Key Clarification Details

The Company received a query from the stock exchange dated June 10, 2026, regarding disclosure of a qualified opinion in the Statutory Auditor's Report for FY2026.

In response, the Company submitted a clarification letter from Statutory Auditors S N Shah & Associates (FRN: 109782W) confirming that:

  • The Independent Auditor's Reports on Standalone and Consolidated Financial Results for year ended March 31, 2026 carry an unmodified (clean) opinion
  • The reports do not contain any qualification, adverse opinion, or disclaimer of opinion
  • The reference to "Basis of Qualified Opinion" was an inadvertent typographical error due to clerical oversight
  • The correct heading should read "Basis for Opinion"
  • The error was limited solely to the heading/title and does not affect audit procedures, conclusions, or the opinion expressed
  • Financial results remain unchanged

Audit Report Emphasis of Matter - Standalone Financials

The audit reports highlight several material matters:

Joint Venture Advance: Company accepted advance of ₹1.21 crores from a private limited company in FY2017-18 for starting a joint venture. No joint venture commenced and advance amount not repaid as of March 31, 2026.

Loan Provision: Management made provision of ₹1,319.00 lakhs (₹13.19 crores) against Loans & Advances for proposed joint venture during FY2026. Provision recognized based on assessment of recoverability and prudential considerations.

Inventory Write-down: Inventory written down by ₹80.61 lakhs to estimated net realizable value due to deterioration. Management did not provide physical verification report for inventories held as at March 31, 2026, preventing auditor verification of existence, condition, and quantities.

Overdraft Facility: Punjab National Bank overdraft facility fully repaid during FY2026 with no outstanding amount as at balance sheet date.

Partnership Investments: Company is partner in five partnership firms with real estate development objectives and has invested in subsidiary dealing in oxygen gases. Capital contribution of ₹140.54 crores represents 90.41% of total assets. One partnership firm deployed ₹126.11 crores out of ₹133.63 crores contribution towards loans to body corporates and partnership firms.

Consolidated Financial Results Composition

Financial results include:

  • Holding Company: Hariyana Ship Breakers Limited
  • Subsidiary: Hariyana Air Products (unaudited results)
  • Associates:
  • Goyal Hariyana Realty (audited)
  • Orchid Lakeview Developers (audited)
  • Whitefield Projects (unaudited)
  • Swastik Developers (unaudited)

Group capital contribution excluding subsidiary: ₹140.36 crores (90.40% of total assets)

Financial Impact

Reported losses for year and quarter ended March 31, 2026 include:

  • Provision for Loans & Advances: ₹1,319.00 lakhs
  • Inventory write-down: ₹80.61 lakhs
  • Subsidiary loss: ₹0.05 lakhs after tax
  • Associate share of net profit: ₹438.45 lakhs (quarter) and ₹471.78 lakhs (year)

Auditor Information

Firm: S N Shah & Associates, Chartered Accountants

FRN: 109782W

Signing Partner: CA Dhruvin Joshi (Membership No.: 612290)

Report Dates: May 29, 2026 (Audit Reports), June 11, 2026 (Clarification Letter)

Company Representative

Date: June 15, 2026