Andrew Yule & Company Limited review flags Rs 5.3192 crore PF charge

Andrew Yule & Company Limited’s limited-review report for the half year ended September 30, 2026 said Rs 5.3192 crore of penalty or demurrage related to delayed provident-fund payments had not been considered or accounted for, alongside Rs 62.5475 crore of delayed provident-fund liabilities and Rs 18.925 crore of gratuity liabilities.

What delayed employee-benefit liabilities did Andrew Yule report?

Andrew Yule reported delayed provident-fund liabilities of Rs 62.5475 crore and delayed gratuity liabilities of Rs 18.925 crore for various months as at September 30, 2026. The limited-review report also referred to delayed deposits of Deposit Linked Insurance, or DLI, and provident-fund administration charges, as well as delayed leave-encashment payments.

The provident-fund and gratuity figures total Rs 81.4725 crore, calculated from the two amounts disclosed in the reviewer’s Emphasis of Matter section. The filing did not give an ageing schedule, due dates, or a separate breakdown of the Rs 62.5475 crore figure among provident fund, DLI and administration charges.

How much provident-fund penalty remains unaccounted for?

Andrew Yule had not considered or accounted for Rs 5.3192 crore of penalty or demurrage relating to non-payment of provident-fund liabilities within the specified time, according to the report dated November 12, 2026. The reviewer identified this amount separately from the Rs 62.5475 crore of delayed provident-fund liabilities at September 30, 2026.

The delayed provident-fund liability plus the unaccounted penalty or demurrage comes to Rs 67.8667 crore. The report did not say whether a particular authority had levied the Rs 5.3192 crore amount, whether Andrew Yule disputes it, or when it may be payable.

How does the provident-fund amount compare with the SEBI penalty?

Andrew Yule provided for a separate Rs 71.41 lakh penalty levied by the Securities and Exchange Board of India, or SEBI, for non-compliance with Listing Obligations and Disclosure Requirements, or LODR, requirements. Unlike the Rs 5.3192 crore provident-fund penalty or demurrage, the SEBI penalty had been provided for in the financial statements.

The Rs 71.41 lakh SEBI penalty comprised Rs 60.73 lakh up to March 31, 2026, Rs 5.31 lakh for the quarter ended June 30, 2026, and Rs 5.37 lakh for the quarter ended September 30, 2026. Andrew Yule requested SEBI to waive the penalty, while the review report disclosed no corresponding waiver request for the provident-fund penalty or demurrage.

What do Andrew Yule’s September-half financial results show?

Andrew Yule reported a standalone net loss of Rs 21.4823 crore for the half year ended September 30, 2026, compared with a net profit of Rs 22.3197 crore for the corresponding half year ended September 30, 2025. This was a change of Rs 43.802 crore between the two reported half-year outcomes, although the filing did not attribute the movement to delayed employee-benefit payments.

Net sales or income from operations reached Rs 154.4733 crore in the September 2026 half year, up from Rs 126.9843 crore a year earlier. Total income, however, declined to Rs 167.4091 crore from Rs 198.3676 crore because other income fell to Rs 12.071 crore from Rs 70.7135 crore over the same comparison.

For the September 2026 quarter, Andrew Yule recorded net sales or income from operations of Rs 96.632 crore, compared with Rs 57.8413 crore in the preceding June 2026 quarter and Rs 71.508 crore in the September 2025 quarter. Its quarterly net loss narrowed to Rs 45.80 lakh from Rs 21.0244 crore in the June quarter, but was wider than the Rs 1.3598 crore loss reported in the year-earlier quarter.

Andrew Yule reported employee-benefit expense of Rs 108.4913 crore for the six months ended September 30, 2026, against Rs 100.1953 crore in the prior-year half. The filing does not reconcile that expense line to the Rs 81.4725 crore of delayed provident-fund and gratuity liabilities, so it does not establish the expense periods in which those liabilities were recognised.

What other matters did the reviewer identify?

Andrew Yule had introduced audit-trail features for financial transactions such as its cash book, but the reviewer said the Ministry of Corporate Affairs requires the whole accounting system to be under audit trail. The reviewer also cited significant manual intervention in consolidation and said the lack of an integrated system created a higher level of audit risk at September 30, 2026.

The report further noted that proposals to close wholly owned subsidiaries Yule Electrical Limited and Yule Engineering Limited were submitted to the Ministry of Heavy Industries on January 4, 2023. Andrew Yule had no agreement with these subsidiaries covering repayment terms for advances and interest recoverable of Rs 6.47 lakh and Rs 7.89 lakh, respectively.

The reviewer said its conclusion on the September 2026 standalone results was not modified in respect of the employee-benefit delays, audit-trail matters, subsidiary closure proposals or advances. The conclusion stated that nothing had come to the reviewer’s attention to indicate that the unaudited statement did not disclose information required under the SEBI listing regulations.

Conclusion

The September 2026 limited review identifies Rs 81.4725 crore of delayed provident-fund and gratuity liabilities, plus Rs 5.3192 crore of provident-fund penalty or demurrage that was not accounted for. These items appeared while Andrew Yule reported a Rs 21.4823 crore standalone loss for the half year, compared with a Rs 22.3197 crore profit a year earlier.

The next disclosed matters to watch are any update on payment or accounting treatment for the September 30, 2026 employee-benefit liabilities, SEBI’s response to Andrew Yule’s waiver request for Rs 71.41 lakh, and the status of the subsidiary-closure proposals submitted on January 4, 2023. The filing does not provide a timetable for any of these matters.