Innovative Tyres & Tubes Limited reported a net loss of ₹190.79 lakhs for the year ended March 31, 2026, as operational improvements failed to offset accumulated liabilities. The company's statutory auditor, B. B. & Associates, issued a qualified opinion on the annual financial results, citing material lapses in accounting and compliance that raise concerns about the accuracy of the presented financial position. The Board of Directors approved the audited results for the half year and year ended March 31, 2026, during a meeting held on May 30, 2026.

The auditor identified that balance confirmations for certain significant trade receivables and advances were not received, leaving these balances subject to reconciliation. Furthermore, the company has outstanding dues to Micro and Small Enterprises beyond the credit period prescribed under the MSMED Act. The auditor noted that the company failed to recognize the interest liability on these delayed payments due to inadequate records, preventing the determination of the consequential impact on liabilities and loss for the year.

Discontinued Operations and Compliance Gaps

The company discontinued its Tube Division during the year, which qualifies as a discontinuing operation under Accounting Standard (AS) 24. However, the financial results do not separately present the results of this division or provide the required disclosures and comparative information. Management stated that historical data could not be compiled with reasonable accuracy, resulting in non-compliance with AS 24 presentation requirements.

Additional compliance issues were flagged regarding export sales and advances received. The company made export sales of Rs 69.24 Lacs to a party where proceeds were not realized within nine months, leading to non-compliance with Foreign Exchange Management regulations without an application for time extension. Moreover, advances amounting to INR 123.29 Lakhs accepted from certain parties were not adjusted against supply of goods within 365 days, contravening Section 73 of the Companies Act, 2013.

Regulatory Scrutiny and Governance

The auditor also drew attention to the company's non-compliance with the Minimum Public Shareholding (MPS) requirements under Regulation 38 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The National Stock Exchange of India Limited had communicated this non-compliance to the company. Concurrently, the Board appointed Mr. Kamlesh Joshi as an Independent Director and Ms. Sneha Chauhan as Chairman of the Audit Committee to strengthen corporate governance.

Innovative Tyres & Tubes Limited appointed Mr. Kamlesh Joshi to ensure operational continuity following the death of Mr. Kundankumar Mishra on May 31, 2026. The appointment was made by the Board during a meeting on May 30, 2026, as Mr. Mishra was unable to attend due to his critical medical condition. The company stated the change was effective immediately, subject to applicable approvals and compliances.

Mr. Mishra passed away due to multi-organ failure. The Board of Directors and employees expressed their heartfelt condolences to his family and acknowledged his valuable contributions during his tenure with the company.

Key Appointments