Amit International Ltd Presents Statement on Impact of Audit Qualifications for FY 2025-2026

Amit International Ltd Presents Statement on Impact of Audit Qualifications for FY 2025-2026​

Amit International Ltd has released its Statement on the Impact of Audit Qualifications concerning the financial year ended March 31, 2026. The statement, which details various audit qualifications related to the company's financials, was issued in relation to the audit report provided by Vinod SS Mehta & Co.

The document provides management’s views and explanations regarding each audit qualification, along with the quantified or qualitative impact on the financial statements of the company.

Financial Overview (FY ended March 31, 2026)​

Management has reviewed the key financial metrics for the period as detailed in the statement:

Key Audit Qualifications and Findings​

The statement highlights multiple qualifications raised during the audit process, including:

Non-provision for Doubtful Advances: One qualification relates to a non-provision for doubtful advances amounting to Rs. 232.26 Lakhs granted to Topson Iron Ore India Private Limited. The auditor noted that in the absence of sufficient appropriate audit evidence regarding the recoverability of this advance, the consequential impact on the financial statements could not be determined.

Failure to Obtain RBI Registration: A qualification addresses the company’s status regarding required registration under Section 45-IA of the Reserve Bank of India Act, 1934. The company has not obtained such registration, which management represented was due to no new project being undertaken during the year. The potential impact of this non-compliance remains undetermined.

Retirement Benefits Accounting: Another qualification pertains to the company’s failure to recognize or provide for employee retirement benefits in accordance with Indian Accounting Standards (Ind AS) 19 Employee Benefits. These obligations were accounted for on a cash basis, meaning they are recognized as and when paid, as the company lacked an actuarial valuation report. Consequently, the liability could not be quantified regarding its impact on the financial statements.

Investment Valuation: The audit qualification regarding certain investments mentions that the company measured these assets at fair value in accordance with Indian Accounting Standards (Ind AS) 109 based on information available as of March 31, 2021, due to a lack of updated financial information from the investee entities.

Loans and Advances Valuation: A qualification states that the company did not measure certain loans and advances at fair value upon initial recognition, instead recognizing them at the transaction amount without giving effect to discounting requirements prescribed under Ind AS 109. The auditor noted this could have resulted in a misstatement of the carrying amount of financial assets and related finance income.

Uncharged Interest Income: Finally, one qualification detailed that interest was not charged on certain granted loans as mandated by Section 186 of the Companies Act, 2013. This failure to charge interest resulted in an unrecognised interest income amounting to Rs. 24.91 Lakhs, leading to an understatement of income and overstatement of loss by the same amount.

Stock Price Movement​

Amit International Ltd shares settled at ₹2.57 on Monday after edging higher by 4.05% in post-market trading. The stock moved within an intraday range established between a low of ₹2.35 and a high of ₹2.58.