Integrity Infrabuild Developers' Rs 2.49 crore WIP unverified

Integrity Infrabuild Developers Limited's auditor said on November 6, 2026 that it could not verify the accuracy or potential financial-result impact of Rs 2.49 crore in work-in-progress and raw materials because detailed project-wise cost records were not maintained for the half year ended September 30, 2026.

What did the auditor say about Integrity Infrabuild Developers' inventory?

The auditor said Integrity Infrabuild Developers had not maintained detailed records for Rs 2.49 crore of work-in-progress, or WIP, and raw materials. The specific missing information was project-wise detail of costs incurred to date and costs yet to be incurred, according to the “Other Matter” section of the limited-review report dated November 6, 2026.

Jaymin Shah & Associates stated that, without those records, it was unable to verify the accuracy of the WIP value reflected in the financial results or assess its potential impact. The report did not quantify a potential overstatement, understatement or adjustment to the reported Rs 2.49 crore balance.

The issue concerns a construction-related balance whose value depends on allocating costs to individual projects and identifying future costs needed to complete them. Integrity Infrabuild Developers' filing says it undertakes construction and maintenance of infrastructure assets, including roads, bridges and buildings, within a single business segment.

Did the auditor give Integrity Infrabuild Developers a clean review conclusion?

Yes. Jaymin Shah & Associates said nothing had come to its attention causing it to believe the unaudited financial results for the half year ended September 30, 2026 were materially misstated or failed to make disclosures required under Regulation 33. That conclusion was issued alongside the separate “Other Matter” concerning the Rs 2.49 crore WIP and raw-material records.

The reviewer also made clear that its work was a limited review rather than an audit. It was conducted under Standard on Review Engagements, or SRE, 2410, and the report says review procedures consist primarily of inquiries of company personnel and analytical procedures applied to financial data. The firm said it had not performed an audit and therefore did not express an audit opinion.

The filing contains two statements with different scopes. The overall limited-review conclusion addresses whether the submitted financial results appeared to meet applicable accounting and disclosure requirements, while the other-matter paragraph specifies that the reviewer could not verify the Rs 2.49 crore WIP valuation or evaluate the effect that uncertainty could have on the results.

Why do project-wise WIP records matter for reported results?

Project-wise records matter because Integrity Infrabuild Developers reported Rs 2.49 crore of WIP and raw materials, yet the auditor lacked the costs incurred and costs still expected for each project. The report directly says this missing detail prevented verification of the recorded WIP value and prevented an assessment of its potential impact on the financial results.

The disclosure does not say that inventory was misstated. It says the auditor was unable to verify the amount due to missing supporting detail, leaving the size and direction of any possible difference unresolved. Nor does the limited-review report say whether the record gap affected every project, which projects were involved, or when the company began or stopped maintaining the detailed project information.

The half-year cash-flow statement shows a Rs 1.11 crore decrease in inventories, compared with a Rs 3.10 crore increase in the comparative period. Those movements are reported cash-flow adjustments and are not described by the auditor as the cause of the WIP-record issue.

What do the half-year figures show alongside the review warning?

Integrity Infrabuild Developers reported Rs 2.20 crore of net cash from operating activities in the current reported period, compared with net operating cash outflow of Rs 8.11 crore in the comparative period. The cash-flow statement also shows cash and cash equivalents closing at Rs 2.47 crore, compared with Rs 2.02 crore at the opening of the reported period.

Trade receivables increased by Rs 7.79 crore in the current reported period, versus a Rs 0.51 crore decrease in the comparative period. Loans, advances and other current assets increased by Rs 7.58 crore, compared with an Rs 8.82 crore increase previously, while trade payables and other liabilities increased by Rs 10.32 crore after a Rs 9.58 crore decrease in the comparative period.

These figures provide context for working-capital changes but do not resolve the inventory limitation. The report identifies only the absence of detailed records supporting Rs 2.49 crore of WIP and raw materials; it does not link that matter to the Rs 2.20 crore operating cash inflow, the Rs 7.79 crore receivables movement, or any disclosed revenue or profit measure.

What funds and planned financing did Integrity Infrabuild Developers disclose?

Integrity Infrabuild Developers disclosed that its Rs 12.00 crore initial public offer proceeds had been fully utilised by March 31, 2026. The stated allocation included Rs 5.03 crore for machinery and equipment, Rs 3.64 crore for working-capital requirements, Rs 2.40 crore for general corporate purposes and Rs 0.93 crore of issue-related expenses.

The company also disclosed a preferential issue of 11.70 lakh convertible warrants at Rs 108 each, aggregating to Rs 12.64 crore. By September 30, 2026, it had received Rs 6.08 crore, including Rs 2.92 crore from conversion of 3.60 lakh warrants into equity shares during the half year; the filing says the entire received amount was used for working-capital requirements.

A further Rs 6.56 crore was receivable on conversion of the remaining 8.10 lakh warrants as of September 30, 2026. The funds-utilisation certificate says there were no unutilised warrant proceeds at that date. It does not state that the funding activity corrects, replaces or is connected with the missing project-wise cost records for the Rs 2.49 crore inventory balance.

Conclusion

The limited-review report contains an explicit evidence gap over Rs 2.49 crore of WIP and raw materials. Although the auditor’s overall review conclusion said no material misstatement had come to its attention, it separately could not validate the WIP value or determine what effect, if any, the missing project-level records could have on the half-year financial results.

The disclosed next item to watch is conversion of the remaining 8.10 lakh warrants, from which Rs 6.56 crore was receivable at September 30, 2026. A later filing could also show whether Integrity Infrabuild Developers has provided project-wise records of incurred and remaining costs that address the verification limitation identified on November 6, 2026.