SKP Bearing auditor cannot assess subsidiary adjustments

SKP Bearing Industries Limited’s auditor could not determine whether adjustments were needed to its consolidated results for the quarter ended September 30, 2026 because one material wholly owned subsidiary’s management-certified interim accounts were not limited-reviewed. The subsidiary reported Rs 6.1902 crore of total revenue and a Rs 4.0521 crore net loss after tax.

What did SKP Bearing’s auditor flag in September 2026?

SKP Bearing’s auditor flagged the absence of a limited review of interim financial information from one wholly owned subsidiary included in the consolidated results for the quarter ended September 30, 2026. Jain P. C. and Associates said the subsidiary’s figures had not been reviewed by its auditors and were instead approved and furnished by management.

The auditor stated that the unreviewed interim results were material to the group. It therefore could not determine whether a limited review by the subsidiary’s auditors might have identified adjustments needed to those financial results before their inclusion in SKP Bearing’s consolidated statement.

The report does not identify the subsidiary by name, state its business activity, or quantify any possible adjustment. The limitation was disclosed in the limited-review report dated November 4, 2026, which covered SKP Bearing and its subsidiaries together for the September 2026 quarter.

The matter concerns evidence supporting the subsidiary component of the consolidated financial results, rather than a finding that an adjustment has occurred. The auditor’s wording says possible effects could not be determined because the subsidiary reported Rs 6.1902 crore of revenue and a Rs 4.0521 crore loss using management-certified, unaudited interim information.

Which subsidiary figures led to SKP Bearing’s review limitation?

The wholly owned subsidiary reported total revenue of Rs 6.1902 crore for the quarter ended September 30, 2026, according to the auditor’s report. It also reported a total net loss after tax of Rs 4.0521 crore for the same quarter, figures that the auditor described as material to the group.

The disclosed loss equalled roughly 65% of the subsidiary’s reported revenue for the quarter, based on the two figures in the review report. That calculation only describes the relationship between management-certified revenue and loss; it does not establish that either number is incorrect or would change after a limited review.

The filing gives no prior-quarter or prior-year figures for the subsidiary’s revenue or loss. It therefore does not allow a comparison of whether the Rs 6.1902 crore revenue or Rs 4.0521 crore loss improved or worsened over another period.

The source also does not disclose the subsidiary’s assets, liabilities, cash flows or the accounting areas in which adjustments could potentially arise. Its specific disclosure is that the subsidiary’s unaudited information was included in the September 30, 2026 consolidated statement without a separate auditor’s limited-review conclusion.

What did the auditor conclude on SKP Bearing’s consolidated results?

SKP Bearing received a limited-review conclusion for the September 30, 2026 consolidated results, with an exception for the possible effects of the unreviewed subsidiary information. Subject to that matter, the auditor said nothing had come to its attention indicating that the statement did not make required disclosures or contained a material misstatement.

This was not an audit opinion. The report says a limited review consists primarily of inquiries of personnel responsible for finance and accounting matters, analytical procedures and other review procedures, and is substantially narrower than an audit performed under Standards on Auditing.

Jain P. C. and Associates conducted the review under Standard on Review Engagements 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity, issued by the Institute of Chartered Accountants of India. It also said it performed applicable procedures under Regulation 33(8) of the Securities and Exchange Board of India, or SEBI, Listing Obligations and Disclosure Requirements Regulations, 2015.

The report says the consolidated statement was prepared using the recognition and measurement principles of Indian Accounting Standard 34, Interim Financial Reporting, as cited by the auditor. SKP Bearing’s board approved the statement, while the auditor’s responsibility was to express a conclusion based on its review of the September 2026 quarter.

The possible-effects language does not say an error or a material misstatement was found. It says the auditor cannot determine whether adjustments might have been necessary if the subsidiary’s interim accounts, including its Rs 4.0521 crore loss, had been subjected to the missing limited review.

Why does SKP Bearing’s subsidiary review matter to shareholders?

SKP Bearing’s consolidated statement combines the parent’s financial information with that of its subsidiaries, making the support for a material subsidiary relevant to the group-level review conclusion. For September 30, 2026, the auditor relied solely on management-certified information for the subsidiary that reported Rs 6.1902 crore revenue and a Rs 4.0521 crore after-tax loss.

The disclosure does not support a conclusion that SKP Bearing’s consolidated revenue, profit, assets, liabilities or cash flows are overstated or understated by a specified amount. As of the November 4, 2026 report, the auditor had not identified or quantified an adjustment; it had identified an inability to determine possible adjustments.

The report was signed by Karan R. Ranka, partner at Jain P. C. and Associates, in Surendranagar on November 4, 2026. The firm stated that its conclusion relating to the subsidiary’s amounts and disclosures rested solely on management-certified unaudited interim results.

SKP Bearing’s filing also says that, as an entity listed on the National Stock Exchange SME Platform, it is required to submit half-yearly financial results. It voluntarily prepares and publishes quarterly results, including the quarter ended September 30, 2026 that is subject to this subsidiary-related review limitation.

The company’s cash-flow statement reported cash and cash equivalents of Rs 2.11 lakh at September 30, 2026, compared with Rs 33.77 lakh at March 31, 2026. That statement is part of the consolidated financial information, but the auditor’s stated limitation is specifically tied to the material wholly owned subsidiary’s unreviewed interim results.

Conclusion

The November 4, 2026 limited-review report leaves SKP Bearing’s September 30, 2026 consolidated results subject to a defined possible-effects limitation. One material wholly owned subsidiary contributed management-certified interim figures of Rs 6.1902 crore in revenue and a Rs 4.0521 crore net loss after tax, without a limited review by that subsidiary’s auditors.

The next financial disclosure should show whether SKP Bearing obtains a limited-review conclusion for the subsidiary information or reports any resulting adjustment to consolidated results. The current filing identifies neither the subsidiary nor an adjustment amount, while confirming that quarterly results are voluntarily published despite the SME Platform’s half-yearly reporting requirement.