SK International Export Ltd reported a net loss of ₹29.67 lakh for the financial year ended March 31, 2026, as total income declined to ₹226.90 lakh from ₹528.02 lakh in the previous year. The company's statutory auditors, SDA & Associates, issued a qualified opinion on the financial results, highlighting material uncertainty regarding the entity's ability to continue as a going concern due to the absence of substantial operational business activities and a dependency on gains from speculative trading in equity, F&O, and commodity markets.

The auditor's report identified multiple significant issues, including the inability to verify balances for trade payables, trade receivables, and short-term loans due to a lack of confirmations. The auditors noted that fixed asset records were incomplete and that certain assets were not physically available, leading to a write-off of ₹13.14 lakh. Additionally, the company wrote off non-saleable raw material and inventory amounting to ₹95.31 lakh. The auditors also pointed out that loans and advances aggregating to ₹160.75 lakh were granted without adequate supporting documentation, raising doubts about their genuineness and recoverability.

Financial Performance

The company's financial results for FY26 show a sharp deterioration compared to the prior year. Revenue from operations dropped to ₹14.93 lakh from ₹281.39 lakh in FY25. Other income, which includes gains from investments and trading activities, stood at ₹211.97 lakh, down from ₹246.63 lakh in the previous year. Total expenditure for the year was ₹244.10 lakh. Consequently, the company reported a basic and diluted loss per share of ₹0.40 for FY26, compared to an earnings per share of ₹2.95 in FY25.

Audit Qualifications and Accounting Issues

Beyond the going concern doubts, the auditors flagged several accounting irregularities. Interest income was recognized only on a receipt basis rather than an accrual basis, which is not in compliance with the Companies Act, 2013. The auditors also expressed an inability to determine the extent of inadmissible or personal expenses charged to the statement of profit and loss under heads such as business promotion, travelling, and fuel. Furthermore, the valuation of finished goods inventory could not be verified due to the absence of regular sales and reliable net realizable value evidence.

Balance Sheet Position

As of March 31, 2026, the company's total assets stood at ₹671.96 lakh, a decrease from ₹713.89 lakh in the previous year. Shareholders' funds were recorded at ₹665.55 lakh, comprising share capital of ₹733.20 lakh and a negative reserve and surplus of ₹67.65 lakh. The balance sheet reflects a significant reduction in tangible fixed assets to ₹31.52 lakh from ₹114.19 lakh, following the write-offs. Cash and cash equivalents increased to ₹361.01 lakh, while short-term loans and advances rose to ₹226.82 lakh.

SK International Export Limited reported a net loss of ₹29.67 crore for the year ended March 31, 2026, compared to a profit of ₹216.53 crore in the previous year. The company's Board of Directors approved the audited financial results for the year and half-year ended March 31, 2026, on May 28, 2026. The statutory auditor, SDA & Associates, highlighted material uncertainty regarding the company's ability to continue as a going concern due to the absence of substantial operational business activities and dependency on speculative trading in equity, F&O, and commodity markets.

Financial Performance

Total revenue for FY26 stood at ₹226.90 lakh, a significant decline from ₹528.02 lakh in FY25. The company recorded a loss before tax of ₹17.19 lakh for the full year, contrasting with a profit before tax of ₹216.94 lakh in the prior year. For the half-year ended March 31, 2026, the company reported a net loss of ₹12.16 lakh. Basic earnings per share (EPS) for FY26 were reported at (0.40), down from 2.95 in the previous year.

Auditor's Observations

The auditor's report identified several key issues impacting the financial statements. The company wrote off assets aggregating to ₹13.14 lakh and inventory aggregating to ₹95.31 lakh during the year. Additionally, the auditor noted that loans and advances aggregating to ₹160.75 lakh were granted without adequate supporting documentation, making it difficult to assess recoverability. The auditor also pointed out that interest income was recognized only on a receipt basis rather than on an accrual basis, which is not in consonance with the Companies Act, 2013.

Asset Position

As of March 31, 2026, the company's total assets stood at ₹671.96 lakh, down from ₹713.89 lakh in the previous year. Cash and cash equivalents increased to ₹361.01 lakh from ₹231.14 lakh, while inventories decreased sharply to ₹8.65 lakh from ₹105.53 lakh. The company's reserves and surplus turned negative at ₹67.65 lakh compared to a negative balance of ₹37.98 lakh in the prior year.