Newtrac Foods & Beverages Limited reported a net loss of ₹15.25 crore for the financial year ended March 31, 2026, alongside a disclosure that its statutory auditor issued a disclaimer of opinion. The auditor, NKSC & Co., stated that the management failed to make available necessary records and supporting documents required to conduct the audit. This lack of documentation prevented the auditor from confirming or verifying the company's state of affairs, including its loss and cash flows for the period.

The company submitted the Statement on Impact of Audit Qualifications to the BSE in compliance with SEBI LODR Regulation 33(3)(d). The statement detailed that the audit qualification appeared for the first time in the current financial year. Management attributed the issue to ongoing concerns regarding the availability of records but did not provide a quantified impact or specific reasons for the inability to estimate the financial effect.

The financial figures for the standalone and consolidated results remained unchanged despite the qualification. The company reported a total income of ₹8.26 crore and a total expenditure of ₹23.51 crore. Earnings per share (EPS) stood at -0.08, while total assets and total liabilities were both recorded at ₹1991.24 crore. The net worth of the company was reported at ₹1958.57 crore.

The Audit Committee and the Board of Directors reviewed and approved the statement on the impact of audit qualifications during their respective meetings held on May 30, 2026. The signatories to the statement included Managing Director Bhavin Yogesh Shukla, CFO Harish Sharma, Audit Committee Chairman Drumil Ashok Gandhi, and Statutory Auditor Priyank Goyal.

Financial Summary for FY26

Newtrac Foods & Beverages Limited reported a net loss of ₹636.95 lakh for the financial year ended March 31, 2026, a significant decline from the profit of ₹179.72 lakh recorded in the previous year. Revenue from operations for the year stood at ₹1,632.01 lakh, down from ₹6,407.78 lakh in FY25. The company’s total assets decreased to ₹1,834.66 lakh as of March 31, 2026, from ₹2,740.41 lakh a year earlier.

The Board of Directors approved the audited financial results for the quarter and year ended March 31, 2026, during a meeting held on May 30, 2026. The meeting also addressed the resignation of the statutory auditor, NKSC & Co., and the subsequent appointment of M/s Sarang Shivajirao Chavan and Associates as the new statutory auditor effective June 1, 2026. The outgoing auditor cited an inability to obtain sufficient appropriate audit evidence as the reason for the disclaimer of opinion on the financial statements.

The company’s financial statements revealed that the management had not made available necessary records and supporting documents, including loan agreements and trade confirmations, required for the audit. Consequently, the auditors were unable to verify the state of affairs, loss, and cash flows for the year. The notes to the accounts also highlighted that the company did not have a Company Secretary as of the date of approval, a non-compliance under Section 203 of the Companies Act, 2013, though it was not expected to have a material impact on the results.

Financial Performance

The table below summarizes the key financial metrics for the year ended March 31, 2026, compared to the previous year:

Auditor Changes and Compliance

The resignation of NKSC & Co. was effective immediately, with the firm’s term originally scheduled to expire at the conclusion of the company’s 42nd Annual General Meeting in 2029. The new auditor, M/s Sarang Shivajirao Chavan and Associates, brings experience in audit and assurance services, taxation consultancy, and financial reporting. The firm is headquartered in Ahmedabad and holds Firm Registration No. 159649W.

The notes to the financial results also mentioned a delay in re-applying for the Tax Deduction and Collection Account Number (TAN) following the resignation of the managing director in FY25. The company submitted the TAN application in the current financial year. Additionally, the statement of cash flows showed a net decrease in cash and cash equivalents of ₹94.95 lakh during the year, with closing balances at ₹0.58 lakh.