SVC Industries Limited’s latest unaudited financial results for the quarter and half-year ended September 30, 2026, have received a qualified conclusion from auditors B.M. Chaturvedi & Co. The auditor could not verify a ₹900 Lakhs unsecured loan/inter-corporate deposit due to a lack of supporting documentation. This raises concerns about the nature, accounting treatment, and classification of this significant amount.
Auditor Flags Unverified Loan in SVC Industries Results
SVC Industries Limited has released its unaudited financial results for the quarter and half-year ended September 30, 2026. However, the accompanying review report from B.M. Chaturvedi & Co., Chartered Accountants, includes a ‘Basis for Qualified Conclusion’ due to an unverified material item.
Unsecured Loan of ₹900 Lakhs Lacks Verification
According to Note No. 4 to the Statement, SVC Industries has disclosed an amount of ₹900 Lakhs under the head “unsecured loan / Inter-Corporate Deposit.” The auditors stated they were not provided with supporting documents to evidence the nature and terms of this sum. Consequently, B.M. Chaturvedi & Co. was unable to verify its nature, accounting treatment, and classification, leading to a qualified conclusion on the overall financial statement.
Qualified Conclusion Issued
In their conclusion, the auditors noted that based on their review, and except for the potential effects of the unverified loan, nothing has come to their attention that would suggest the accompanying Statement has not disclosed required information or contains material misstatements. However, the inability to verify this significant loan amount casts a shadow on the completeness and accuracy of the financial reporting for the period.
Financial Performance Highlights
The Un-Audited Statement of Financial Results shows that for the half-year ended September 30, 2026, SVC Industries reported a Loss Before Tax of (₹159.31) Lakhs, compared to a Loss Before Tax of (₹124.22) Lakhs for the corresponding period in the previous year. The Total Comprehensive Income for the half-year was also a loss of (₹159.31) Lakhs.
Statement of Assets and Liabilities
As at September 30, 2026, the total assets of SVC Industries stood at ₹44,159.26 Lakhs, with total equity and liabilities at the same amount. The company’s Equity Share Capital remained constant at ₹16,186.37 Lakhs, while ‘Other Equity’ was ₹10,200.84 Lakhs. Non-current liabilities, primarily borrowings, amounted to ₹17,671.88 Lakhs.
Source: BSE
