Naturo Agrotech Reports Half-Year Results; Audit Raises Concerns Over Tax Dues and Inventory Valuation

Naturo Agrotech Reports Half-Year Results; Audit Raises Concerns Over Tax Dues and Inventory Valuation​

Naturo Agrotech India Limited (formerly Naturo Indiabull Ltd) has released its audited financial results for the half-year ended March 31, 2026. The company reported a loss of ₹82,06,941.64 in this period, while cash generation from operations amounted to 37.75 lakhs.

The financial statements indicate that the company’s overall profitability declined compared to the previous year, which recorded a loss of ₹1,29,71,110.12.

Financial Performance Snapshot​

The results highlight key movements across revenue and expenditure for the period ending March 31, 2026:

Cash Flow and Balance Sheet Summary​

The cash flow analysis shows that while operational activities generated 37.75 lakhs in net cash flow, financing activities contributed a deficit of 47.75 lakhs during the same period. The net change in cash and cash equivalents was recorded as a decrease of 8.70 lakhs.

Key financial positions as of March 31, 2026, compared to the previous year are detailed below:

Audit Issues and Material Concerns​

The company’s financial results were subject to a Qualified Opinion from the independent auditor. The auditors highlighted several material concerns regarding compliance and asset valuation:

Financial & Compliance Observations:

• Tax Liabilities: A significant outstanding income tax provision of 127.86 lakhs was noted, as corresponding entries had not been recorded in the company’s books of account.
• Statutory Dues: Unpaid TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) totaling 10.89 lakhs were found to be outstanding.

Asset & Operations Risks:

• Inventory Valuation: The auditors noted uncertainty regarding the valuation of inventory due to the absence of a physical verification report, adding that management valued the Inventory only at Cost, which is inconsistent with accounting standards requiring valuation at the lower of cost or Net Realizable Value (NRV).
• Receivable Uncertainty: A material concern was raised regarding Trade Receivables amounting to 1484.49 lakhs due to a lack of direct confirmation from debtors.

Cash Flow Statement Details​

The company’s cash flow generation breakdown is presented as follows:


The management of Naturo Agrotech India Limited has confirmed that the company maintains adequate internal financial controls over financial reporting and that the company is not a Core Investment Company (CIC).

Stock Price Movement​

Naturo Indiabull Ltd saw its shares settle at ₹2.50 after the market close on Monday, posting a gain of 4.60%. The stock remained completely flat through the session, as its high and low traded identically at this price point.