Geetanjali Credit Auditor Flags Loan Recoverability, Tax Issues
Geetanjali Credit and Capital Ltd's independent auditor, S KBHAVSAR & CO., has issued a review report on the unaudited financial results for the quarter ended June 30, 2026. The report highlights significant concerns regarding the recoverability of loans and advances totaling ₹275.67 Lakhs, as no balance confirmations were received and interest income was recorded despite not adhering to RBI's NPA norms. The company also faces an outstanding income tax demand of ₹529.75 Lakhs, with insufficient documentation provided regarding the pending proceedings. Furthermore, the auditor could not verify the correctness or existence of investments due to a lack of detailed records and physical verification statements, relying instead on management representations.
Key Highlights
- Auditor unable to confirm recoverability of ₹275.67 Lakhs in loans and advances.
- Company not adhering to RBI NPA norms for interest income on outstanding loans.
- ₹529.75 Lakhs outstanding income tax demand with unclear legal status.
- Verification of investments hampered by lack of documentation and physical verification.
- Auditor relied on management representations for investment verification.
Price Impact
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