Coreintegra restatement shifts profit across FY24 to FY26

Coreintegra Consulting Services Limited restated prior-period staffing and compliance revenue and employee benefit expenses, lifting FY24 profit after tax by Rs 48.45 lakh to Rs 4.936 crore. The exercise reduced FY25 profit by Rs 30.87 lakh and increased FY26 profit by Rs 1.82 lakh, reflecting revised timing of entries and tax provisions.

How did Coreintegra restate prior-period revenue and expenses?

Coreintegra reassigned revenue and expenses to the financial years to which they pertained, rather than leaving them in the years in which they had originally been booked. The restatement covers revenue from staffing and compliance services and employee benefit expenses, according to the statement of adjustments for the years ended March 31, 2024, March 31, 2025 and March 31, 2026.

Coreintegra described the exercise as a correction of prior-period errors, reclassifications or other adjustments, not a change in significant accounting policies. Its accounting-policy disclosure says there was no change in significant policies during the reporting period, except when accounting standards issued under the Companies (Accounting Standards) Rules, 2021 became applicable on relevant dates.

Coreintegra recognises compliance-business income under the terms and conditions of service contracts when services are rendered. Staffing-services revenue is recognised at the gross value of consideration receivable, based on the substance of the agreement and the rendering of services. The restated annual results therefore depend on the underlying service dates, contract terms and expense periods supporting allocation to the relevant financial year.

What was the profit effect of Coreintegra’s restatement?

Coreintegra’s FY24 restated profit after tax was Rs 4.936 crore, compared with Rs 4.4515 crore in the audited accounts before restatement, an increase of Rs 48.45 lakh. FY25 restated profit after tax was Rs 3.4606 crore, down from Rs 3.7693 crore before adjustments, while FY26 restated profit after tax was Rs 4.5113 crore against Rs 4.493 crore previously reported.

The changes were concentrated in FY24 and FY25. The statement records a net profit-and-loss adjustment of Rs 48.45 lakh for FY24, negative Rs 30.87 lakh for FY25 and Rs 1.82 lakh for FY26. A negative adjustment reduced the previously audited result, whereas a positive adjustment raised it.

Across the three reported years, audited profit after tax totalled Rs 12.7138 crore and restated profit after tax totalled Rs 12.9079 crore. The difference is Rs 19.41 lakh based on the disclosed rounded figures, while the reserves reconciliation separately shows a Rs 19.40 lakh adjustment to opening reserves as at April 1, 2023.

Which entries drove the FY24 and FY25 revisions?

Coreintegra’s largest disclosed restatement category was employee benefit expense, at Rs 13.5257 crore in FY24 and Rs 3.624 crore in FY25. The statement also records prior-period revenue from operations adjustments of negative Rs 8.8745 crore for FY24 and negative Rs 4.7688 crore for FY25.

Prior-period other-expense adjustments moved in opposite directions in the two years. FY24 included negative Rs 4.2435 crore of other expenses, which reduced expenses in that year’s reconciliation, while FY25 included Rs 89.23 lakh of other expenses, which increased expenses. Those changes, together with the revenue and employee-expense allocations, produced the different after-tax effects in FY24 and FY25.

Coreintegra also adjusted gratuity, depreciation and tax. A short gratuity provision reduced FY24 profit by Rs 9,000 and increased FY25 profit by Rs 9,000; depreciation adjustments added Rs 43,000 in FY24 and reduced FY25 profit by Rs 3.88 lakh. Revised current-income-tax provisions added Rs 6.32 lakh in FY24, reduced FY25 profit by Rs 1.83 lakh and added Rs 1.82 lakh in FY26; FY24 also included Rs 1.01 lakh for deferred tax assets.

How did the restatement change Coreintegra’s reserves and surplus?

Coreintegra’s restated consolidated reserves and surplus at March 31, 2024 were Rs 19.4178 crore, compared with Rs 19.1273 crore before adjustments, an increase of Rs 29.05 lakh. At March 31, 2025, restated reserves and surplus were Rs 22.8784 crore, Rs 1.82 lakh below the pre-adjustment balance of Rs 22.8966 crore.

At March 31, 2026, both audited and restated reserves and surplus were Rs 19.7372 crore. The reconciliation shows an opening-reserves adjustment of Rs 19.40 lakh as at April 1, 2023 and cumulative adjustments made through the restated statement of profit and loss, which explains why the change in a year’s profit after tax does not necessarily equal the movement in that year’s closing reserves.

Coreintegra also made regroupings of income, expenses, assets, liabilities and cash flows where required. The disclosure says the regroupings aligned the restated information with the March 31, 2026 financial-information format, Schedule III of the Companies Act, 2013, applicable Accounting Standards and the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018.

What do the payroll-control disclosures mean for the restatement?

Coreintegra disclosed that the audit-trail feature did not operate throughout the year for its payroll software in FY24, FY25 and FY26. An audit trail, also called an edit log, records changes to accounting data. The FY26 software list identified Spine as the payroll system with no audit trail enabled, while Tally Prime, Ctrl F, Corepay and CoreX were shown with audit trails enabled for their listed functions.

The auditors also reported exceptions concerning daily backups of payroll software on a server located in India for Coreintegra in FY25 and FY26. For FY24, the audit reports said payroll-system audit trails were not enabled at database level for Coreintegra and a group entity, although other accounting software had an audit-trail feature operating for relevant transactions.

The FY25 and FY26 audit comments stated that the auditors did not identify an instance of audit-trail tampering. The control disclosures remain relevant to the restatement because employee benefit expenses, at Rs 13.5257 crore in FY24 and Rs 3.624 crore in FY25, were the largest stated prior-period adjustment category.

Did other audit matters require a restatement adjustment?

Coreintegra disclosed that certain audit qualifications and comments for FY24, FY25 and FY26 did not require corrective adjustment in the restated consolidated financial information. These included payroll audit-trail and backup exceptions, as well as qualifications under the Companies (Auditor’s Report) Order, 2020, or CARO 2020.

For FY25, Coreintegra disclosed that it was required to constitute an Audit Committee after conversion into a public company on October 14, 2024 because turnover had exceeded Rs 100 crore at March 31, 2024. The Audit Committee was constituted on March 27, 2025, and related-party transactions entered into from October 14, 2024 to March 26, 2025 received post facto approval on May 15, 2025.

Conclusion

Coreintegra’s restatement changes the pattern of its reported earnings across FY24 to FY26 rather than merely changing a single year’s result. Reallocating staffing and compliance revenue, employee benefit expenses and other expenses raised FY24 profit after tax by Rs 48.45 lakh, reduced FY25 profit after tax by Rs 30.87 lakh and had a Rs 1.82 lakh positive effect in FY26.

The next disclosed matter to watch is payroll-record control, because audit-trail operation and daily payroll-software backups were noted as exceptions in the FY25 and FY26 audit comments. Coreintegra identified Spine as the payroll system without an audit trail, but the supplied disclosure does not set out a later remediation plan or completion date.