Punjab communications has announced the appointment of M/s Charanjit Singh Associates, Chartered Accountants, as its statutory auditors for the financial year 2025-26. The appointment follows regulatory requirements and was approved during the company's 44th Annual General Meeting held on December 22, 2025.

Regulatory Compliance and Appointment Details

The appointment was made pursuant to Section 139(5) of the Companies Act, 2013, following a directive from the Comptroller and Auditor General of India (CAG). The CAG, through its letter No./CA.V/COY/PUNJAB, PBCOMM(1)/835, specifically appointed M/s Charanjit Singh Associates as the statutory auditors for Punjab Communications Limited.

About the Appointed Audit Firm

M/s Charanjit Singh Associates is a partnership firm registered with the Institute of Chartered Accountants of India, holding Firm Registration No. 015328N. The firm operates from its office located at Third Floor, Space C, Suryakiran Building, Mall Road, Civil Lines, Ludhiana-141001, Punjab.

The audit firm brings comprehensive expertise across multiple areas of financial and compliance services:

• Corporate Audits: Statutory audit, tax audit, and internal audit services
• Banking Services: Bank audits including concurrent audit and stock audit
• Compliance Services: Accounting compliance reporting, GST advisory, and tax compliance
• Training Services: Compliance training and other allied services

Professional Standing and Affiliations

Due to their extensive experience and established reputation in the field, M/s Charanjit Singh Associates has been affiliated and empanelled with reputed organizations and statutory bodies, including the Comptroller and Auditor General of India. This empanelment demonstrates the firm's credibility and expertise in handling statutory audit requirements for government and public sector entities.

Terms of Engagement

The appointment is effective from the conclusion of the 44th Annual General Meeting and will continue until the conclusion of the next Annual General Meeting. The statutory auditors will conduct the audit of financial statements for FY2025-26 on terms and conditions as provided in the CAG letter issued in this regard.

The company has fulfilled its disclosure obligations under Regulation 30 read with Para A of Part A of Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, by informing the Bombay Stock Exchange about this appointment on December 23, 2025.

Punjab Communications Limited (Puncom) has reported a turnaround in its financial performance for the quarter ended September 30, 2025, posting a net profit despite auditor concerns over inventory valuation methods.

Financial Highlights

Puncom reported a net profit of ₹28.43 lacs for Q2 FY2026, compared to a loss of ₹100.44 lacs in the same quarter last year. The company's revenue from operations stood at ₹816.60 lacs for the quarter.

Operational Performance

The company's total revenue, including other income, increased to ₹1,106.24 lacs in Q2 FY2026 from ₹753.80 lacs in the corresponding quarter of the previous year. This growth may be attributed to improved operational efficiency and market conditions.

Auditor Concerns

Despite the positive financial results, the company's auditors, Charanjit Singh & Associates, have raised significant concerns in their limited review report:

1. Inventory Valuation: The auditors noted that the company's inventory valuation method does not comply with the stated accounting policy of using the FIFO (First-In-First-Out) method. Instead, raw materials are valued at the "last purchase rate," which is not in compliance with Ind AS 2 on Inventories.

2. Work in Process and Finished Sub-assemblies: The auditors pointed out discrepancies in the valuation of work in process and finished sub-assemblies, which are currently valued only at material cost, contrary to the company's stated policies.

3. Unbilled Revenue: The report highlighted a lack of proper disclosure regarding unbilled revenue in the financial statements.

Management Response

The company's management has acknowledged these concerns and stated that cost experts have been engaged to assess the inventory valuation process. For the fiscal year 2024-25, the company has initiated a process with experts for inventory valuation in line with normal industry practices.

Outlook

While Puncom has shown a significant improvement in its financial performance, the auditor's concerns raise questions about the company's accounting practices. Investors and stakeholders may need to closely monitor how the company addresses these issues in the coming quarters.

The company's ability to maintain its profitability while resolving the auditor's concerns will be crucial for building investor confidence and ensuring long-term financial stability.