Shri Keshav auditor qualifies results over Rs 8.5963 crore GST

Shri Keshav Cements and Infra Limited received a qualified review conclusion on its September 30, 2026 results because the auditor could not assess the financial-statement effect of Rs 8.5963 crore of GST payments, interest and penalties recorded in current assets while the DGGl investigation remained incomplete and no order had been issued.

Why did Shri Keshav receive a qualified conclusion?

Shri Keshav received the qualified conclusion because Singhi & Co. could not comment on the effect of Rs 8.5963 crore of unresolved GST-related payments on the September 2026 financial results. The auditor said Rs 6.4152 crore was paid as advance Goods and Services Tax (GST), while Rs 2.1811 crore represented interest and penalties. Both amounts were included in other current assets at September 30, 2026.

The payments were made in financial years 2020-21 and 2021-22 following a search by GST Intelligence at Shri Keshav’s premises. According to the review report dated November 12, 2026, the underlying GST liability pertains to financial years 2018-19 and 2019-20. The auditor said the DGGl investigation was incomplete and no order had been passed as of the September 30, 2026 reporting date.

Singhi & Co. performed a limited review of the three months ended September 30, 2026 and the six months from April 1, 2026 to September 30, 2026. The firm said a limited review is substantially narrower than an audit. Except for the possible effects of the GST matter, it said nothing had come to its attention indicating that the results did not meet Regulation 33 disclosure requirements or contained a material misstatement.

What remains unresolved in Shri Keshav’s GST case?

The unresolved matter is the eventual treatment and financial effect of the Rs 8.5963 crore balance because the DGGl investigation had not concluded by September 30, 2026. The filing does not state whether the advance GST payment will be recovered, adjusted against a determined liability or treated in another manner after an order is issued.

Shri Keshav presents the amount as an advance payment and related interest and penalties, rather than as a final GST expense or a settled tax demand. That accounting presentation is central to the qualification: the auditor could not determine the effect on the financial results while the investigation and order process remained unfinished. The review report does not quantify any possible adjustment to reported assets, profit or equity.

The filing also does not provide a scheduled date for completion of the DGGl investigation, a management estimate of the final liability, or a separately disclosed provision for a possible adverse outcome. The board approved the unaudited September 2026 results on November 12, 2026, the same date as the limited review report, leaving the issue unresolved in the approved statements.

Where does Shri Keshav record the GST-related balance?

Shri Keshav records the Rs 8.5963 crore GST-related balance within other current assets, which stood at Rs 12.5042 crore on September 30, 2026, compared with Rs 10.6804 crore on March 31, 2026. The auditor expressly identified the GST payments as part of that line item, but did not provide a reconciliation of each component within the reported balance.

Total current assets rose to Rs 74.8963 crore at September 30, 2026 from Rs 67.0245 crore at March 31, 2026. In contrast, total assets declined to Rs 420.5129 crore from Rs 423.2212 crore over the same six-month period. The filing does not attribute either movement to the GST investigation, so neither change establishes an effect from the qualified matter.

Total equity was Rs 75.4526 crore at September 30, 2026, down from Rs 89.6874 crore at the March 2026 year-end. Total liabilities increased to Rs 345.0603 crore from Rs 333.5338 crore. Singhi & Co. did not link these balance-sheet movements to the GST matter, and the company’s filing does not identify the investigation as their cause.

How did Shri Keshav perform in the September 2026 period?

Shri Keshav reported a loss before tax of Rs 7.7672 crore for the three months ended September 30, 2026, compared with profit before tax of Rs 1.1804 crore in the corresponding quarter of 2025. For the six months ended September 30, 2026, it reported a loss before tax of Rs 11.9879 crore, against profit before tax of Rs 4.0606 crore a year earlier. The auditor did not say the GST issue caused these reported losses.

Revenue from operations increased to Rs 36.1502 crore in the September 2026 quarter from Rs 35.4137 crore a year earlier. Cement revenue rose 4.59% year on year to Rs 32.1376 crore, according to the segment note, while the cement segment moved to a loss of Rs 6.1443 crore from profit of Rs 4.2758 crore in the corresponding quarter.

For the six months to September 30, 2026, revenue from operations was Rs 83.337 crore, compared with Rs 76.119 crore in the prior-year period. Cement revenue increased 12.55% to Rs 73.0501 crore, but the segment recorded a Rs 7.2508 crore loss versus a Rs 5.2532 crore profit a year earlier. Solar Energy reported half-year revenue of Rs 6.323 crore and segment profit of Rs 1.018 crore, while Petrol and Diesel reported revenue of Rs 3.5639 crore and segment profit of Rs 0.0531 crore.

Shri Keshav also reported that bank term loans reduced by Rs 4.5886 crore during the September 2026 quarter, from Rs 161.3481 crore at June 30, 2026 to Rs 156.7595 crore at September 30, 2026. Net cash outflow from financing activities was Rs 12.1292 crore for the six months ended September 2026, compared with Rs 1.7225 crore in the prior-year period, including interest paid of Rs 11.2482 crore.

Conclusion

The qualified conclusion places an unresolved accounting uncertainty over Rs 8.5963 crore of GST-related payments, interest and penalties held in Shri Keshav’s other current assets. The auditor did not identify a confirmed misstatement or quantify an adjustment, but could not assess the financial-results impact before completion of the DGGl investigation and issuance of an order. The issue accompanies a half-year loss before tax of Rs 11.9879 crore despite revenue from operations rising to Rs 83.337 crore.

The next disclosed development to watch is a DGGl order or other completion of the investigation, which had not occurred as of September 30, 2026. Future filings can show whether Shri Keshav continues to carry the Rs 8.5963 crore in other current assets and whether it discloses an accounting outcome after an order. They can also show whether the Rs 4.5886 crore quarterly reduction in bank term loans continues.