Rajeswari Infrastructure Limited reported a net loss of ₹13.05 lakh for the year ended March 31, 2026, widening from a loss of ₹9.11 lakh in the previous year. The company recorded total income of ₹0.09 lakh for the fiscal year, while its equity share capital stood at ₹553.09 lakh and reserves remained negative at ₹47.54 lakh. The financials reflect the ongoing challenges following the Corporate Insolvency Resolution Process (CIRP), which concluded after the National Company Law Tribunal (NCLT) approved a resolution plan on January 13, 2026.

The company's audited standalone financial results for FY26 were accompanied by an Independent Auditor's Report that issued a disclaimer of opinion. K M K U & Associates, the statutory auditor, stated they were unable to obtain sufficient appropriate evidence to determine whether the financial statements complied with Indian Accounting Standards. The disclaimer stems from significant uncertainties regarding the company's ability to continue as a going concern and the adequacy of asset valuations following the resolution plan approval.

Auditor's Key Observations

The auditor highlighted several material issues that prevented the issuance of a standard review report. Notably, the company did not conduct physical verification of inventories or complete impairment assessments for tangible and intangible assets. Additionally, the auditor noted that claims admitted during CIRP totaling ₹35.34 crore were classified as contingent liabilities rather than recognized liabilities, a departure from accounting standards. If these amounts had been provisioned, the net loss would have increased by ₹22.65 crore.

The report also pointed out non-compliance with the Income Tax Act, 1961, regarding non-deduction or non-deposit of Tax Deducted at Source (TDS). The auditor expressed an inability to comment on the fairness of tax-related balances and the recoverability of loans and advances amounting to ₹1.21 crore, which were subsumed in CIRP claims but remain on the books.

Financial Performance

The audited financial results for the year ended March 31, 2026, reflect the ongoing challenges faced by the company. Revenue from operations remained nil, with other income contributing to the total income. The company's equity share capital stood at ₹553.09 lakh, while reserves were negative at ₹47.54 lakh.

Governance and Oversight

Following the NCLT order on January 13, 2026, the CIRP concluded, and the powers of the Board of Directors, which were previously suspended, are now exercised by a Monitoring Committee. Mr. Sanjay Mehra, the former Resolution Professional, has been appointed as the Chairman of the Monitoring Committee. The financial statements were prepared on a going concern basis based on the assessment of the effects of the approved resolution plan.

Rajeswari Infrastructure Limited has appointed M/s KMKU & Associates as its statutory auditor for a period of five consecutive years from 2024 to 2029. The decision was taken by the company's Monitoring Committee during a meeting held on March 28, 2026. The appointment is effective from the date of the meeting and aims to comply with the requirements of the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The company had previously been admitted into the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016, following an order by the National Company Law Tribunal (NCLT) on May 10, 2023. The resolution plan submitted by Mr. Guruswamy Ramamurthy was approved by the NCLT on January 13, 2026, concluding the CIRP. Consequently, the powers of the Board of Directors were suspended, and management of the company's affairs was undertaken by the Monitoring Agency constituted under the approved resolution plan.

Auditor Details

M/s KMKU & Associates, Chartered Accountants, holds Firm Registration Number (FRN) 030836N and is a peer-reviewed firm bearing certificate number 021926. The firm was established in 2016 and specializes in statutory audit, internal audit, tax audit, due diligence, transaction advisory, valuation, GST advisory, regulatory compliances, and financial consulting.

The firm is registered with the Institute of Chartered Accountants of India (ICAI) and is empanelled as a stock auditor with The Jammu & Kashmir Bank Limited for the financial years 2025-26 to 2027-28. The Monitoring Committee, chaired by Mr. Sanjay Mehra, approved the appointment to ensure continued regulatory compliance following the conclusion of the insolvency proceedings.