Dhenu Buildcon reviewer flags Rs 822.94 crore CIRP risk

Dhenu Buildcon Infra Limited’s reviewer flagged Rs 822.94 crore of advances without booked interest for the half year ended September 30, 2026, stating that management said most recipients were under the Corporate Insolvency Resolution Process and that the matter created a going-concern risk.

What did the reviewer flag in Dhenu Buildcon’s September 2026 results?

The reviewer identified a Securities and Exchange Board of India interim order, a Rs 160 crore loan without an interest provision, Rs 822.94 crore of advances without booked interest, and approximately Rs 175.17 crore of equity investments without adequate fair-value support. Rajesh H. Gupta & Co. issued the limited-review report on November 14, 2026 alongside Dhenu Buildcon’s unaudited results for the quarter and half year ended September 30, 2026.

The report’s standard conclusion said nothing had come to the reviewer’s attention indicating that the unaudited statement failed to meet applicable disclosure requirements or contained a material misstatement. However, it separately drew attention to the four matters. The review was conducted under Standard on Review Engagements 2410, which the report says provides moderate assurance through inquiries and analytical procedures rather than a full audit.

The reviewer said the transactions covered by the SEBI order substantially related to periods before its appointment as Dhenu Buildcon’s statutory auditor. It also recorded that management had furnished explanations on the SEBI matters, while adding that the explanations were “not conformity with laws.” The filing does not quantify the financial effect of the SEBI observations, unbooked interest or investment valuation issue at September 30, 2026.

What does the SEBI interim order say about Dhenu Buildcon?

The SEBI interim order dated August 19, 2026 contained prima facie observations regarding Dhenu Buildcon’s financial transactions, including alleged round-tripping of funds and related loan transactions. The reviewer said it considered the implications of that order in its limited review for the quarter and half year ended September 30, 2026.

The filing provides no transaction-level account of the alleged round-tripping, no names of counterparties and no quantified exposure from the SEBI order. It also does not state a timetable for a final SEBI outcome. The report’s description of the observations as prima facie reflects the wording of the interim order cited by the reviewer.

The balance sheet showed current loans of Rs 822.9473 crore at September 30, 2026, compared with Rs 821.9435 crore at March 31, 2026. That increase of Rs 1.0038 crore occurred in a reporting period in which the reviewer separately referred to Rs 822.94 crore of advances without booked interest.

Why did CIRP advances create a going-concern risk?

The reviewer said no interest had been booked during the audit period on advances of Rs 822.94 crore because, according to management, most of the entities receiving them were under the Corporate Insolvency Resolution Process, or CIRP. The report expressly stated that this situation created a risk to Dhenu Buildcon’s going concern.

The reported advances broadly correspond with the Rs 822.9473 crore of current loans on the September 30, 2026 balance sheet. The filing does not disclose the interest rates applicable to the advances, the names of recipients under CIRP, expected recoveries, impairment amounts or expected credit-loss provisions. It also does not quantify the interest income that may have been affected.

Dhenu Buildcon reported interest income of Rs 9.24 lakh for the quarter ended September 30, 2026, compared with Rs 1.19 crore in the quarter ended June 30, 2026. Half-year interest income was Rs 1.29 crore, compared with Rs 30.67 lakh for the half year ended September 30, 2025. The filing does not link this movement directly to the reviewer’s comments on the advances.

Dhenu Buildcon recorded a loss after tax of Rs 3.70 lakh in the September 2026 quarter, after profit after tax of Rs 84.37 lakh in the June 2026 quarter. For the half year ended September 30, 2026, it reported profit after tax of Rs 1.11 crore, against Rs 30.23 lakh a year earlier; the reported results do not quantify the accounting effect of unbooked interest.

What are the issues with the Rs 160 crore loan and investments?

The reviewer said a Rs 160 crore loan remained outstanding and management had said it would be converted into equity, so no interest was provided on it. Dhenu Buildcon’s September 30, 2026 balance sheet reported Rs 160 crore of non-current borrowings, unchanged from March 31, 2026 and lower than Rs 1,000 crore at March 31, 2025.

The filing does not provide a conversion date, equity conversion terms, the counterparty’s name or documentation supporting the planned conversion. The reviewer called the item a loan outstanding in the books, while the balance sheet presented Rs 160 crore as non-current borrowings; the filing does not explicitly reconcile those descriptions.

The reviewer also said equity-share investments of approximately Rs 175.17 crore continued at existing or book values without appropriate measurement and recognition at fair value under Indian Accounting Standard 109, Financial Instruments. It said that, without fair-value workings and sufficient documentation, it could not verify whether the carrying value and any resulting gain or loss were correctly recognised in profit and loss or other comprehensive income.

Dhenu Buildcon did not disclose the names of the investee companies, the valuation method, a potential fair-value adjustment or when supporting valuation records may be obtained. The absence of those details leaves the reported Rs 175.17 crore investment amount unverified by the reviewer for the September 30, 2026 results.

Conclusion

Dhenu Buildcon’s September 2026 filing reported half-year profit after tax of Rs 1.11 crore while disclosing reviewer concerns over Rs 822.94 crore of advances, a Rs 160 crore loan without an interest provision and Rs 175.17 crore of investments lacking verified fair-value support. The August 19, 2026 SEBI interim order added a regulatory matter involving prima facie observations on alleged round-tripping and related loan transactions.

The next disclosures to watch are any terms and timing for the proposed Rs 160 crore loan conversion into equity, recovery or accounting updates on advances involving CIRP entities, and fair-value evidence for the Rs 175.17 crore investments. Dhenu Buildcon’s filing also leaves the SEBI matter unresolved, with no final outcome or timetable disclosed as of November 14, 2026.