JPT Securities auditor flags Rs 2.85 crore overdue dues

JPT Securities Limited faced an auditor flag that Rs 2.85 crore of statutory dues had been unpaid for more than six months at September 30, 2026, while management described the liquidity issue as temporary. The standalone balance sheet also showed negative equity of Rs 3.10 crore and pending income-tax cases without a quantified provision.

What did the auditor flag at JPT Securities?

The auditor flagged Rs 2.85 crore of statutory dues that had been outstanding for more than six months because JPT Securities was facing liquidity issues. JMT & Associates made the observation in its limited review report for the quarter and six months ended September 30, 2026, dated November 14, 2026. The filing does not identify the type of statutory dues, their payment dates or a proposed settlement schedule.

The auditor also said JPT Securities was handling pending income-tax cases for which the actual liability, including interest up to the September 30, 2026 balance-sheet date, had not been assessed or determined. Any additional tax liability and related interest had therefore not been provided in the books. The filing does not quantify the potential tax exposure or state when the cases may be resolved.

JMT & Associates said its report was not modified in respect of these matters. The firm conducted a limited review under Standard on Review Engagements 2410, which it said is substantially narrower than an audit, and concluded that nothing had come to its attention indicating a material misstatement in the September 2026 standalone results.

How did JPT Securities’ balance sheet change by September 2026?

JPT Securities reported negative equity of Rs 3.10 crore at September 30, 2026, compared with negative Rs 3.41 crore at March 31, 2026. Equity share capital was unchanged at Rs 3.01 crore, while other equity improved to negative Rs 6.11 crore from negative Rs 6.41 crore. The six-month period produced reported profit of Rs 30.71 lakh.

Total assets increased to Rs 1.34 crore from Rs 86.94 lakh over the six months to September 30, 2026. Other financial assets rose to Rs 1.16 crore from Rs 40.01 lakh, while investments declined to Rs 33,000 from Rs 29.22 lakh. Cash and cash equivalents were largely unchanged at Rs 15.84 lakh, compared with Rs 15.86 lakh at March 31, 2026.

Financial liabilities rose to Rs 1.30 crore at September 30, 2026 from Rs 1.19 crore at March 31, 2026, as borrowings increased to Rs 1.02 crore from Rs 85.36 lakh. Other financial liabilities fell to Rs 27.73 lakh from Rs 33.67 lakh. Provisions declined to Rs 2.85 crore from Rs 3.07 crore, while long-term non-financial liabilities rose to Rs 29.21 lakh from Rs 1.50 lakh.

What were JPT Securities’ September-half earnings and cash flows?

JPT Securities reported a profit of Rs 30.71 lakh for the six months ended September 30, 2026, compared with a loss of Rs 6.59 crore in the corresponding six months of 2025. The change coincided with a Rs 47.11 lakh reversal of provision for expected credit loss, or ECL, in the latest half-year, against a Rs 6.49 crore impairment loss on financial assets in the prior-year half-year. Total income was nil in the latest period, versus Rs 10.47 lakh of interest income a year earlier.

For the quarter ended September 30, 2026, JPT Securities posted a loss of Rs 4.60 lakh, compared with profit of Rs 35.31 lakh in the June 2026 quarter and loss of Rs 6.56 crore in the September 2025 quarter. September-quarter employee-benefit expense was Rs 3.02 lakh and other expenses were Rs 2.99 lakh. The quarter included a Rs 1.50 lakh reversal of impairment losses on financial assets.

Operating cash flow was negative Rs 94.02 lakh for the six months ended September 30, 2026, compared with negative Rs 13.71 lakh for the year ended March 31, 2026, as labelled in the cash-flow statement. The latest half-year included a Rs 75.94 lakh increase in trade and other receivables. Cash generated from operations was negative Rs 94.02 lakh despite the reported first-half accounting profit.

Investing activities generated Rs 76 lakh in the latest half-year, comprising Rs 28.89 lakh related to investments and Rs 47.11 lakh from reversal of unused impairment allowance or ECL. Financing activities provided Rs 18 lakh, including Rs 16.50 lakh from an increase in short-term borrowings. Net cash and cash equivalents declined by Rs 2,000, from opening cash of Rs 15.85 lakh to closing cash of Rs 15.83 lakh in the cash-flow statement.

What has management said about JPT Securities’ liquidity issue?

Management said JPT Securities’ liquidity issue was temporary and would be resolved soon because all loans and advances were good and recoverable in full. In the representation cited by JMT & Associates, management also said there was no going-concern issue and no provision was required that would affect financial results or financial position at the September 2026 results cut-off date.

The September 30, 2026 balance sheet reported no loans, while other financial assets stood at Rs 1.16 crore. The auditor’s report refers more broadly to loans and advances, but the filing does not identify individual receivable balances, counterparties, expected recovery dates or the basis for recoverability. It similarly gives no date for clearing the Rs 2.85 crore of overdue statutory dues.

JPT Securities said it operates in a single segment, so the September 2026 filing contains no segment-level revenue, profit or cash-flow split. The board approved the standalone unaudited results on November 14, 2026 and said JPT Share Services Private Limited had ceased to be an associate company from June 10, 2026, resulting in standalone presentation of the results.

What are the next disclosed corporate events for JPT Securities?

JPT Securities has scheduled its 32nd annual general meeting for December 10, 2026, at the Kilachand Conference Room in Mumbai. The board also ratified the reappointment of Chintan Chheda as whole-time director from November 13, 2026 for two years, subject to shareholder approval at that meeting.

The November 14, 2026 board meeting ran from 4:15 pm to 4:45 pm and approved the September-quarter and half-year results under Regulation 33 of the Securities and Exchange Board of India Listing Obligations and Disclosure Requirements Regulations, 2015. The company did not disclose a capital-raising plan, statutory-dues repayment timetable or quantified income-tax provision alongside that outcome.

Conclusion

The September 2026 filing shows a balance sheet with negative Rs 3.10 crore equity, overdue statutory obligations of Rs 2.85 crore and unresolved tax matters whose eventual liability has not been determined. Although the half-year result moved to a Rs 30.71 lakh profit from a Rs 6.59 crore loss a year earlier, the comparison included reversals of credit-loss and impairment allowances, while operating cash flow was negative Rs 94.02 lakh.

The next disclosed event is the December 10, 2026 annual general meeting, where Chintan Chheda’s reappointment requires shareholder approval. Subsequent disclosures will show whether JPT Securities settles the overdue dues, assesses the pending tax cases and converts management’s stated recoverability of loans and advances into cash collections.