IMP Powers517571Auditor qualification or

Board approves Q2 and H1 results; auditor's review opinion is qualified on 7 counts

Board met on November 3, 2026 and approved the unaudited standalone and consolidated results for the second quarter and six months ended September 30, 2026.

By ScoutQuest · Tue 3 Nov 2026, 5:40 PM IST · 3 min read

Net Profit/(Loss) after tax Q2 (Rs. Lakhs): 767.71 for Q2, against (203.98) a year earlier
Total Equity (Rs. Lakhs): (26,296.90)
Auditor review opinion: qualified on 7 counts

What the board approved

IMP Powers' board met on Tuesday, November 3, 2026, from 2:30 p.m. to 3:32 p.m., and approved the unaudited standalone and consolidated financial results for the second quarter and six months ended September 30, 2026. The results were reviewed by the audit committee and by the statutory auditors, B J S and Associates, Chartered Accountants.

The auditor's conclusion: qualified

A qualified opinion means the auditor says the numbers are broadly presented correctly except for specific matters it lists. Here the review report on the standalone results is qualified on seven points, and the review report on the consolidated results is also qualified, with the auditor relying on another auditor for the subsidiary's figures.

The seven points behind the qualification

Trade receivables: a substantial portion has been outstanding since before the Corporate Insolvency Resolution Process (CIRP) began and for more than three years, and no expected credit loss has been recognised. The auditor says receivables may be overstated and loss understated; the impact has not been determined.
Bank balances and other current assets: independent confirmations and supporting documentation were not available, and some balances are old and unreconciled.
No impairment assessment of assets as at September 30, 2026, despite prolonged suspension of production under CIRP and the subsequent liquidation process.
Sale proceeds: the e-auction concluded and Rs. 78 Crore (amount of bid) was paid; the liquidator issued the sale certificate to Electrify Energy Pvt Ltd in consortium with Mr. Rakesh R Shah, and NCLT granted relief to the successful auction purchaser and new management on 5/11/2024. NCLAT dismissed the appeals and empowered NCLT to decide on distribution; STCI Finance Limited has challenged that order in the Supreme Court. The liquidator began distributing the proceeds during the quarter, but the distribution remains incomplete, so the consequential write-back/write-off has not been given effect in the books.
Deferred tax expense/income and the related deferred tax balances have not been recognised.
Investment in subsidiary IMP Energy Limited is carried at cost of Rs. 77.48 Lakhs; the subsidiary has negative net worth and no operating activity for a prolonged period, and no impairment assessment was done.
No actuarial valuation of gratuity and leave encashment obligations as at September 30, 2026.

Standalone results, quarter and half year (Rs. in Lakhs)

'Revenue from operations': 3,730.22 for Q2, against 72.51 a year earlier; 7,608.65 for the half year, against 243.69.
'Total expenses': 2,788.40 for Q2.
'Finance costs': 174.11 for Q2 and 231.53 for the half year.
'Net Profit/(Loss) after tax': 767.71 for Q2, against (203.98) a year earlier; 689.50 for the half year, against (403.68).
'Basic EPS Rs.' and 'Diluted EPS Rs.': 8.89 for Q2 against (2.36); 7.98 for the half year against (4.67).
A note to the results states that provision for interest and finance charges on the outstanding finance liability has not been provided, except on fresh loans taken after the change in management.

Balance sheet shape (standalone, Rs. in Lakhs)

'Total Equity' is negative at (26,296.90) as on September 30, 2026, compared with (26,986.39) as on March 31, 2026.
Current borrowings: 23,857.95; trade receivables: 5,181.45; cash and cash equivalents: 230.62.
Net cash from operating activities for the half year: 2,354.06.
Paid-up equity share capital: 863.66, face value Rs. 10 per share.

Why the accounts are prepared on a going-concern basis

A note explains the results are prepared on a going concern basis considering that the Company has received Rs. 78 Cr from the successful bidder for sale of the company as a going concern under the liquidation process regulations.

Subsidiary in the consolidated review

The auditor of the consolidated results did not audit the subsidiary's interim results and relied on other auditors; those results reflect total revenue of Rs. Nil lakhs and total profit/(loss) of Rs. (1.39) lakhs for the quarter and half year ended September 30, 2026.

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