Shristi Infrastructure Development Corporation Limited has announced its unaudited financial results for the quarter ended June 30, 2026. The Board of Directors has approved the standalone and consolidated results. The independent auditor’s report includes a qualified conclusion, highlighting specific areas of concern regarding the non-provision of interest expense and the realisability of investments in subsidiaries. The company has also noted material uncertainties related to its going concern assumption.
Unaudited Financial Results for Q1 FY27 Announced
Shristi Infrastructure Development Corporation Limited has disclosed its unaudited standalone and consolidated financial results for the quarter ended June 30, 2026. The results were approved by the Board of Directors during a meeting held on August 12, 2026.
Auditor’s Qualified Conclusion
The independent auditor’s review report, issued by R Kothari & Co LLP, highlights a qualified conclusion. Key points of qualification include:
- Non-provision and default of interest expense amounting to Rs. 641.30 lakhs on borrowings from Srei Equipment Finance Limited, which is not in accordance with Indian Accounting Standards. This has resulted in an understatement of finance costs and consequential impact on other financial figures.
- Uncertainty regarding realisability of investments in subsidiaries, Sarga Udaipur Hotels & Resorts Private Limited and Shristi Urban Infrastructure Development Limited, due to their ongoing Corporate Insolvency Resolution Process (CIRP) and other legal proceedings. The auditors are unable to comment on the extent of realisability of these investments.
Going Concern Uncertainty
The report also draws attention to a material uncertainty related to going concern. The company has incurred losses for the quarter and more than three consecutive years, with its net worth being fully eroded as of June 30, 2026. This indicates a significant doubt on the company’s ability to continue as a going concern, which is critically dependent on management’s view and projected future cash flows.
Emphasis of Matters
Further emphasis is placed on several matters, including:
- The ongoing legal dispute and mediation process concerning Sarga Hotel Private Limited.
- An arbitration award related to a dispute with Rishima SA Investments LLC, with the company not considering a provision based on legal opinion.
- Balances of trade receivables, trade payables, and other receivables/payables being subject to confirmation and reconciliation, which may have unascertained consequential impacts.
Consolidated Financials – Other Matters
For the consolidated financial results, the auditors did not review the financial results of five subsidiaries and one joint venture. Their conclusions on these specific elements are based solely on unaudited financial results provided by the management. The consolidated results also do not include the financial results of Sarga Udaipur Hotels & Resorts Pvt. Ltd., which is under CIRP, as the latest audited financial statements are not available.
Source: BSE
