Urja Global Limited reviewer cannot assess Rs 46.35 crore assets

Urja Global Limited’s reviewer said in its November 5, 2026 limited-review report that missing records prevented determination of recoverability, carrying values and profit effects for Rs 46.35 crore of mine-project capital work in progress as at September 30, 2026, as well as for the company’s loans and advances.

What did Urja Global Ltd’s reviewer flag?

Urja Global Ltd’s reviewer flagged the absence of documentary evidence for Rs 46.35 crore of mine-project progress classified as capital work in progress at September 30, 2026. The report also said no documentary evidence had been made available for loans and advances granted by Urja Global Ltd as of that date.

The unavailable material included project records, agreement terms and signed balance confirmations for loans and advances. Urja Global Ltd told the reviewer that a Goods and Services Tax, or GST, department raid on July 20, 2021 had resulted in records being taken from its premises. Management said it would seek the documents and confirmations from relevant parties.

The reviewer did not conclude that the Rs 46.35 crore balance or the loans would be unrecoverable. Instead, it said the absence of necessary records meant it could not determine recoverability, the investment carrying value, the consequential effect on profit, or compliance with applicable provisions of the Companies Act, 2013.

Why are the mine-project and loan balances not verifiable?

Urja Global Ltd said the July 20, 2021 GST raid was the reason project papers, contractual terms and signed loan confirmations were unavailable. At the September 30, 2026 review date, the reviewer said documents had not been supplied and that management intended to obtain them from counterparties.

The report separately identified Rs 4.49 crore lent to certain individuals and corporate entities at September 30, 2026. Management said none of those borrowers was a related party and therefore said half-yearly disclosure under Regulation 23(9) of the Securities and Exchange Board of India, or SEBI, Listing Obligations and Disclosure Requirements Regulations was not required. The reviewer recorded that position while noting that no interest had accrued on these loans and advances since inception, including in the second quarter of financial year 2026-27.

A Rs 28.81 crore balance from promoter company Nandanvan Commercial Pvt Ltd also had no interest accrued since inception at September 30, 2026, according to the report. Referring to Sections 185 and 186 of the Companies Act, 2013, which address intercorporate loans and investments, the reviewer said Urja Global Ltd failed to accrue interest on both the promoter-company loan and the Rs 4.49 crore of loans and advances provided by the company.

What do the receivable and GST observations show?

Urja Global Ltd had total receivables of Rs 30.76 crore at September 30, 2026, including Rs 20.34 crore outstanding for more than 180 days. The balance aged beyond 180 days was therefore larger than the remaining Rs 10.42 crore of receivables, and the reviewer suggested considering provisions for trade-receivable write-offs.

The report said no ledger confirmations had been received for trade receivables or trade payables. It also described a financial year 2025-26 set-off under a Debtors Control ledger account of Rs 36.46 crore of debtors against Rs 35.99 crore of loans and liabilities. The debtor balance exceeded the loans-and-liabilities amount by Rs 46.38 lakh.

The reviewer said Indian Accounting Standard 32 generally prohibits offsetting or netting receivables and payables, while Schedule III of the Companies Act requires proper classification and disclosure. Management said the adjustments related to the same parties, but the required ledger confirmations were still awaited at the September 30, 2026 review date.

Urja Global Ltd had also not reversed GST input tax credit of Rs 16.73 lakh at September 30, 2026, the report said. The stated reason was non-payment to sundry creditors within the stipulated period under the second proviso to Section 16(2) of the Central Goods and Services Tax Act, 2017; the reviewer said non-reversal would result in an incorrect amount of GST credit being availed against GST liability.

What regulatory and tax matters remain unresolved?

The report referred to a SEBI show-cause notice dated March 19, 2024 concerning certain disclosure non-compliances under Regulations 30 and 34. It also said SEBI had imposed a Rs 90 lakh penalty on Urja Global Ltd and 15 related entities, including directors, officers, key managerial personnel and promoters, over disclosure-norm matters and alleged non-disclosure of certain memoranda, agreements or joint-venture agreements. Urja Global Ltd has filed an appeal.

The reviewer also noted various income-tax portal notices involving reassessment, recovery proceedings and adjustments under Section 143(1)(a), for which due dates to respond had lapsed without replies being submitted. The portal showed an outstanding tax liability of Rs 6.24 crore for various years, excluding interest levied by the department, as at September 30, 2026.

Among the listed GST proceedings, a December 24, 2025 order involved tax of Rs 44.15 crore and an equal Rs 44.15 crore penalty for financial years 2018-19 to 2020-21. The report said the order concerned alleged short payment of tax, excess or incorrect input-tax-credit availment or utilisation, and late-fee matters. These are disclosed proceedings, rather than amounts the reviewer identified as final liabilities in the limited-review conclusion.

What was the scope of the limited review?

The November 5, 2026 report was a limited review of unaudited consolidated results for the quarter ended September 30, 2026, performed under Standard on Review Engagements 2410. The reviewer said such a review consists mainly of inquiries and analytical procedures and is substantially narrower than an audit, so it did not express an audit opinion.

The consolidated results included three subsidiaries whose interim financial results had not been reviewed by their auditors and were certified by management. Urja Batteries Limited, Urja Digital World Limited and Sahu Minerals & Properties Limited together reported revenue from operations of Rs 1.79 crore and total comprehensive loss of Rs 20.16 lakh for the September 2026 quarter before consolidation adjustments.

Conclusion

The limited review identifies a documentation constraint around Rs 46.35 crore of mine-project capital work in progress and the company’s loans and advances, rather than determining the ultimate recoverability of those balances. That issue appears alongside Rs 20.34 crore of receivables older than 180 days, unaccrued interest on Rs 4.49 crore of loans and advances and Rs 28.81 crore due from Nandanvan Commercial Pvt Ltd, and outstanding ledger confirmations.

The next disclosures to watch are whether Urja Global Ltd obtains project records and counterparty confirmations, as management said it would seek them after the September 30, 2026 review. Investors can also track the company’s appeal against the Rs 90 lakh SEBI penalty, its stated appeal processes for certain GST orders, and future reporting on receivable provisions, GST credit reversals and loan-interest accruals.