Procal Electronics' Rs 6.672 crore balances unverified

Procal Electronics India Limited reported Rs 6.672 crore of non-current trade receivables at September 30, 2026, but its auditor could not independently verify those and other balances because external confirmations were not obtained. The qualification accompanied unaudited results for the quarter ended September 30, 2026 and also covered payables, loans, advances and other balances.

Why did Procal Electronics receive a qualified review conclusion?

Procal Electronics received a qualified conclusion because it did not obtain confirmations for trade receivables, payables, loans, advances and other balances at September 30, 2026. SSRV & Associates said the missing evidence meant it could not independently verify the correctness, completeness and recoverability or payability of those balances.

The limited review covered the quarter ended September 30, 2026 and was conducted under Standard on Review Engagements 2410. The auditor said a review relies primarily on management inquiries and analytical procedures and provides less assurance than an audit, so it did not express an audit opinion. It also said the qualification matters were substantially the same as those identified by previous auditor P A M S & Associates.

The report does not identify a particular receivable, payable, loan or advance as misstated. Instead, it records an inability to independently establish the relevant balances without confirmations. Subject to the qualification matters, SSRV & Associates said nothing had come to its attention suggesting that the September 2026 results lacked required disclosures or contained a material misstatement.

Which balances are affected by Procal Electronics' missing confirmations?

The largest specifically reported affected balance is Procal Electronics' Rs 6.672 crore of non-current trade receivables at September 30, 2026. That figure was unchanged from March 31, 2026, while the supplied filing gives no customer-level ageing, counterparty names or due dates for the balance.

The confirmation issue also covers payables, loans, advances and other balances, although the review report does not quantify their combined value. Non-current trade payables to creditors other than micro and small enterprises were Rs 27.63 lakh at September 30, 2026, compared with Rs 27.47 lakh at March 31, 2026. Other financial liabilities rose to Rs 2.1989 crore from Rs 2.1742 crore, but the filing does not specify which components required third-party confirmation.

The unchanged Rs 6.672 crore receivable balance accounts for almost all of Procal Electronics' Rs 6.8822 crore total assets at September 30, 2026. Over the six months from March 31, 2026, non-current liabilities increased by Rs 2.62 lakh, reflecting a Rs 2.47 lakh rise in other financial liabilities and a Rs 16,000 increase in non-current trade payables.

How does the qualification relate to Procal Electronics' financial position?

The qualification relates to a September 30, 2026 balance sheet showing Rs 6.8822 crore of total assets, Rs 12.181 crore of non-current liabilities and Rs 25.50 lakh of current liabilities. SSRV & Associates said Procal Electronics' net worth was fully eroded by continuous losses and that there was material uncertainty over its ability to continue as a going concern.

Other equity was negative Rs 9.0537 crore at September 30, 2026, versus negative Rs 9.0275 crore at March 31, 2026. The Rs 2.62 lakh change corresponds to the reported net loss for the half year ended September 30, 2026. Equity share capital remained Rs 3.50 crore and non-current borrowings remained Rs 9.6378 crore across the two reporting dates.

Current assets were Rs 4,000 at September 30, 2026, entirely cash and cash equivalents, against current liabilities of Rs 25.50 lakh. The auditor specifically cited current liabilities exceeding current assets as a cause of serious financial stress. Cash and cash equivalents were also Rs 4,000 at March 31, 2026.

What other matters did the September 2026 auditor review identify?

The review identified nil inventory and nil movable and immovable property, plant and equipment at September 30, 2026. The balance sheet likewise showed no inventory or property, plant and equipment amount, leaving the Rs 6.672 crore non-current receivable balance as the dominant reported asset.

SSRV & Associates also said Procal Electronics' bank accounts remained inoperative because Know Your Customer requirements were pending. The filing does not set a date for completing those requirements, although it reported Rs 4,000 of cash and cash equivalents at both September 30, 2026 and March 31, 2026.

Procal Electronics said it was non-operational and had no employee cost at the reporting date. It said Labour Codes effective November 21, 2025 had no current impact on interim results, and classified its activity as a single operating segment under Indian Accounting Standard 108, so no segment disclosures were provided.

The company reported a Rs 1.31 lakh net loss for the quarter ended September 30, 2026, compared with a Rs 1.16 lakh loss in the quarter ended September 30, 2025. Its half-year loss was Rs 2.62 lakh, versus Rs 2.32 lakh in the corresponding prior-year period, and the displayed results showed no revenue from operations.

Conclusion

Procal Electronics' September 2026 qualification concerns the absence of independent confirmation for balances led by Rs 6.672 crore of non-current trade receivables. The matter sits alongside total assets of Rs 6.8822 crore, negative other equity of Rs 9.0537 crore, nil inventory and the auditor's material-uncertainty observation on going concern.

The next disclosed matters to watch are whether Procal Electronics obtains balance confirmations, completes pending Know Your Customer requirements for its bank accounts and reports any movement in the Rs 6.672 crore receivable balance. The filing gives no timetable for these steps, while the company said on November 6, 2026 that it remained non-operational.