Innovative Tech Pack Limited review cites Rs 15.42 lakh cash wages

Innovative Tech Pack’s limited-review report for the half year ended September 30, 2026 cited Rs 15.42 lakh of cash wage payments, Rs 27.66 lakh of unpaid prior-year bonus, no internal-audit report and delayed MSME payments, while the reviewer said its conclusion was not qualified on these matters.

What did Innovative Tech Pack’s reviewer highlight?

Innovative Tech Pack’s reviewer, Mahesh Yadav & Co., included four matters in an Emphasis of Matter section dated November 13, 2026: wages paid in cash, pending bonus from previous financial years, no internal audit through September 2026, and payments to micro, small and medium enterprise, or MSME, creditors beyond 45 days. The reviewer expressly stated that its report was not qualified in respect of these matters.

The review covered standalone unaudited results for the half year ended September 30, 2026. Mahesh Yadav & Co. said it conducted the work under Standard on Review Engagements 2410, which involves inquiries and analytical procedures and provides moderate assurance rather than the assurance of an audit. It said nothing had come to its attention indicating that the results lacked disclosures required under Regulation 33 of the Securities and Exchange Board of India’s Listing Obligations and Disclosure Requirements Regulations, 2015, or contained a material misstatement.

The reviewer’s emphasis did not alter the reported financial result. Innovative Tech Pack recorded a Rs 9.42 lakh loss before and after tax for the half year ended September 30, 2026, compared with a Rs 21.70 lakh profit in the half year ended September 30, 2025. No current, deferred or earlier-year tax expense was reported in either half-year period.

How much did Innovative Tech Pack pay as cash wages?

Innovative Tech Pack said it paid Rs 15.42 lakh of contract-worker wages in cash during the half year ended September 30, 2026, following workers’ requests. The reviewer referred to this disclosure in connection with payment of wages in cash rather than through banking channels under the Payment of Wages (Amendment) Act, 2017.

Management said individual payments to contract workers were above the limits specified in laws governing provident fund and Employees’ State Insurance, or ESI, and that no provident-fund or ESI liability arose on that basis. Innovative Tech Pack also said it had exercised relevant processes for due control. The filing did not give the number of workers paid in cash, payment dates, or a worker-wise break-up of the Rs 15.42 lakh amount.

The disclosed cash wages were separate from the company’s broader employee-benefit expense. Employee-benefit expense was Rs 3.782 crore in the half year ended September 30, 2026, down from Rs 4.4122 crore in the comparable 2025 half year. The results do not state how much of employee-benefit expense related to contract workers or whether the cash payments were included in a particular employee-cost line.

What is the status of Innovative Tech Pack’s unpaid bonus?

Innovative Tech Pack disclosed Rs 27.66 lakh of bonus relating to previous financial years remained unpaid at September 30, 2026. It also said that an exact employee-wise and financial-year-wise break-up was unavailable, leaving no ageing schedule or employee-level allocation in the filing.

The bonus disclosure was one of the matters specifically cited by Mahesh Yadav & Co. in its Emphasis of Matter section. The reviewer did not quantify the number of employees affected, identify the financial years to which the amount related, or state an expected payment date. The company’s half-year results similarly disclosed no provision movement for this pending amount.

A separate note concerned the company’s dividend account for financial year 2016-17. Innovative Tech Pack said Axis Bank had charged amounts to its dividend account which it considered against the law, and that it was communicating with bank personnel for rectification as at the financial-statements date. Unpaid dividend in the books was Rs 12.05043 lakh at September 30, 2026, but shareholder-wise and amount-wise records were unavailable for verification.

Why was there no internal audit at Innovative Tech Pack?

Innovative Tech Pack said no internal audit had been conducted during the half year ended September 30, 2026. The review report described the matter as no internal audit for financial year 2025-26 through September 2026 and said no report was available in the records to substantiate management’s stated position.

Management told the reviewer that it had an internal-audit team to conduct the work. However, the filing does not state when that team was appointed, the sites or controls it reviewed, or when an internal-audit report would be issued. Mahesh Yadav & Co. highlighted the lack of a report but did not qualify its limited-review conclusion.

The absent report coincided with several balances identified by Innovative Tech Pack as subject to confirmation at September 30, 2026. These included trade receivables, advances, unsecured loans, security deposits and trade payables. Trade receivables fell to Rs 20.2335 crore from Rs 22.4744 crore at March 31, 2026, while trade payables other than those due to micro enterprises and small enterprises rose to Rs 25.9276 crore from Rs 25.5221 crore.

What did Innovative Tech Pack disclose about MSME payments?

Innovative Tech Pack said it had not paid interest on amounts paid beyond the appointed date to MSME creditors where payment was due for more than 45 days, based on payment terms in supply agreements with vendors. Mahesh Yadav & Co. cited non-payment to MSME creditors within 45 days as the fourth Emphasis of Matter item.

The filing does not quantify the delayed MSME invoices, the interest unpaid, the number of vendors involved or the age of the oldest balance. Its September 30, 2026 balance sheet showed Rs 61.82 lakh of trade payables due to micro enterprises. Total current liabilities were Rs 35.6521 crore at September 30, 2026, compared with Rs 35.3059 crore at March 31, 2026.

The notes also said goods and services tax input claimed in the books and in GSTR-3B, the GST summary return, was subject to reconciliation for the half year ended September 2025. Separately, Innovative Tech Pack said gratuity and leave-encashment provisions would be made only at year-end based on an actuarial valuation report, without disclosing a September 2026 provision amount for those items.

Conclusion

The September 2026 limited review combined four specified payroll, audit-process and creditor-payment matters with an unqualified review conclusion. Innovative Tech Pack’s reported half-year result moved to a Rs 9.42 lakh loss from a Rs 21.70 lakh profit a year earlier, while the reviewer did not say the highlighted matters caused a material misstatement in the standalone results.

The next disclosures to watch are an internal-audit report from the team management said it had, payment of the Rs 27.66 lakh prior-year bonus, and any quantification of MSME overdue interest or invoices. The filing gives no completion date for those actions, while it says gratuity and leave-encashment provisions will be considered at year-end after an actuarial valuation.