Madhucon Projects Reports Consolidated Financial Results for FY 2025-26 Amid Qualified Audit Opinion

Madhucon Projects Reports Consolidated Financial Results for FY 2025-26 Amid Qualified Audit Opinion​

Madhucon Projects Limited announced the Board-approved audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. The company's statutory auditors, M/s P. Murali & Co., issued a qualified opinion on the financial results.

The consolidated financial statements reflect significant financial activity but highlight several areas of concern, including the company's ability to continue as a going concern and outstanding statutory dues.

Financial Results Summary​

For the year ended March 31, 2026, Madhucon Projects Limited reported a total comprehensive loss of (47,512.63) Lakhs.

The key figures from the consolidated financial statement of the company are presented below:

Consolidated Standalone Financial Highlights (Lakhs)

Audit Opinion and Qualifications​

The audit report notes a qualified opinion, citing several material concerns that impact the financial presentation.

Key Audit Findings:

• Going Concern: The auditors noted that the Group's current liabilities exceeded current assets. Furthermore, multiple subsidiaries were observed to have suffered significant losses or had their net worth fully or substantially eroded, indicating material uncertainty regarding the Group's ability to continue as a going concern.
• Statutory Defaults: The company was noted to have defaulted on statutory dues, including those under The Income Tax Act, 1961, and The Employees Provident Funds and Miscellaneous Provisions Act 1952.
• Subsidiary Issues: The audit report reviewed numerous subsidiaries, noting instances where:

* Net worth was fully or substantially eroded, and going concern was affected (e.g., Chhapra - Hajipur Expressways Limited, Madurai Tuticorin Expressways Limited).
* The assets and liabilities of various subsidiaries were complex, with multiple instances of partial write-offs of investments made in subsidiaries.
* The company made provisions for impairment on investments but lacked proper justification in certain areas.

Operational and Governance Concerns​

Several operational issues and legal complexities were highlighted by the auditors concerning the Group's structure and assets:

* Insolvency Processes: Several subsidiaries were involved in the Corporate Insolvency Resolution Process (CIRP). Examples include:
* Ranchi Expressways Ltd (REL): Admitted to CIRP by the National Company Law Tribunal (NCLT) on December 22, 2023.
* Madurai Tuticorin Expressways Limited (MTEL): Its project was terminated by NHAI on March 17, 2023.
* Trichy-Thanjavur Expressways Limited (TNDK): The project was terminated by NHAI on March 17, 2023.

• Asset Valuation: In some cases, the auditors noted that the Company failed to produce title deeds for certain immovable properties.
• Compliance Deficiencies: The report indicated issues such as:

* Internal Audit not being conducted for the period 1st April 2025 to 31st March 2026.
* Failure to adhere to specific sections of the Companies Act, 2013, regarding the appointment of Key Management Personnel, the Audit Committee, and Independent Directors.

The management maintained that the use of the going concern assumption remains appropriate, citing the settlement of dues with banks under OTS agreements and continuing discussions with other lenders for a debt resolution plan.

MADHUCON Stock Price Movement​

On Wednesday, Madhucon Projects Limited shares slipped by 0.57% to settle at ₹5.24. The stock traded on 4,912 shares, concluding the session within a day's range of ₹5.12 to ₹5.48.