Reliance Infrastructure Limited’s board has approved the unaudited financial results for Q3 2026. However, the statutory auditors, M/s Chaturvedi & Shah LLP, expressed concerns regarding economic rights of certain investments and ongoing proceedings, leading to a qualified review report. They also resigned and filed form ADT-4. Despite auditor reservations, the company highlights a going concern basis.
Financial Results Overview
The Board of Directors of Reliance Infrastructure Limited approved the unaudited consolidated and standalone financial results for the quarter and nine months ended December 31, 2025. The results were reviewed in a board meeting on January 31, 2026. While the board approved the results, the statutory auditors raised key issues.
Auditor’s Qualified Opinion
M/s Chaturvedi & Shah LLP, the statutory auditors, issued a qualified review report. Their concerns primarily relate to two key areas:
- Economic Rights: The auditors were unable to determine the overall recovery of the Economic Rights of shareholding in Odisha Discoms and certain unlisted entities, which amounted to ₹4,748.11 Crore as of December 31, 2025.
- Ongoing Proceedings: The auditors also highlighted ongoing proceedings by the Enforcement Directorate (ED), a Show Cause Notice (SCN) from SEBI, and a notice from the Serious Fraud Investigation Office (SFIO). These proceedings involve allegations of suspected fraud related to the utilization of funds.
Auditor Resignation and Form ADT-4
The auditors also informed the board of their resignation after completion of the statutory audit for the financial year ending March 31, 2026, filing form ADT-4. The Reliance Infrastructure Audit Committee has contested this move, stating the auditor’s reasons for resignation were incorrect and legally untenable. The Audit Committee noted the auditor has been acting for more than five years, with three different signing partners during which period the auditors never raised any issues as regards fraud and has also offered to continue till completion of the statutory audit.
Reliance Infrastructure Response
Reliance Infrastructure is taking steps related to these issues and has highlighted that despite the uncertainties raised by the auditors, the financial results have been prepared on a going concern basis.
Key Subsidiaries’ Performance:
The report includes the results of numerous subsidiaries including :
- Reliance Power Transmission Limited
- Reliance Airport Developers Limited
- BSES Kerala Power Limited
- Mumbai Metro One Private Limited
- Reliance Defence Limited
Source: BSE
