results do not fairly present the company's financial position.
This is a serious red flag – an adverse auditor opinion signals deep accounting and internal control weaknesses that could erode investor confidence, invite regulatory scrutiny, and weigh heavily on the stock. Shareholders should treat the reported numbers with caution until the inventory reconciliation is resolved and an ECL policy is implemented.