Sanchay Finvest reports FY26 loss, auditor flags compliance gaps
Sanchay Finvest reported a net loss of ₹141.40 lakh for FY26, widening from the previous year's loss, driven by lower revenue and extraordinary expenses including exchange penalties. The statutory auditor issued an unmodified opinion but flagged critical issues such as unpaid preference dividends and inadequate reconciliation systems. The board appointed a new internal auditor and accepted the resignation of the secretarial auditor.
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Sanchay Finvest reported a widened net loss of ₹141.40 lakh for the financial year ended March 31, 2026, compared to a loss of ₹29.20 lakh in the previous year, primarily due to extraordinary items and operational expenses. The board approved the audited financial results on May 28, 2026, alongside the appointment of a new internal auditor and the acceptance of the secretarial auditor's resignation. The statutory auditor, M/s Jain Jagawat Kamdar & Co., issued an audit report with an unmodified opinion but drew attention to significant compliance and internal control deficiencies.
Financial Performance
The company recorded a total revenue of ₹62.46 lakh for FY26, a decline from ₹111.71 lakh in the previous year. Total expenses for the year stood at ₹83.55 lakh. The bottom line was significantly impacted by extraordinary items amounting to ₹8.11 lakh, which included a demand notice of ₹47.88 lakhs from the National Stock Exchange of India Limited towards penalties and interest for non-compliances observed during an inspection for the period April 1, 2023, to March 31, 2024.
| Particulars | Year Ended 31-03-2026 (Audited) | Year Ended 31-03-2025 (Audited) |
|---|---|---|
| Total Revenue (net) | 62.46 | 111.71 |
| Total Expenses | 83.55 | 104.55 |
| Profit before tax | (145.68) | (29.20) |
| Net Profit / (Loss) | (141.40) | (29.20) |
For the quarter ended March 31, 2026, the company reported a net loss of ₹41.91 lakh. Revenue from operations for the quarter was ₹0.84 lakh, while other income contributed ₹0.90 lakh. The board also noted that the company wrote off current assets and investments totaling ₹1.81 lakhs during the quarter.
Auditor Observations and Governance
The statutory auditor highlighted several material matters in the report. It noted that the company has not paid preference share dividends at the agreed rate, has not paid all shareholders, and has not renewed or redeemed preference shares post their due date, indicating potential non-compliance with terms of issue. Additionally, the auditor pointed out that the company lacks an appropriate system for obtaining confirmations and performing reconciliations of balances for deposits, advances, and other receivables or payables, limiting the ability to determine the impact on financial results.
The company also faced outstanding dues of ₹28.39 lakhs as at March 31, 2026, as reflected in the National Stock Exchange's financial status report. Of this amount, dues totaling ₹22.50 lakhs were paid on May 6, 2026, following a notice received on May 4, 2026.
Board Appointments
In governance changes, the board accepted the resignation of Mr. Ramesh Chandra Mishra from M/s Ramesh Chandra Mishra & Associates as Secretarial Auditor effective from the close of business hours on May 28, 2026, due to other professional commitments. Concurrently, the board appointed M/s. S K B J P & Co. Chartered Accountants as the Internal Auditor for the financial year 2026-27 to comply with the Companies Act, 2013 and SEBI regulations.
Historical Stock Returns for Sanchay Finvest
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.52% | +5.40% | +17.50% | +134.37% | +73.56% | +1,619.21% |
What specific measures will the new internal auditor implement to address the significant compliance and internal control deficiencies flagged by the statutory auditor?
How does the company plan to manage the outstanding preference share liabilities and potential legal repercussions following the auditor's observations on non-payment?
Will the recent write-off of current assets and investments lead to a restructuring of the company's investment strategy or asset management policies?
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