Ganon Products Limited has reported a significant increase in net profit for the second quarter ended September 30, 2025, despite auditors raising red flags over outstanding receivables and statutory dues.

Financial Performance

The company's unaudited financial results for Q2 FY2026 show:

The company's performance shows a substantial improvement in profitability compared to the previous quarter. However, the year-on-year comparison for revenue indicates a significant decline from ₹692.90 in Q2 FY2025 to ₹121.40 in Q2 FY2026.

Auditor Concerns

Despite the profit surge, auditors have highlighted several areas of concern:

1. Outstanding Receivables: Trade receivables of ₹79.47 are outstanding, including:

   • ₹18.97 from Ruchi Cotton Fibers (outstanding since November 2024)
   • ₹60.51 from Mangalmurty Cotspin (outstanding since March 2024)

2. Statutory Dues: The company has defaulted on statutory dues totaling over ₹25, with some payments pending since March 2023.

3. Trade Payables: A substantial increase in trade payables from ₹953.11 in the previous year to ₹41,267.00 (as per the news data, though this figure seems unusually high and may require verification).

4. Interest-Free Loans: Concerns were raised about interest-free loans advanced by the company.

Balance Sheet Highlights

The company's balance sheet as of September 30, 2025, shows:

The significant increase in total assets and liabilities between March and September 2025 warrants attention, particularly given the auditors' concerns.

Management Response

The company's management has not provided specific comments on the auditors' concerns in the available data. Investors and stakeholders may seek clarification on the steps being taken to address these issues, particularly regarding the recovery of outstanding receivables and the settlement of statutory dues.

Conclusion

While Ganon Products has reported a substantial increase in quarterly profit, the auditors' concerns raise questions about the company's financial health and operational management. The significant discrepancies in receivables, payables, and statutory dues compliance suggest that investors should approach the company's financial results with caution and seek further clarification from management on these issues.

Ganon Products Limited has announced the approval of its unaudited financial results for the first quarter of the fiscal year 2026. The company's Board of Directors convened on August 13, 2025, to review and approve the financial statements for the quarter ended June 30, 2025.

Board Meeting Details

The board meeting, which commenced at 12:30 PM and concluded at 4:15 PM, addressed several key points:

1. Approval of unaudited financial results for Q1 FY2026
2. Review and approval of the Limited Review Report from the company's statutory auditor
3. Disclosure of financial indebtedness

Financial Position

In a notable revelation, Ganon Products Limited reported zero outstanding amounts across various financial categories:

This disclosure indicates that the company currently maintains a debt-free status, with no outstanding loans, revolving facilities, or unlisted debt securities.

Regulatory Compliance

The company's actions align with the regulatory requirements set forth by the Securities and Exchange Board of India (SEBI). In compliance with Regulations 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Ganon Products Limited promptly informed the BSE Limited about the board meeting outcome and the approval of the financial results.

Management Statement

Ravindra Haribhau Gopale, serving as the Whole-time Director and CFO of Ganon Products Limited, signed the regulatory submission to BSE Limited. His digital signature on the documents, dated August 13, 2025, at 16:28:56 and 16:29:52, respectively, confirms the authenticity of the submitted information.

While the specific financial figures for the quarter were not disclosed in the available information, the approval of the unaudited results and the Limited Review Report suggests that the company has completed its internal review process for the quarter.