Mcleod Russel India Limited: Q3 FY26 Unaudited Results Approved, Auditors Raise Significant Concerns
Mcleod Russel India Limited approved Q3 FY26 unaudited results on Feb 13, 2026. Auditors raised serious concerns over ICD recoverability (₹2,86,050 lakhs), non-recognition of interest, and going concern issues. The company's financial health is under stress, awaiting a debt restructuring plan approval.
The auditors' strong reservations about the financial statements and the company's going concern status, coupled with the large sum of unrecoverable ICDs, indicate a high impact on the company's financial standing and investor confidence.
The auditors' report raises substantial concerns about the company's financial health, including the recoverability of significant Inter-Corporate Deposits and the ability to continue as a going concern, indicating a negative outlook.
Mcleod Russel India Limited announced the outcome of its Board Meeting held on February 13, 2026. The Board approved the Unaudited Financial Results for the quarter and nine months ended December 31, 2025, on both standalone and consolidated bases. These results are subject to a limited review by the company's statutory auditors, M/s. Lodha & Co. LLP.
The Board meeting commenced at 2:30 PM and concluded at 4:50 PM. The detailed financial results, along with the limited review reports, are enclosed and also available on the company's website.
However, the Independent Auditors' Review Report highlights significant concerns regarding the financial statements. The auditors noted several issues including recoverability of Inter-Corporate Deposits (ICDs) aggregating to ₹2,86,050 lakhs given to promoter group and other entities, non-recognition of interest on loans and ICDs, fair value assessment of Property, Plant, and Equipment, Capital Work in Progress and Investments, and lease rent for office premises. They also pointed out outstanding statutory liabilities and the impact of an Arbitral Tribunal award concerning borrowings by promoter group entities. Furthermore, the auditors expressed that the financial results have not been prepared fairly in all material respects due to these significant matters. A major concern is the company's ability to continue as a going concern, as current liabilities have exceeded current assets, and operational losses have significantly affected net worth. The company is awaiting the acceptance of its debt restructuring resolution plan by lenders, including NARCL and J.C. Flowers Asset Reconstruction Company Private Limited.
The auditors concluded that because of the significance of the matters stated, particularly concerning the recoverability of ICDs, the financial statements are not prepared fairly in all material respects and have not disclosed the required information as per SEBI LODR, 2015. Their conclusion on the financial results is not modified concerning the going concern assumption and managerial remuneration held in trust.
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