Oswal Greentech Reports FY26 Loss, Discloses ₹14.58 Crore Fraud

The Board of Directors meeting held on Tuesday, May 26, 2026, approved the following:

Approved audited financial results for the quarter and year ended March 31, 2026
Results were reviewed by the Audit Committee in its meeting held on May 26, 2026
Statutory Auditors M/s Mehta Chokshi & Shah LLP issued an audit report with modified opinion
Extract of financial results to be published in newspapers as per Listing Regulations

Identified alleged fraudulent and unauthorized acts involving Mr. Vishnu Prasad Muddana, former authorized representative
Mr. Muddana served as Chief Financial Officer of Oswal Agro Mills Limited (Group Company) from January 28, 2025 to July 07, 2025
Related to proposed property transaction concerning Company's land at Rishra Village, Serampore, District Hooghly, West Bengal
Estimated financial impact: ₹14.58 Crores
Company completed preliminary investigation and obtained supporting evidence on May 25, 2026
Company has issued legal notice and initiated appropriate legal proceedings
Matter reported to appropriate authorities

Full provision of ₹74.22 crore for ICD (including interest) to Uppal Chadha Hi-Tech Developers Private Limited
Full provision of ₹27.00 crore for real estate advance to SAS Servizio Private Limited
Total exceptional provision: ₹101.22 crore
Reason: Complete absence of repayment and overall uncertainty regarding recoverability
Company continues to pursue all available remedies for recovery

Company holds leasehold rights over approximately 13.45 acres of land
Agreement of Conveyance executed with RSV Construction Private Limited for ₹16.20 Crores
Advance of ₹1.62 Crores received from RSV and classified as current liability
Agreement terminated after resignation of authorized representative
Former representative allegedly trespassed and undertook unauthorized activities
Company filed criminal complaint at Serampore Police Station, West Bengal
No revenue recognized from this agreement
Management believes company has strong legal position

Statutory Auditors Mehta Chokshi & Shah LLP issued qualified opinion due to:

Dispute relating to interest charged on Inter Corporate Deposits during COVID period
Arbitration award of ₹971.70 lakh passed in favor of company against total claim of ₹4,721.23 lakh
Shortfall of ₹3,749.53 lakh
Company has challenged arbitration award at Hon. High Court of New Delhi
Consequently, interest income understated by ₹424.91 lakh (PY: ₹424.56 lakh)
Current assets understated by ₹1,175.46 lakh (PY: ₹750.55 lakh)

ICDs and real estate advances aggregating ₹12,267.68 lakh outstanding as of March 31, 2026
Advances subject to confirmation from counterparties, not received as of report date
Unable to verify outstanding balances, accrued interest receivable, and repayment terms
Unable to determine whether adjustment required for recoverability
Possible effect on financial statements not determinable

Auditors drew attention to:

1. Provisioning of ₹101.22 crore for ICD and real estate advance

2. Fraud on company by former employee regarding land transaction

Company recognizes Real Estate and Investing activities as separate business segments
Figures for quarters are balancing figures between audited full year and reviewed YTD figures
Dispute regarding interest on ICD with one borrower for COVID period
Company invoked arbitration clause, decided not to charge further interest pending proceedings
Interest income and current assets understated by ₹424.91 lakh and ₹1,175.46 lakh respectively
Results comply with Indian Accounting Standards (Ind-AS)
EPS not annualized for quarters
Previous period figures re-grouped/re-arranged where necessary