Enclosed herewith Clarification on FInancial Result for the year Ended 31st March, 2026
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Wardwizard Foods and Beverages has resubmitted its audited FY26 results, clarifying that the Cash Flow Statement and Segment Reporting were inadvertently left out of the original filing. The statutory auditor (Mahesh Udhwani & Associates) issued a Qualified Opinion, flagging Rs 760 lakhs of advances with no impairment provision and Rs 108 lakhs of financial assets with no Expected Credit Loss provision, plus an Emphasis of Matter on Rs 328.07 lakhs of borrowings where confirmations were not available. Revenue from operations jumped 156% to Rs 23,773.12 lakhs (from Rs 9,277.90 lakhs), driven largely by the Food Commodities segment. The company swung back to a profit of Rs 131.07 lakhs for FY26 versus a loss of Rs 1,368.64 lakhs in FY25. However, operating cash flow was deeply negative at Rs (1,373.63) lakhs, and trade receivables ballooned from Rs 64.58 lakhs to Rs 8,363.95 lakhs, indicating a large gap between reported earnings and actual cash collection.
Despite the headline return to profitability and strong revenue growth, the qualified audit opinion, negative operating cash flow, and massive surge in trade receivables raise red flags about earnings quality and collection risk. Shareholders should treat the FY26 numbers with caution and watch for follow-up clarification on the flagged advances and borrowings.