Subam Papers auditor relies on management-certified results

Subam Papers Limited’s auditor relied solely on management-certified financial information for three subsidiaries with Rs 61.5988 crore of assets at September 30, 2026, while reporting an unmodified limited-review conclusion on the consolidated results. The entities recorded Rs 22.7061 crore of half-year revenue and a Rs 53.99 lakh net loss.

What did Subam Papers’ auditor rely on?

Subam Papers’ auditor relied on financial information certified by management for three subsidiaries because their financial information had not been reviewed by their auditors. CNGSN & Associates LLP disclosed the matter in its November 12, 2026 review report on Subam Papers’ unaudited consolidated results for the quarter and half year ended September 30, 2026.

The engagement was a limited review under Standard on Review Engagements 2410, or SRE 2410, rather than an audit. The auditor said a review involves inquiries and analytical procedures intended to obtain moderate assurance, and is substantially narrower in scope than an audit conducted under auditing standards.

The auditor’s reliance applies to the amounts and disclosures in the consolidated statement associated with the three entities. The filing does not identify the three subsidiaries individually, although the auditor lists five subsidiaries in Subam Papers’ consolidated group as at September 30, 2026.

Which subsidiary figures were management-certified?

The three subsidiaries had total assets of Rs 61.5988 crore at September 30, 2026, according to the auditor’s report. They reported total revenue of Rs 15.6467 crore for the quarter ended September 30, 2026 and Rs 22.7061 crore for the period from April 1, 2026 to September 30, 2026.

Their combined net loss after tax was Rs 19.99 lakh for the September 2026 quarter and Rs 53.99 lakh for the six-month period. The half-year revenue was Rs 7.0594 crore higher than the September-quarter revenue because the half-year period also includes the quarter ended June 30, 2026; the two periods are therefore not like-for-like comparisons.

The Rs 61.5988 crore asset figure is a balance-sheet measure at September 30, 2026, while the revenue and loss figures cover reporting periods. The announcement does not provide the three entities’ asset total at March 31, 2026, so their asset movement over the first half of fiscal 2026-27 cannot be established from this filing.

Which entities are in Subam Papers’ consolidated group?

Subam Papers’ consolidated group includes the holding company and five named subsidiaries: Subam Paper and Boards Private Limited, Subam Agro Ventures Private Limited, Mercury Pack & Paper Products LLP, Rajapalayam Success Packaging's LLP and Nellai Subam Packaging LLP. The auditor identifies the first two as wholly owned subsidiaries and the remaining three as subsidiary entities.

The November 12, 2026 report does not say which three of the five subsidiaries supplied management-certified financial information. As a result, the filing does not allocate the Rs 61.5988 crore of assets, Rs 22.7061 crore of half-year revenue or Rs 53.99 lakh of half-year loss among the paper, agro and packaging businesses.

Subam Papers submitted its consolidated results under Regulation 33 of the Securities and Exchange Board of India, or SEBI, Listing Obligations and Disclosure Requirements Regulations, 2015. Its Audit Committee and board approved the results on November 12, 2026, and the auditor said it also performed procedures under the applicable SEBI Regulation 33(8) circular.

Did the auditor modify its conclusion on Subam Papers’ results?

No, the auditor did not modify its conclusion because of the management-certified information from the three subsidiaries. CNGSN & Associates LLP said that, based on information and explanations from management, the financial information was not material to the group and its conclusion was not modified in respect of the matter.

The auditor concluded that nothing had come to its attention during the limited review to indicate that the consolidated statement did not make the disclosures required by Regulation 33 or contained a material misstatement. This is a limited-review conclusion for the period from April 1, 2026 to September 30, 2026, not an audit opinion.

Subam Papers’ consolidated-results notes also state that the September 30, 2026 quarterly figures are balancing figures between the unaudited half-year results and the June 30, 2026 quarterly results. Both the half-year and June 2026 consolidated figures were subjected to limited review by the holding company’s statutory auditors.

What limits comparison with Subam Papers’ earlier results?

Comparison with the September 2025 consolidated quarter is limited because Subam Papers says those figures were derived by management from half-year data. The company began quarterly reviews only with the quarter ended December 31, 2025, and the September 30, 2025 quarterly figures were not subjected to limited review or audit.

The filing also says previous comparative consolidated figures were prepared under Accounting Standards, or AS, whereas the current results use Indian Accounting Standards, or Ind AS. Subam Papers presented the older figures as previously reported, without adjustments or restatement to align them with Ind AS.

A separate unresolved matter in the September 2026 consolidated results is an inventory loss of Rs 29.5759 crore during the quarter ended September 30, 2026. The affected inventory was insured with New India Assurance Company Limited, but the assessment of the claim and eligible compensation remained ongoing at the reporting date.

Conclusion

The disclosure means that part of Subam Papers’ consolidated statement, relating to three unnamed subsidiaries with Rs 61.5988 crore of assets, depended on management-certified rather than auditor-reviewed financial information. Those entities reported Rs 22.7061 crore of revenue and a Rs 53.99 lakh net loss for the six months ended September 30, 2026, but the group auditor left its limited-review conclusion unmodified.

The next disclosed matter to watch is the assessment and settlement of the insurance claim for the Rs 29.5759 crore consolidated inventory loss. Subam Papers said it was following up with New India Assurance Company Limited for an early assessment and would recognise compensation, if any, only when the applicable accounting recognition criteria are satisfied.