Silver Pearl auditor flags Rs 80 lakh advances lacking documents

Silver Pearl Hospitality & Luxury Spaces Limited gave Rs 80 lakh of non-interest-bearing advances in the half year ended 30 September 2026, but its reviewer said written agreements, Board approvals and particulars of the underlying transactions were not made available. The Board also had not confirmed compliance with Sections 179(3) and 186 of the Companies Act, 2013.

What did the auditor flag at Silver Pearl?

Silver Pearl gave Rs 75 lakh to Beaumont Tradecom Private Limited during August and September 2026 and Rs 5 lakh to Bothra Amit HUF on 29 June 2026. Management represented that the advances were for business purposes, but the limited-review report says no written agreement, Board of Directors approval or particulars of the underlying transaction were made available to the reviewer.

The reviewer also said no interest was charged on either advance and that the Board had not confirmed compliance with Sections 179(3) and 186 of the Companies Act in respect of them. The report does not state that either advance was improper, nor does it identify a material misstatement arising from the matter.

The disclosure appeared under “Other Matters” in the Independent Auditor’s Limited Review Report dated 14 November 2026. Choudhary Choudhary & Co. performed the review under Standard on Review Engagement 2410, which the report says provides moderate assurance and is substantially less extensive than an audit.

Which Silver Pearl advances were unpaid at 30 September 2026?

Rs 67 lakh of the Rs 80 lakh advanced remained unpaid at 30 September 2026: Rs 62 lakh from Beaumont Tradecom and Rs 5 lakh from Bothra Amit HUF. Beaumont had received Rs 75 lakh during August and September 2026 and repaid Rs 13 lakh before the half-year reporting date.

The reviewer said Beaumont repaid its remaining Rs 62 lakh balance on 12 October 2026 and that it verified the receipt through the bank statement. This repayment occurred after 30 September 2026 and does not change the reviewer’s statement that supporting agreements, approvals and transaction particulars had not been made available.

The Rs 5 lakh Bothra Amit HUF advance remained outstanding at 30 September 2026. The filing does not disclose a subsequent repayment, the repayment terms, the nature of the underlying business transaction or the counterparty’s relationship with Silver Pearl.

How did the advances compare with Silver Pearl’s financial position?

Silver Pearl reported short-term loans and advances of Rs 5.0425 crore at 30 September 2026, compared with Rs 4.6233 crore at 31 March 2026. That is an increase of Rs 41.92 lakh, while the reviewer’s disclosure covers Rs 80 lakh of advances given during the half year rather than a reconciliation to the closing balance-sheet category.

The cash-flow statement recorded a Rs 49.76 lakh increase in loans and advances as a working-capital movement for the half year ended 30 September 2026. Net cash used in operating activities was Rs 45.76 lakh, compared with Rs 1.0394 crore used in the year ended 31 March 2026.

Cash and cash equivalents were Rs 65,000 on the 30 September 2026 balance sheet, down from Rs 6.56 lakh at 31 March 2026. Total assets rose to Rs 13.9751 crore from Rs 13.688 crore, while total equity declined to Rs 13.5017 crore from Rs 13.5354 crore.

What were Silver Pearl’s September-half results and review conclusion?

Silver Pearl reported a net loss of Rs 3.37 lakh for the half year ended 30 September 2026, compared with a profit of Rs 2.54 lakh in the preceding half year ended 31 March 2026 and a profit of Rs 9.94 lakh in the corresponding half year ended 30 September 2025. Total income increased to Rs 75.93 lakh from Rs 72.59 lakh in the immediately preceding half year, while total expenses rose to Rs 80.91 lakh from Rs 68.04 lakh.

Revenue from operations was Rs 36.09 lakh, against Rs 2.64 lakh in the preceding half year and Rs 52.11 lakh a year earlier. Other income was Rs 39.84 lakh, below Rs 69.95 lakh in the preceding half year but above Rs 10.10 lakh in the corresponding 2025 period; the company reports one operating segment, hotel and restaurant business.

The reviewer concluded that nothing had come to its attention causing it to believe the statement had not disclosed information required by Regulation 33 of the Securities and Exchange Board of India Listing Obligations and Disclosure Requirements Regulations, 2015, or that it contained a material misstatement. It explicitly said its conclusion was not modified in respect of the advances matter.

The results were reviewed and recommended by the Audit Committee and taken on record by the Board on 14 November 2026. The filing describes the half-year figures for 30 September 2026 as unaudited, while the 31 March 2026 year-end figures were audited.

Conclusion

Silver Pearl’s limited-review report identifies a governance and documentation issue around Rs 80 lakh of interest-free advances given in the September 2026 half year. Although Rs 62 lakh due from Beaumont Tradecom was repaid on 12 October 2026, the reviewer said it had not received agreements, Board approvals or transaction particulars for either advance, and Board confirmation of the cited Companies Act compliance was absent.

The next financial disclosure should show whether Silver Pearl provides the missing Board confirmation and documentary details, and whether the Rs 5 lakh Bothra Amit HUF advance has been recovered or remains outstanding. Changes in the Rs 5.0425 crore short-term loans and advances balance will also provide context for subsequent advances and recoveries.