Virtual Global Education disclosed audit qualifications for the financial year ended March 31, 2026, citing fraudulent activities by its former CFO and insufficient documentation for significant advances and expenses. The auditors identified a misappropriation of ₹88,17,931 and noted that the financial statements do not present a true and fair view until these issues are resolved. The company reported a net loss of ₹33.89 lakh for the standalone results for the year ended March 31, 2026, compared to a loss of ₹38.33 lakh in the previous year.

Audit Qualifications and Financial Impact

The statutory auditor, Asha & Associates, highlighted that the former Chief Financial Officer (CFO) and Director, Mr. Ankit Sharma, carried out fraudulent activities involving unauthorized transactions and misappropriation of funds. A special audit determined that ₹88,17,931 was misappropriated during the financial years 2024-25 through fictitious payments and unsupported expenses. The company has filed a complaint (Complaint no. 801012509075 dated 13.02.2025) but has not recovered the amount or made a provision for the loss. Consequently, the financial statements require an impairment and provision of ₹88,17,931.

Standalone Financial Results (In ₹ lakhs)

Lack of Documentation for Advances and Expenses

The auditors raised concerns regarding the company's inability to provide documentation for several significant transactions. An advance of ₹5,32,20,571 given for the purchase of land in Gurugram lacked proper supporting documents. Additionally, the company provided loans and advances totaling ₹20,19,00,000 without disclosing the nature of the advances or providing necessary documentation. The auditors stated they could not determine if these transactions were recorded appropriately due to the absence of sufficient audit evidence.

Furthermore, the company paid ₹6,34,88,996 against training expenses payable without offering adequate documentary evidence or satisfactory explanations. The management acknowledged these issues and stated it would take steps to comply and provide the necessary information.

Warrant Allotment and Auditor Comments

The report also noted that the company allotted 14,25,00,000 fully convertible warrants of ₹1 each on a preferential basis to non-promoters following a shareholder resolution on September 10, 2024. While 25% of the warrant issue price was received in the previous year and the balance 75% was received during the current year, the auditors found insufficient evidence to verify that the funds were utilized as per the SEBI-approved purpose. The management is currently collating the required documents to address this qualification.

Board Appointments and Committee Reconstitution

The Board of Directors, at its meeting held on May 27, 2026, approved the audited financial results and appointed new directors. Mr. Prem Gupta was appointed as Whole-Time Director, while Mrs. Payal Sharma and Mr. Rohan Agarwal were appointed as Non-Executive Independent Directors. The Board also reconstituted the Audit Committee, Nomination & Remuneration Committee, and Stakeholders Relationship Committee with the new members. M/s Chandni Singla & Associates were appointed as Internal Auditor for FY 2026-27.

Newspaper Publication

In compliance with Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company published the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, in the Financial Express (English) and Jansatta (Hindi) on May 28, 2026.

Virtual Global Education Limited appointed M/s Chandni Singla & Associates as its Internal Auditor for the financial year 2026-27. The Board of Directors approved the appointment at its meeting held on May 27, 2026. The firm, holding FRN 031994N, will undertake the internal audit functions for the company.

The appointment was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosures regarding the appointment were provided in accordance with Para A (7) of Part A of Schedule III of the Listing Regulations and the relevant SEBI Master Circular.

M/s Chandni Singla & Associates is a firm of chartered accountants, corporate financial advisors, and tax consultants. The firm's profile indicates experience in accounts outsourcing, auditing, company formation, business taxation, corporate compliance, and transfer pricing, among other areas.

There are no disclosures of relationship between the directors of the company and the newly appointed internal auditor. The intimation was submitted to BSE Limited on May 27, 2026, by Director Anubha Chauhan.