Q2 FY26 results approved with major fraud red flags; new CFO, Rs 42 Cr warrant issue
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Board approved Q2 FY26 unaudited results showing standalone net profit of Rs 2.95 lakh against a loss of Rs 15.65 lakh YoY, with total revenue of Rs 24.83 lakh. However, auditor Asha & Associates issued a qualified opinion on both standalone and consolidated results, flagging an Rs 88.18 lakh fraud by former CFO Mr Ankit Sharma (fictitious payments and unauthorized fund transfers during FY25, no provision made). Auditor also could not verify proper use of Rs 10.69 crore from earlier warrants, Rs 5.32 crore advance for Gurugram land, Rs 21.44 crore in loans and advances, and Rs 6.37 crore in training expenses. CFO Gaurav Garg resigned; Krishan Bansal appointed. Board also approved sale of subsidiary Shikshan School and issuance of up to 42 crore convertible warrants at Re 1 each.
Serious governance red flags from a prior CFO fraud with no loss provision, multiple unverifiable transactions, and a qualified audit opinion. Combined with equity dilution via warrants and negative operating cash flow, shareholder risk is high.