Solvex Edibles Limited (formerly Solvex Edibles Private Limited) has filed a Statement on Impact of Audit Qualification with BSE Limited, pursuant to Regulation 33 of SEBI (Listing Obligations Disclosure Requirements) Regulations, 2015 and Circular No. CIR/CFD/CMD/56/2016 dated May 27, 2016. The disclosure relates to the Audited Standalone & Consolidated Financial Results for the half year and year ended on 31st March, 2026, which were approved by the Board of Directors in its meeting held on May 30, 2026.
Financial Details (Standalone)
The audited standalone financial figures, as reported before adjusting for qualifications, for the year ended 31 March 2026 are:
- Total Income: ₹6,692.07 lacs
- Total Expenditure: ₹6,624.68 lacs
- Net Profit/(Loss) After Tax: ₹(12.57) lacs
- Earnings Per Share: ₹(0.16)
- Total Assets: ₹6,05,894 lacs (figure appears misaligned in source)
- Total Liabilities: ₹2,42,661 lacs
- Net Worth: ₹3,63,233 lacs
The adjusted figures after accounting for audit qualifications are stated as 'NA' (Not Available) for all line items, indicating the impact could not be quantified.
Financial Details (Consolidated)
The audited consolidated financial figures, as reported before adjusting for qualifications, for the year ended 31 March 2026 are:
- Total Income: ₹15,479.26 lacs
- Total Expenditure: ₹15,358.12 lacs
- Net Profit After Tax: ₹7.10 lacs
- Earnings Per Share: ₹0.09
- Total Assets: ₹11,41,219 lacs (figure appears misaligned in source)
- Total Liabilities (other than shareholder's funds): ₹7,633.05 lacs
- Net Worth: ₹3,779.14 lacs
The adjusted figures after accounting for audit qualifications are stated as 'NA' for all line items.
Details of Audit Qualifications
The auditors, Arora Gupta & Co. (FRN: 021313C), have issued a Qualified Opinion, which is a first-time qualification for the company. The qualifications are:
1. IPO Proceeds Utilization: The company/group raised IPO funds amounting to ₹830.99 Lakhs for the acquisition of proposed Plant and Machinery. The auditors expressed an inability to obtain adequate and appropriate audit evidence regarding certain advances and the utilization of these IPO proceeds. This includes an advance involving a subsidiary LLP and utilization towards repayment/prepayment of borrowings.
2. Employee Benefits: The company/group has not recognized and disclosed employee benefit obligations for gratuity and leave encashment in accordance with Accounting Standard-15 (Employee Benefits). As no actuarial valuation was performed, the impact on the financial statements could not be determined.
3. MSME Interest Liability: Interest payable on dues to Micro and Small Enterprises, as required under the MSMED Act, 2006, has not been recognized or provided for. The impact on profit and liabilities has not been quantified due to a lack of complete records and vendor confirmations.
Management's Views on Unquantified Impact
For all qualifications where the impact is not quantified, management's estimation is that the impact is "presently not ascertainable."
- Regarding IPO proceeds, management believes funds were used for stated prospectus objects but acknowledges a lack of adequate documentation evidence. The company is strengthening documentation and monitoring mechanisms for future verification.
- Regarding employee benefits, the liability can only be determined via an independent actuarial valuation. The company is collating data to facilitate this valuation and will account for any liability upon its completion.
- Regarding MSME interest, the company is undertaking a detailed vendor review and will evaluate recognition requirements based on applicable laws once information is complete.
The auditors have commented that these matters are dealt with in the Basis for Qualified Opinion paragraph of their report and the financial impact remains unquantified for the reasons stated.