Nutricircle Limited has submitted a Statement of Impact of Audit Qualification to BSE Limited, pursuant to SEBI Circular No. HO/49/14/14(7)2025-CFD-POD2/1/3762/2026 and BSE Circular No. 20250102-4. This disclosure concerns the Audit Report with a modified (qualified) opinion for the quarter and financial year ended 31st March 2026.

The statutory auditor, M/s. N S V R & Associates LLP, issued a qualified opinion on the company's financial results. The qualification pertains to an unsecured loan of ₹50 lakhs advanced to Mr. K. Veersham. The auditor noted that the company could not provide a balance confirmation or alternative evidence for this loan outstanding, creating a limitation in the audit scope regarding the completeness and accuracy of the loan balance.

Management's Views on the Qualification

The management provided its views on the audit qualification. The advance of ₹50 lakhs was paid to Mr. K. Veersham, described as a 'Crop Organizer farmer', during the financial year 2017-18. The purpose was for cultivating specific varieties of crops, namely Quinoa, Jowar, and chickpea. According to management, the crops were completely damaged due to adverse climate conditions, resulting in no yield. Mr. Veersham allegedly promised future cultivation as compensation for the loss.

The company states it has been negotiating for years, but Mr. Veersham has not responded. Management cites the 'sensitivity of the matter of farmers' as a reason for not taking rigorous steps to enforce the commitment. The company confirms it tried to communicate for a confirmation of the receipt but failed, and it is not in a position to recover the advance by any other means. Management concludes that recovery is certainly not possible.

Financial Impact Assessment

A quantitative statement on the impact of the audit qualification was provided for the financial year ended 31st March 2026 (amounts in ₹ lakhs). The management's assessment is that the qualification has no impact on the audited financial figures:

  • Turnover/Total Income: Reported as 1776.61; Adjusted figure remains 1776.61
  • Total Expenditure: Reported as 1746.19; Adjusted figure remains 1746.19
  • Net Profit/(Loss): Reported as 30.42; Adjusted figure remains 30.42
  • Total Assets: Reported as 822.78; Adjusted figure remains 822.78
  • Total Liabilities: Reported as 822.78; Adjusted figure remains 822.78
  • Net Worth: Reported as 692.25; Adjusted figure remains 692.25

No other financial items were deemed appropriate for adjustment by management. The management's view is that the impact of the audit qualification is not quantifiable, and they have provided reasons for being unable to recover the amount.