Kridhan Infra Limited , a prominent infrastructure company, has approved its financial results for the second quarter of fiscal year 2026 following significant changes in its audit process.

Key Developments

1. New Statutory Auditor: The company's board has appointed M/s. Jignesh Savla & Associates as the new statutory auditor following the demise of the previous auditor.

2. Financial Results Approval: The board has approved both standalone and consolidated unaudited financial results for the quarter and half-year ended September 30, 2025.

3. Revenue Recovery: Kridhan Infra reported revenue from operations of Rs 125.00 lakhs in Q2 FY26, compared to nil in the corresponding previous quarter.

4. Going Concern Uncertainty: The auditors have highlighted a material uncertainty about the company's ability to continue as a going concern, citing accumulated losses and fully eroded net worth.

Financial Performance

Auditor's Observations

The newly appointed auditors, M/s. Jignesh Savla & Associates, have raised concerns about Kridhan Infra's financial stability:

1. Material Uncertainty: The auditors have pointed out a material uncertainty related to the company's status as a going concern.

2. Accumulated Losses: The company has reported significant accumulated losses.

3. Eroded Net Worth: Kridhan Infra's net worth has been fully eroded, raising questions about its financial health.

Implications

While the revenue recovery in Q2 FY26 is a positive sign for Kridhan Infra, the auditor's observations highlight significant financial challenges facing the company. The material uncertainty about its ability to continue as a going concern may have implications for investor confidence and the company's future operations.

Stakeholders will likely be closely monitoring Kridhan Infra's strategies to address its accumulated losses and restore its net worth. The company's ability to sustain and grow its revenue in the coming quarters will be crucial in overcoming these financial hurdles.

As Kridhan Infra navigates through this challenging period, transparent communication with shareholders and concrete steps towards financial recovery will be essential in rebuilding market confidence.

Kridhan Infra Limited has announced a significant development that will impact its upcoming financial reporting. The company's statutory auditor, CA Bakulesh R Kotecha, proprietor of M/s. B.R. Kotecha & Co., passed away on November 5, 2025, leading to potential delays in the company's financial reporting process.

Impact on Financial Reporting

Due to this unexpected event, Kridhan Infra faces challenges in obtaining a Limited Review Report for its quarterly and half-year results ended September 30, 2025. The company has informed that it will:

• Publish the financial results by November 14, 2025, without the statutory auditor's Limited Review Report
• Appoint a new statutory auditor to fill the casual vacancy at the earliest

Regulatory Compliance

In compliance with Regulation 30 of the SEBI (LODR) Regulations, 2015, Kridhan Infra has notified both the BSE and NSE about this development. The company's Managing Director, Gautam Joginderlal Suri, signed the official communication to the stock exchanges.

Auditor Details and Cessation

Implications and Next Steps

This situation presents a unique challenge for Kridhan Infra, as the SEBI circular No. CIR/CFD/CMD1/114/2019 dated October 18, 2019, requires the same auditor who signed the Limited Review Reports for the first three quarters to sign the report for the last quarter and the annual audit report.

The company's Board of Directors will need to act swiftly to:

1. Appoint a new statutory auditor to fill the casual vacancy
2. Ensure the new auditor can audit the financials for the quarter and half-year ended September 30, 2025
3. Publish the financial results within the regulatory deadline

Investors and stakeholders of Kridhan Infra should be aware that the upcoming financial results may be published without a Limited Review Report, which is an unusual circumstance caused by these unforeseen events.