California Software Company Limited announces Q3 FY26 results with a qualified review.
California Software Company Limited approved its unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025. The independent auditor's report noted significant concerns regarding trade receivables, payables, and fixed asset verification, leading to a qualified conclusion. The company operates in the IT and Software development sector.
The extensive qualifications in the auditor's report, particularly concerning unprovided credit losses on trade receivables, negative debtor turnover, and lack of asset verification, suggest a high risk for investors and stakeholders. These issues could indicate underlying financial distress or material misstatements.
The independent auditor's review report highlighted multiple significant qualifications and concerns regarding the company's financial reporting and internal controls, including issues with trade receivables, payables, and fixed assets. This indicates potential financial instability or lack of transparency.
California Software Company Limited announced the unaudited Standalone and Consolidated Financial Results for the quarter and nine months ended December 31, 2025. The Board of Directors approved these results on February 14, 2026. The meeting commenced at 16:00 Hrs and concluded at 18:30 Hrs. The unaudited financial results, along with the Limited Review Report, are available on the company's website, www.calsofts.com.
The Independent Auditor's Review Report highlighted several significant concerns, including trade receivables amounting to ₹2307.39 Lakhs with no adequate provision for expected credit loss, a negative debtor's turnover ratio, and pending balance confirmations for trade payables (₹67.40 Lakhs). Additionally, age-wise details of current assets and liabilities were not available, and the current tax balance (₹380.02 Lakhs) is subject to reconciliation. The company has also not assessed the fair value or impairment of its investment in a subsidiary (₹311.38 Lakhs), and opening balances differ from the previous year's audited statements without explanation. The Fixed Asset Register was not provided for verification, and reported income has not been reconciled with GSTR-1 outward supplies.
Despite these qualifications, the review report concluded that nothing came to their attention that causes them to believe the accompanying statements contain material misstatements, subject to the aforementioned issues. The company is primarily engaged in IT and Software development, with no separate reportable segments. The financial results have been prepared in accordance with Indian Accounting Standards (Ind AS) and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
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