Shivom Investment Posts Profit with Auditor Disclaimer, Eyes Manufacturing Shift

Shivom Investment & Consultancy Ltd has reported a net profit of ₹0.9455 crore for the quarter ended March 31, 2026, and ₹2.8848 crore for the full year. However, these results come with a significant 'Disclaimer of Opinion' from the statutory auditor, S Parth & Co.

Reader Takeaway: Profit reported despite auditor's lack of evidence on assets and liabilities; future hinges on manufacturing plans and trading suspension.

What just happened

The company announced its audited standalone financial results for the quarter and year ended March 31, 2026. For the quarter, revenue from operations stood at ₹0.7633 crore, with total income at ₹0.9701 crore, leading to a net profit of ₹0.9455 crore. For the full year, revenue was ₹3.2898 crore, total income ₹3.4966 crore, and net profit ₹2.8848 crore.

Why this matters

Despite reporting profits, the auditor's 'Disclaimer of Opinion' is a major red flag. It means the auditor could not verify the completeness, valuation, or classification of the company's assets and liabilities. This stems from the current management's inability to access historical records. The company has also ceased its NBFC business and is awaiting the revocation of its trading suspension.

The backstory

Shivom Investment was under the Insolvency and Bankruptcy Code (IBC) process. Following the NCLT's approval of a Resolution Plan on August 18, 2025, the company has exited IBC. This plan involved restructuring equity and settling debts. The company has surrendered its NBFC license.

What changes now

The company is transitioning away from its NBFC activities. It plans to enter the manufacturing sector, specifically in metal and metal-based products. However, this new business had not commenced as of March 31, 2026. The debt settlement involved ₹21.46 crore in Compulsorily Convertible Debentures (CCDs).

Risks to watch

The primary risk is the auditor's disclaimer, indicating potential unreliability in the reported financials. Management is still working to identify and verify assets and liabilities, meaning future results could see significant adjustments. The trading suspension also poses a liquidity risk for shareholders.

Peer comparison

Data on direct peers in a similar post-IBC, NBFC-to-manufacturing transition phase with auditor disclaimers and trading suspensions is limited. Companies exiting IBC often face significant operational and financial scrutiny.

Context metrics (time-bound)

As of March 31, 2026:

• Total Assets: ₹38.2518 crore
• Total Equity: ₹20.7288 crore
• Non-current Borrowings: ₹17.50 crore

What to track next

Investors should closely monitor the company's progress in establishing its manufacturing operations and the resolution of the trading suspension. The ongoing process of asset and liability verification and its impact on future financial statements will be crucial.