Sharika Enterprises Limited has announced its unaudited financial results for the first quarter ended June 30, 2026. The company reported a notable shift to profitability, with a profit after tax of ₹29.86 lakhs for the quarter, a substantial improvement from a loss in the prior year period. However, the independent auditors have issued a qualified opinion, highlighting concerns regarding inventory valuation, trade receivables, and advances to suppliers.
Sharika Enterprises Reports Q1 FY27 Financial Results
Sharika Enterprises Limited has disclosed its unaudited financial results for the quarter and year ended June 30, 2026. The company has transitioned to profitability, reporting a profit after tax of ₹29.86 lakhs for the quarter ended June 30, 2026. This marks a significant improvement compared to the loss of ₹228.72 lakhs recorded in the corresponding quarter of the previous financial year (June 30, 2025).
Auditor’s Qualified Opinion
The independent auditor’s report has highlighted several areas of concern, resulting in a qualified opinion. These include:
- Inventory Valuation: The company identified ₹149.25 lakhs in slow-moving inventories but has not considered any provision for obsolescence, as management believes the net realizable value is higher than the carrying amount. Auditors are unable to comment on the appropriateness of this amount without an assessment of inventory aging and net realizable value.
- Advances to Suppliers: Outstanding advances of ₹210.66 lakhs as at June 30, 2026, include old balances overdue for more than three years with no significant movement. Management has not assessed recoverability or made provisions, leading auditors to be unable to comment on potential adjustments.
- Trade Receivables: Trade receivables totaling ₹4,862.30 lakhs (standalone) and ₹5,273.38 lakhs (consolidated) as at June 30, 2026, include old outstanding balances and balances from parties with whom there have been no recent transactions. The management has not computed Expected Credit Losses (ECL) as per Ind AS 109, preventing auditors from commenting on ECL provisions or the impact on profit.
These issues were also noted in the company’s reports for the quarter and year ended March 31, 2026.
Other Financial Highlights
For the quarter ended June 30, 2026, Revenue from Operations stood at ₹2,219.83 lakhs (standalone) and ₹2,220.07 lakhs (consolidated). Total expenses for the standalone entity were ₹2,202.99 lakhs, leading to a profit before tax of ₹31.88 lakhs. The consolidated total comprehensive income for the period was ₹30.34 lakhs.
Source: BSE
