Shiva Granito Export Ltd reported a standalone net loss of ₹5.80 lakh for the fiscal year ended March 31, 2026 (FY26), reversing a net profit of ₹2.48 lakh recorded in FY25. The Board of Directors approved the audited financial results on August 6, 2026, during a meeting held at its registered office in Udaipur. While revenue from operations expanded by 36.3% year-on-year to ₹1,173 lakh, the profitability deterioration and significant audit qualifications raise concerns over the quality of earnings and asset valuation.

The statutory auditor, Ankit Suresh Jain & Co., issued a qualified opinion on the standalone financial results for the half-year and full-year ended March 31, 2026, pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The qualification stems from four material areas: non-provision for expected credit losses on trade receivables amounting to ₹7,74,37,115; lack of appropriate inventory valuation due to unavailable stock records; failure to provide interest payable to micro and small enterprises under Section 16 of the Micro, Small and Medium Enterprises Development Act, 2006; and absence of actuarial valuation for gratuity liability under Ind AS 19.

Financial Performance Overview

Shiva Granito Export’s revenue from operations rose to ₹1,173 lakh in FY26 from ₹860.49 lakh in FY25. Other income remained flat at ₹5.21 lakh. Total expenses increased to ₹1,176.75 lakh from ₹858.73 lakh, driven primarily by higher purchases of stock-in-trade (₹979.82 lakh vs ₹633.71 lakh) and cost of materials consumed (₹108.25 lakh vs ₹283.43 lakh). Depreciation and amortization expense rose to ₹28.99 lakh from ₹21.57 lakh.

The company incurred a tax expense of ₹7.26 lakh (current tax ₹0.23 lakh and deferred tax liability ₹7.03 lakh), contributing to the net loss. Earnings per share stood at -₹0.04 basic and diluted, compared to ₹0.02 in the previous year.

What the Numbers Show

The divergence between revenue growth and profitability highlights margin compression. While top-line grew by 36.3%, total expenses grew at a faster pace of 37.0%, eroding operating margins. The shift from profit to loss is largely attributable to the timing of deferred tax liabilities and higher operational costs. Furthermore, the cash flow statement reveals that cash generated from operations was ₹111.46 lakh in FY26, a significant improvement from the outflow of ₹741.69 lakh in FY25, suggesting better working capital management despite the accounting loss.

Balance Sheet and Cash Flow

Total assets increased to ₹2,029.34 lakh from ₹1,898.49 lakh in FY25. Current assets dominated the balance sheet at ₹1,713.09 lakh, with inventories standing at ₹946.39 lakh and cash and cash equivalents at ₹796.91 lakh. Total borrowings decreased slightly to ₹411.75 lakh (short-term ₹252.20 lakh, long-term ₹159.55 lakh) from ₹518.64 lakh in the prior year.

Operating cash flow turned positive at ₹110.32 lakh, offsetting investing outflows of ₹34.20 lakh and financing outflows of ₹77.28 lakh. The net decrease in cash and cash equivalents was marginal at ₹1.16 lakh, ending the year with ₹82.16 lakh in bank balances other than cash equivalents.

Audit Qualifications Impact

The auditor noted that had the provision for expected credit losses of ₹7,74,37,115 been made, the profit before tax would have decreased by the same amount, significantly deepening the loss. The inability to verify inventory existence and valuation leaves a substantial portion of current assets (₹946.39 lakh) unconfirmed. Management stated it does not expect any credit loss currently and intends to address the qualifications, but the repetitive nature of these issues since FY24 underscores persistent internal control weaknesses.

Shiva Granito Export Limited has appointed M/s Ankit Suresh Jain & Co. as its Statutory Auditor, effective August 3, 2026. The Board of Directors approved the appointment during a meeting held on August 3, 2026, to fill the casual vacancy created by the resignation of the previous Statutory Auditor. This change in audit oversight ensures continuity in compliance and financial reporting for the company while the outgoing auditor’s tenure concludes. The appointment remains subject to ratification by shareholders at the company’s ensuing General Meeting.

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2018, read along with SEBI Circular CIR/CFD/CMD/4/2015 dated September 9, 2015. Abhinav Upadhyay, Managing Director of Shiva Granito Export Limited, signed the intimation to the BSE Limited.

M/s Ankit Suresh Jain & Co., holding Firm Registration No. 023180C with the Institute of Chartered Accountants of India (ICAI), will serve until the next Annual General Meeting. The firm, incorporated in 2017 with its registered office in Udaipur, Rajasthan, is also a Peer Reviewed firm under Certificate No. 022301 dated September 24, 2025.

Auditor Profile and Scope

M/s Ankit Suresh Jain & Co. provides a range of services including audit and assurance, direct and indirect tax consultancy and litigation, project financing, and management consultancy. The firm audits listed and private companies across diverse sectors such as Industrial, Infrastructure, Consumer Products, Financial Services, Technology, Telecommunications, and Professional Services.

The appointment addresses the immediate need for statutory audit coverage following the departure of the prior auditor. Shareholders will vote on this appointment during the upcoming General Meeting, as required by regulatory norms for auditor appointments filling casual vacancies.