Victoria Enterprises Limited Receives Qualified Audit Review for Q2 FY26 Results
Victoria Enterprises Limited received a qualified audit review for Q2 FY26 results due to overdue 5% Non-Cumulative Redeemable Preference Shares, pending reconciliations of receivables and payables, and outstanding statutory compliance matters with GST authorities, though auditors found no material misstatements in the financial disclosure.
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Victoria Enterprises Limited has received a qualified conclusion from its independent auditors for the quarter ended September 30, 2025, highlighting several areas requiring management attention and resolution.
Audit Review Overview
Mahesh Chandra & Associates, the company's chartered accountants, conducted the review of Victoria Enterprises Limited's standalone unaudited financial results for the second quarter of fiscal year 2026. The review was performed in accordance with Standard on Review Engagements (SRE) 2410 and Indian Accounting Standard 34 for Interim Financial Reporting. The company's board of directors approved these financial results during their meeting held on November 20, 2025.
Key Issues Identified
The auditors identified three significant matters that led to the qualified conclusion:
| Issue Area | Details |
|---|---|
| Preference Shares | 5% Non-Cumulative Redeemable Preference Shares overdue for refund |
| Due Dates | Originally due March 31, 2020, and subsequently each year through September 30, 2025 |
| Current Status | Management negotiating restructuring terms with investors |
| Classification | Recognized as Non-Current Liability per board opinion |
Outstanding Reconciliations
The audit review highlighted pending reconciliations across multiple financial categories. These include receivables and payables, borrowings, loans and advances given, vendor payables, security deposits, and customer advances. The auditors noted that balances are subject to confirmation and consequent reconciliation, with potential adjustments that could have considerable impact on the company's financial position.
The board of directors has established procedural controls to review reconciliation and recoverability of assets and payability of liabilities on a regular basis. These reviews are based on formal and informal agreements with respective parties involved.
Regulatory Compliance Matters
Additionally, the auditors drew attention to balances requiring reconciliation with statutory authorities, particularly the GST department. The financial statements contain balances subject to reconciliation with returns and submissions made to these authorities, with effects on profit, loss, assets, and liabilities currently not ascertainable.
Auditor's Qualified Conclusion
Despite these qualifications, the auditors concluded that except for the effects of the matters described, nothing came to their attention suggesting the financial statements failed to disclose required information or contained material misstatements. The review confirmed compliance with Indian Accounting Standard 34 and other applicable accounting principles generally accepted in India, as well as SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.
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