Shree Krishna Infrastructure's FY26 audit report contains a 'Disclaimer of Opinion' due to missing financial records. The firm struggled to produce bank statements and vouchers following a change in management. While the company reported a net profit of Rs 0.09 crore, the auditor's inability to verify transactions casts significant doubt on these figures. Investors should remain cautious as the company also plans a major increase in authorized share capital to Rs 40 crore and board restructuring.
Auditor Issues Disclaimer of Opinion for Shree Krishna Infrastructure
Revenue fell to Rs 0.65 crore in FY26 from Rs 0.84 crore previously. Net profit was reported at Rs 0.09 crore compared to Rs 0.03 crore in FY25.
Reader Takeaway: The auditor’s refusal to certify financials is a major governance red flag; exercise extreme caution with this stock.
What just happened
The Statutory Auditor for Shree Krishna Infrastructure has issued a 'Disclaimer of Opinion' regarding the company's FY 2025-26 annual accounts. This means the auditor could not confirm the accuracy of the financial statements, citing an inability to access essential records like bank statements and loan agreements following a recent management transition.
Why this matters
A disclaimer is one of the most severe audit outcomes. It suggests that the company’s internal financial controls may be compromised or that vital documentation is missing. Investors cannot rely on the reported profit figures, as the auditor was unable to verify the underlying transactions that led to the Rs 0.09 crore profit.
Corporate Developments
The company is currently undergoing significant changes. It plans to increase its authorized share capital from Rs 12.50 crore to Rs 40 crore. Additionally, the company is seeking to appoint M/s. NKSC & Co. as auditors for a five-year term and is reclassifying Prashant Natwarlal Lakhani from the promoter category to the public category.
Management and Board Changes
The firm saw key leadership departures and additions, including the resignation of former CMD Ravi Kotia in July 2025 and the appointment of Anil Shiv Charan Singh as Executive Director in November 2025.
Risks to watch
The primary risk is the lack of transparency regarding the company’s financial health. Potential regulatory scrutiny or further questions regarding the missing accounting records could significantly impact investor confidence and stock stability.
What to track next
Watch for the upcoming Annual General Meeting (AGM) where management may be pressured to explain the status of the missing financial records and the integrity of the audit process.