Vikas WSP auditors flag unverified September balance sheet

Vikas WSP Limited’s standalone results for the quarter ended September 30, 2026 received a qualified review conclusion because auditors could not determine required adjustments to assets, liabilities, creditor claims and reported losses, including Rs 491.9881 crore of trade and other receivables, while the approved resolution plan was being implemented.

Why did Vikas WSP receive a qualified review conclusion?

Vikas WSP received a qualified conclusion because its auditors could not establish whether the carrying values of assets and liabilities, creditor claims and the reported loss required adjustment at September 30, 2026. A K Chadda & Co conducted a limited review under Standard on Review Engagement 2410, rather than a full audit, of the unaudited standalone quarterly and half-yearly results filed on November 12, 2026.

The auditors said Vikas WSP had not considered any potential impact on the carrying value of tangible assets under Indian Accounting Standard 10, or Ind AS 10, on events after the reporting period. They also said the company had not completed the impairment assessment under Ind AS 36 for property, plant and equipment reported at Rs 462.641 crore on September 30, 2026, compared with Rs 462.8907 crore on March 31, 2026.

The qualification also covered a pending comprehensive review of balances with the Goods and Services Tax authorities, other statutory authorities, trade receivables, advances paid, trade payables, advances received and other short-term liabilities. Auditors said they could not determine whether impairment, liability write-backs or other adjustments would change the loss for the half year ended September 30, 2026.

Which Vikas WSP balances could require adjustment?

Vikas WSP reported Rs 491.9881 crore of trade and other receivables and Rs 306.6687 crore of borrowings at September 30, 2026, but auditors said documentary evidence was not available to verify or confirm certain assets and liabilities. The review also said fair values of financial assets and liabilities had not been determined as required under Ind AS 109, Financial Instruments.

Total assets were reported at Rs 1,377.0399 crore at September 30, 2026, down Rs 5.1463 crore from Rs 1,382.1862 crore at March 31, 2026. Total liabilities declined by Rs 3.3121 crore to Rs 657.9437 crore, while total equity fell by Rs 1.8343 crore to Rs 719.0962 crore; these are filed figures subject to the unresolved verification matters.

Vikas WSP did not produce its fixed-asset register because it was not handed over by past management, according to the auditors. The auditors therefore could not comment on the accuracy of property, plant and equipment, the calculation of current depreciation or the possible resulting impact on the September 2026 financial statements.

The chairman of the monitoring committee told auditors that records had not been handed over completely, prompting an application to the National Company Law Tribunal, or NCLT, under Section 19(2) of the Insolvency and Bankruptcy Code. Management had also said in an email dated February 15, 2022 that a ransomware attack made Tally data, the fixed-asset register and other records before April 1, 2021 unavailable.

How did Vikas WSP’s September loss compare with earlier periods?

Vikas WSP reported a net loss of Rs 153.24 lakh for the quarter ended September 30, 2026, compared with a loss of Rs 30.19 lakh in the June 2026 quarter and Rs 875.69 lakh in the September 2025 quarter. The half-year loss narrowed to Rs 18.343 crore from Rs 17.5344 crore a year earlier, although auditors said the effect of unverified balances on reported losses could not be ascertained.

There was no revenue from operations in the September 2026 quarter or the six months ended September 30, 2026. Quarterly total income of Rs 7.29 lakh consisted of other income, while expenses reached Rs 160.53 lakh, against Rs 34.24 lakh in June 2026 and Rs 880.50 lakh in the corresponding 2025 quarter.

Other expenses rose to Rs 143.66 lakh in the September 2026 quarter from Rs 18.78 lakh in June 2026, while depreciation was Rs 12.49 lakh. In the September 2025 quarter, depreciation was Rs 854 lakh, contributing to total quarterly expenses of Rs 880.50 lakh.

For the six months ended September 30, 2026, total expenses were Rs 19.477 crore, down from Rs 17.6458 crore a year earlier. Paid-up equity share capital was unchanged at Rs 20.444 crore, with a face value of Re 1 per share, while the reported half-year basic loss per share narrowed to Rs 0.09 from Rs 0.86.

What is happening with Vikas WSP’s resolution plan and creditor claims?

Vikas WSP’s resolution plan was approved by the NCLT’s Chandigarh Bench on September 9, 2026 and was still being implemented when the results were issued on November 12, 2026. Arcbolt Space and Foods Private Limited submitted the approved plan, after the company entered the Corporate Insolvency Resolution Process, or CIRP, on February 2, 2022.

The plan’s term ends on its closing date, defined as the completion of specified actions and, in any case, no later than 90 days after the September 9, 2026 approval order. It provides for settlement of creditor claims, funding for working capital and capital expenditure, restructuring of share capital and reconstitution of the board within specified timelines.

During this period, Vikas WSP’s board remains suspended and its powers rest with a monitoring committee. The committee includes a Bank of India representative for financial creditors, Karan Jakhar for Arcbolt Space and Foods Private Limited, and Darshan Singh Anand, the former resolution professional, as chairman.

Financial and operational creditor claims remain under reconciliation with the amounts recorded in Vikas WSP’s books, and no provision or accounting adjustment has been made for excess, short or non-receipt of claims. At September 30, 2026, the company reported Rs 45.9826 crore of trade payables, Rs 69.5755 crore of other financial liabilities and Rs 231.2363 crore of other current liabilities.

Auditors were also unable to comment on possible financial effects from confidential information, including committee-of-creditors meeting minutes and outcomes of certain CIRP procedures. The monitoring committee chairman said such information could not be shared beyond the committee of creditors and the NCLT, restricting evidence available for the review.

Conclusion

Vikas WSP’s reported September 2026 quarterly loss was lower than in the comparable 2025 quarter, while total assets declined modestly to Rs 1,377.0399 crore. However, the qualified review means the stated values of property, plant and equipment, receivables, liabilities and creditor claims may require adjustment once verification, impairment assessment and claim reconciliation are completed.

The next point to watch is implementation of the resolution plan within the term that ends no later than 90 days after the September 9, 2026 NCLT order. The filing says Vikas WSP’s ability to recommence and sustain operations depends on timely implementation, proposed funding, restoration of manufacturing facilities, working-capital support and future cash-flow generation.