McNally Bharat Engineering Company Limited Releases Q1 2026 Results and Approves Statutory Auditor Transition
McNally Bharat Engineering Company Limited released its Unaudited Standalone and Consolidated Financial Results for the first quarter ended June 30, 2026. The company's Board of Directors meeting on August 12, 2026, approved the results and recommended key corporate actions, including the appointment of a new Statutory Auditor for a five-year term.The unaudited results were reviewed by V. Singhi & Associates, Chartered Accountants. The limited review report concluded that nothing came to their attention that suggests the statements contain any material misstatement or have failed to disclose required information, based on Indian Accounting Standard 34 (Ind AS 34).
Auditor Appointment and AGM Details
The Board meeting outcome included a recommendation, subject to member approval at the ensuing Annual General Meeting, for the appointment of M/s Singhi & Co., Chartered Accountants. The proposed new auditors would serve a term of five consecutive years, starting from the conclusion of the 63rd Annual General Meeting until the conclusion of the 68th AGM in the calendar year 2031, replacing the current Statutory Auditors, V. Singhi & Associates.
The company has also scheduled its 63rd Annual General Meeting for Friday, September 25, 2026, to be held via Video Conference or other Audio Visual Means (VC/OAVM). The closure of the Register of Members and Share Transfer Books is set between September 19 and September 21, 2026.
Key Highlights from Auditing Reports
The Limited Review Report highlighted several matters regarding accounting treatment and financial exposure for both standalone and consolidated results:
Resolution Plan Implementation:
Both the standalone and consolidated reports drew attention to the accounting treatment related to the implementation of a Resolution Plan. The plan, approved under the Corporate Insolvency Resolution Process by the Hon'ble National Company Law Tribunal (NCLT) dated December 19, 2023, required the Successful Resolution Applicant (SRA) to arrange for the buyback of 5% of equity shares held by Financial Creditors. The NCLT, in an order dated June 10, 2026, determined that the Rs 3,000 Lakhs equity buyback obligation is mandatory and non-negotiable.
Financial Risk and Subsidiaries:
The review noted that various current assets and liabilities, including Trade Receivables and Trade Payables, are subject to confirmation and reconciliation with respective parties. These balances are also contingent upon the outcome of pending arbitrations and claim settlements.
The consolidated results included information regarding several subsidiaries and joint ventures. The financial results for these entities showed a Group's share of total loss of Rs 0.29 Lakhs and Nil total income for the three months ended June 30, 2026.
| Type | Entity | Status/Finding |
|---|---|---|
| Wholly Owned Subsidiary | McNally Bharat Equipments Limited | Results included in the Statement. |
| Subsidiaries of Holding Company | MBE Mineral Technologies Pte Limited; MBE Minerals Zambia Limited | Results reported (Refer Note 9). |
| Joint Ventures | EMC MBE Contracting Company LLC, McNally -Trolex, McNally -AML, McNally -Trolex -Kilburn | Results reported (Refer Note 9). |
McNally Bharat Engineering Company Limited is an ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018 certified company.
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