Arunaya Organics Reports Half-Year Results; Audit Highlights Forex and Fund Utilization Observations

Arunaya Organics Reports Half-Year Results; Audit Highlights Forex and Fund Utilization Observations​

Arunaya Organics Limited announced the outcome of its Board Meeting held on May 30, 2026, confirming the approval and release of audited financial results for the half and year ended March 31, 2026. The Board also approved the reconstitution of its Stakeholder Relationship Committee and appointed a new Secretarial Auditor.

The company released the audited financial results, along with the Auditor's Report, from M/s. Abhishek Kumar & Associates, Chartered Accountants.

Audit Observations and Key Audit Matters​

In the accompanying Independent Auditor's Report, M/s. Abhishek Kumar & Associates confirmed that the Financial Results for the year ended March 31, 2026, give a true and fair view. However, the audit report included specific observations regarding the company's operational finance and fund usage.

The auditors noted that certain payments for import transactions and receivables from export transactions remained outstanding for a period exceeding six months from the due date. The existence of these long-outstanding payments and receivables may have implications on the company's compliance with the Foreign Exchange Management Act, 1999 (FEMA) and reflect on working capital management.

Furthermore, the audit report identified key audit matters concerning the utilization of IPO proceeds. While the company had earmarked Rs. 1178.95 Lakhs in capex for a new manufacturing facility in Dahej, Bharuch, Gujarat, the funds were not utilized as stipulated in the initial prospectus timeline. Instead, the company established a Fixed Deposit (FDR) of Rs. 900.00 Lakhs, from which an Overdraft (OD) limit was subsequently obtained and utilized for general business activities and advances.

Governance and Committee Updates​

During the board meeting, the company formalized key governance appointments and structural changes:

• Secretarial Audit: M/s. G R Shah & Associates, Practicing Company Secretaries, were appointed as the Secretarial Auditors for the financial year 2025-26.
• Stakeholder Relationship Committee: The committee was reconstituted, with Mr. Vinod Brijmohandas Agrawal joining as a Member, effective May 30, 2026.

The reconstituted Stakeholder Relationship Committee members are listed below:

Deviation in Fund Utilization​

The company submitted its Statement of Deviation/Variation in utilization of funds raised through the Initial Public Issue (IPO) on May 30, 2026.

The IPO, which was raised on May 7, 2025, totaled Rs. 3,050.80 Lakhs. Of this amount, Rs. 2,150.80 Lakhs has been utilized as of March 31, 2026, leaving a balance of Rs. 900 Lakhs unutilized.

The utilization summary details the allocation of the IPO proceeds against original corporate objects:


Management stated that the inability to complete payments for import transactions and receivable collection from export transactions was due to the pendency of payment approval from the Reserve Bank of India (RBI).

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Disclaimer: This report is based exclusively on the financial and corporate details provided in the source material.

ARUNAYA Stock Price Movement​

As of 12:51 PM, shares of Arunaya Organics Limited are slipping by 4.87% in live trading, currently sitting at ₹20.50, or ₹1.05 lower. The equity activity saw a significant volume of 214,000 shares traded, highlighting intraday selling pressure.