Oswal Greentech Limited Approves FY Results Amid Allegations of Fraudulent Acts and Qualified Audit Opinion

Oswal Greentech Limited Approves FY Results Amid Allegations of Fraudulent Acts and Qualified Audit Opinion​

Oswal Greentech Limited announced on May 26, 2026, that its Board of Directors reviewed and approved the annual audited financial results for the quarter and financial year ended March 31, 2026. The company released the results alongside a notice detailing allegations of fraudulent conduct involving a former authorized representative.

Statutory Auditors, Mehta Chokshi & Shah LLP, issued an audit report containing a qualified opinion, citing concerns related to inter-corporate deposits (ICDs) and real estate advances, alongside potential understated figures due to a dispute over interest charges.

Alleged Fraudulent Activity Involving Former Representative​

The company revealed that it has identified alleged fraudulent and unauthorized acts involving Mr. Vishnu Prasad Muddana, a former authorized representative. The issue concerns a proposed property transaction involving the Company's land situated in Rishra Village, Serampore, District Hooghly, West Bengal.

Mr. Muddana served as the Chief Financial Officer of Oswal Agro Mills Limited, a Group Company, from January 28, 2025, to July 07, 2025. Following his resignation, the Company observed alleged acts of collusion, misrepresentation, and unauthorized interference regarding the property, despite the lawful termination of the Agreement of Conveyance executed with RSV Construction Private Limited.

Oswal Greentech Limited has initiated legal proceedings and filed a legal notice in this regard. The estimated impact of the alleged fraudulent and unauthorized acts is quantified as follows:

Financial Performance and Audit Qualifications​

The annual financial results were reviewed and recommended by the Audit Committee and approved by the Board of Directors on May 26, 2026.

The Statement of Profit and Loss shows significant figures for the year ended March 31, 2026, compared to the previous year:

Financial Adjustments and Qualification Basis​

The qualified opinion from the auditors is based on two primary issues: the ICD dispute and unconfirmed advances.

1. Inter-Corporate Deposit (ICD) Dispute:
The auditors noted a dispute regarding interest charged on ICDs. An arbitration award of Rs. 9,717.00 lakh was passed in favor of the Company against a total claim of Rs. 47,212.27 lakh. Because the Company plans to contest this award at the High Court of New Delhi, no further interest was charged.

This dispute led to the following understatement of income and assets:

• Interest income and current assets are understated by Rs. 4,249.10 lakh (compared to Rs. 4,245.55 lakh in the previous year).
• Interest income and current assets are understated by Rs. 11,754.57 lakh (compared to Rs. 7,505.47 lakh in the previous year).

2. Provision for Advances:
The auditors highlighted that the Company granted ICDs and real estate advances aggregating to Rs. 1,22,676.83 lakh outstanding as of March 31, 2026. Due to the lack of confirmation from counterparties, the management made provisions for these advances, treating them as exceptional items.

The specific provisions recognized are:

• ICD (Including interest receivable thereon): Rs. 74,22,18,962/- (Rupees Seventy-Four Crore Twenty-Two Lakh Eighteen Thousand Nine Hundred Sixty-Two Only).
• Real estate advance: Rs. 27,00,00,000/- (Rupees Twenty-Seven Crores Only).

The management continues to pursue legal remedies for the recovery of these amounts.

OSWALGREEN Stock Price Movement​

Shares of Oswal Greentech Limited are edging higher to ₹25.62 as of 2:24 PM, rallying 1.55% in live trading to gain ₹0.39. The stock is seeing notable investor interest, trading today on a total volume of 103,386 shares.