Moksh Overseas Educon Limited reported its audited financial results for the year ended March 31, 2026, revealing a qualified audit opinion from its statutory auditors. The Board of Directors approved the standalone and consolidated results, which disclose material qualifications impacting the reported financial position and profitability.

The statutory auditors, S S R & Associates LLP, issued a modified opinion primarily due to the recognition of revenue from service charges amounting to ₹332.07 lakhs from related party Xera Global Education Pvt. Ltd. The auditors stated that this revenue, pertaining to the Ausbildung program, should not have been recognized in FY26 as performance obligations were not fully met and risks and rewards had not transferred. Consequently, the standalone revenue from operations and profit after tax for the year ended March 31, 2026, appear to be overstated by ₹332.43 lakhs and ₹385.16 lakhs respectively. The consolidated figures show an overstatement of ₹435.38 lakhs in revenue and ₹504.58 lakhs in dues from related parties.

Further qualifications highlight the capitalisation of expenditure aggregating to ₹286.47 lakhs for Furniture and Fittings without adequate supporting documentation such as architect certificates. The auditors noted they were unable to comment on the nature and quantum of this capitalised work. Additionally, software development income of ₹97 lakhs was presented as unbilled revenue at selling price, whereas the auditors believed it should have been valued at cost or net realizable value under inventories.

The auditors also raised concerns regarding the recoverability of trade receivables overdue for more than two years, amounting to ₹168.48 lakhs. The management has not assessed the amount of doubtful or bad debts, nor made any provisions for the same, leading to an inability to ascertain the recoverability of these dues.

Financial Performance

Despite the qualifications, the reported standalone financial results show a total income of ₹1,197.27 lakhs for the year ended March 31, 2026, compared to ₹989.68 lakhs in the previous year. The company reported a profit after tax of ₹215.71 lakhs, a significant increase from the previous year's ₹6.39 lakhs. However, after adjusting for the audit qualifications, the net profit turns into a loss of ₹70.03 lakhs.

Board Decisions

In addition to the financial results, the Board approved the re-appointment of M/s. Shah & Vejani, Chartered Accountants, as the internal auditor for the financial year 2026-27. The re-appointment is effective from May 30, 2026.

moxsh overseas educon has confirmed full compliance with the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 for the financial year ended March 31, 2026. The company submitted a compliance certificate to the National Stock Exchange of India Limited on May 28, 2026, verifying the maintenance of its Structured Digital Database (SDD). This certification is crucial for ensuring transparency and preventing insider trading by tracking the dissemination of Unpublished Price Sensitive Information (UPSI).

The compliance certificate, issued by practising company secretary Prachi Bansal of Prachi Bansal and Associates, validates that the company maintained a non-tamperable SDD with controlled access. The system captured the nature of UPSI along with precise date and time stamps, maintaining an internal audit trail. The database is designed to preserve records for a period of 8 years, meeting regulatory standards for data retention.

During FY26, the company was required to capture 11 specific events involving UPSI. The certification confirms that Moxsh Overseas Educon Limited successfully recorded all 11 mandated events within the database. The report further stated that no non-compliance was observed during the previous financial year, indicating a clean record regarding the handling of sensitive information.

Compliance Details

The certificate outlines the specific operational controls in place for the SDD:

The submission was signed by Dhananjay Jaichand Shah, Managing Director of Moxsh Overseas Educon Limited. The independent certification by Prachi Bansal, bearing UDIN A043355H000479153, was finalized on May 25, 2026, in Faridabad.