GVK Power & Infrastructure reported a net loss of Rs 0.55 crore for the June quarter. Auditors issued a disclaimer of conclusion, citing significant uncertainties due to accumulated losses and ongoing investigations. The company is under Corporate Insolvency Resolution Process (CIRP) and is re-initiating asset-wise sale.
GVK Power & Infrastructure Auditors Issue Disclaimer Amid CIRP
Consolidated Net Loss: Rs (0.55) crore Consolidated Total Income: Rs 1.69 crore Reader Takeaway: Auditors disclaim opinion; path forward uncertain amid CIRP re-initiation. ## What just happened GVK Power & Infrastructure Ltd has reported its financial results for the quarter ended June 30, 2026. The company posted a consolidated total income of Rs 1.69 crore and a net loss of Rs 0.55 crore. Significantly, the statutory auditors, T R Chadha & Co LLP, issued a 'Disclaimer of Conclusion' on both standalone and consolidated financial results. This disclaimer was due to significant uncertainties arising from accumulated losses, loan repayment defaults, invocation of guarantees, and ongoing legal and regulatory investigations, making it impossible for the auditors to form an opinion. ## Why this matters The disclaimer of conclusion by auditors raises serious concerns about the company's financial health and transparency. It indicates that the auditors could not verify the accuracy or completeness of the financial statements due to pervasive uncertainties. For investors, this means a lack of reliable financial information to assess the company's true position. The ongoing Corporate Insolvency Resolution Process (CIRP) and the Committee of Creditors' (CoC) decision to re-initiate the process through an asset-wise sale further add to the uncertainty. ## The backstory GVK Power & Infrastructure was admitted into CIRP on July 15, 2024. The company has been facing numerous challenges, including significant accumulated losses, defaults on loan repayments, and the invocation of guarantees. Furthermore, it is subject to multiple investigations by the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) for alleged financial irregularities, including misuse of funds and Prevention of Money Laundering Act (PMLA) violations. ## What changes now The CoC has decided to re-initiate the CIRP process via an asset-wise sale approach after rejecting two previous resolution plans. Assets and liabilities of GVK Energy Limited (GVKEL) and its subsidiaries were deconsolidated from May 06, 2025, due to the loss of control. These developments mean the company's future structure and operations will be determined by the outcome of this new sale process under the Insolvency and Bankruptcy Code (IBC) regulations. ## Risks to watch Key risks include the company's going concern ability, which the auditors have cast doubt upon. Ongoing investigations by the ED and CBI pose significant regulatory risks, with potential material financial impacts. The recoverability of assets, including investments in GVK Perambalur SEZ and GVK Coal Developers, remains uncertain due to ongoing litigation and external claims. ## Peer comparison As GVK Power & Infrastructure is under CIRP, direct financial comparison with operational peers is not meaningful. Companies undergoing insolvency proceedings typically have vastly different financial profiles and operational statuses compared to listed entities not under such stress.
