Raconteur Global Resources auditor flags Rs 80.802776737 crore loan

Raconteur Global Resources Limited received a qualified limited-review conclusion for the half year ended 30 September 2026 after its reviewer found no recoverability assessment for a Rs 80.802776737 crore unsecured related-party loan, equal to 68.17% of standalone assets. The reviewer also said interest on the balance had not been recognised during the half year.

Why did Raconteur Global Resources receive a qualified review conclusion?

Raconteur Global Resources received the qualification because Kapil Sandeep and Associates was not provided an assessment of whether the Rs 80.802776737 crore loan to Dhull Trading Private Limited was recoverable at 30 September 2026. Dhull Trading is an entity in which a director of Raconteur Global Resources is interested, according to the review report dated 14 November 2026.

The reviewer said it was therefore unable to determine whether a provision was required. If a provision is required, it would increase the reported standalone net loss and reduce loans and advances and net worth. The qualified conclusion states that, except for the possible effects of this matter, nothing came to the reviewer’s attention suggesting the standalone results failed to meet the required disclosure standards.

This was a limited review, not an audit opinion. The reviewer said its procedures under Standard on Review Engagements 2410 provide moderate assurance and are more limited than an audit, with work focused mainly on management inquiries and analytical procedures for the half year ended 30 September 2026.

How large is the Dhull Trading loan on Raconteur Global Resources' balance sheet?

The Dhull Trading loan was Rs 80.802776737 crore at 30 September 2026, up from Rs 54.196541044 crore at 31 March 2026. The Rs 26.606235693 crore increase meant the balance represented 80.04% of Raconteur Global Resources' total loans and advances and 68.17% of standalone total assets at the September reporting date.

Standalone total assets rose to Rs 118.5405 crore at 30 September 2026 from Rs 85.9111 crore at 31 March 2026. Long-term loans and advances were Rs 92.9989 crore and short-term loans and advances were Rs 7.9591 crore, together accounting for Rs 100.958 crore of the September asset base.

The loan increase of Rs 26.606235693 crore accounted for most of the Rs 32.6294 crore rise in total assets over the six-month period. The filing does not disclose the loan’s security, maturity, repayment schedule, interest rate or management’s recovery analysis, leaving those terms outside the information examined in the review report.

What was the interest-recognition issue on the related-party loan?

Raconteur Global Resources did not recognise interest on the Dhull Trading loan for the half year ended 30 September 2026 because management intended to account for it at year end. The reviewer said this was contrary to Accounting Standard 9, Revenue Recognition, and Accounting Standard 25, Interim Financial Reporting, which require interest to be recognised in the period in which it accrues.

The report does not quantify the interest that should have been recorded. It consequently establishes a timing departure from the two cited accounting standards, but does not provide enough information to calculate any adjustment to income, profit or the loan balance for the September half year.

The cash-flow statement separately records Rs 47.76 lakh of interest income for the half year ended 30 September 2026, while the standalone results show finance cost of Rs 4.0736 crore. Neither disclosure identifies the interest associated with the Dhull Trading balance, so neither figure can be treated as the unrecognised amount cited by the reviewer.

How did Raconteur Global Resources' standalone results change in September 2026?

Raconteur Global Resources reported standalone total revenue of Rs 5.8913 crore and a loss before tax of Rs 2.307 crore for the half year ended 30 September 2026. In the half year ended 31 March 2026, total revenue was Rs 7.782 crore and loss before tax was Rs 5.9366 crore, based on the periods presented in the financial-results statement.

Revenue from operations increased to Rs 4.8938 crore in the September 2026 half year from Rs 2.9983 crore in the March 2026 half year. However, other income fell to Rs 99.75 lakh from Rs 4.7837 crore, causing total revenue to decline by Rs 1.8907 crore between the two reported periods.

Total expenses decreased to Rs 8.1983 crore from Rs 13.7186 crore, while finance cost increased to Rs 4.0736 crore from Rs 2.7605 crore. Paid-up equity share capital rose to Rs 18.0278 crore from Rs 10.7778 crore, and short-term borrowings increased to Rs 88.4103 crore from Rs 60.3153 crore; the review report does not state that either change resolves the loan recoverability or interest-recognition matters.

How does the consolidated review differ from the standalone review?

The consolidated review contains the same Rs 80.802776737 crore Dhull Trading loan issue, but measures it at 57.41% of group loans and advances and 42.57% of group total assets at 30 September 2026. As with the standalone accounts, the reviewer said any required provision would raise consolidated net loss and reduce loans and advances and net worth.

The consolidated conclusion also identified a separate matter at Raconteur Granite Limited. The subsidiary had not provided half-year depreciation on property, plant and equipment carried at Rs 1.209612493 crore at 30 September 2026, which the reviewer said was inconsistent with Accounting Standard 10 and Schedule II of the Companies Act, 2013.

Raconteur Global Resources held 70.81% of Raconteur Granite, 100% of Skycrest Projects Limited and 51% of Rockbase Real Estate Projects Limited at 30 September 2026. The reviewer said interim information for all three subsidiaries had not been reviewed by their auditors and was management-certified, although it did not modify its conclusion solely for that matter.

Conclusion

The 30 September 2026 filing puts the Rs 80.802776737 crore Dhull Trading loan at the centre of Raconteur Global Resources' standalone qualified review. Its size, at 68.17% of standalone assets and 80.04% of loans and advances, combined with the absent recoverability assessment means the potential provision cannot be measured from the disclosed information. The unrecognised half-year interest is a separate departure identified under Accounting Standards 9 and 25.

The next disclosed step is management’s plan to account for the loan interest at year end. Readers should also watch for a recoverability assessment and any resulting provision on the Dhull Trading balance, as well as depreciation accounting at Raconteur Granite on its Rs 1.209612493 crore of property, plant and equipment, because these remain unresolved in the 14 November 2026 review reports.