Mihika Industries revenue drops 84% as auditor flags internal controls
Revenue fell to ₹44.69 lakhs from ₹277.77 lakhs in FY26. The auditor flagged missing loan agreements and a year-long vacancy in the internal audit role.
— 1 earlier story on Mihika Industries Ltd. →What's new
- Revenue plummeted 84% year-on-year to ₹44.69 lakhs.
- Net profit shrank to ₹1.62 lakhs from ₹5.46 lakhs.
- Auditor S K Bhavsar & Co flagged missing balance confirmations and unverified loans.
Why this matters
The auditor's report reveals a breakdown in basic financial oversight at this ₹13 crore market-cap firm. With no internal auditor for the entire year and missing documentation for loans, the company's financial reporting lacks reliability.
What we're watching
- Whether the company appoints an internal auditor for the current fiscal year.
- Any clarification regarding the unverified loans.
- Stability of trade receivables and payables in upcoming quarterly filings.
The full read
Mihika Industries closed FY26 with a sharp contraction in its business. Revenue fell to ₹44.69 lakhs from ₹277.77 lakhs the previous year, while net profit dropped to ₹1.62 lakhs from ₹5.46 lakhs.
Governance is failing.
The auditor's report paints a concerning picture of the company's internal controls. S K Bhavsar & Co reported that Mihika operated without an internal auditor for the entire year, and they could not verify trade receivables or payables due to a lack of balance confirmations. Management also failed to provide supporting agreements for loans granted during the year. These governance gaps raise serious questions about the reliability of the company's financial reporting. For a firm with a market cap of only ₹13 crore, these oversight failures are difficult to overlook. The burden of proof now rests with management.
Questions answered
- How did Mihika Industries perform in FY26?
- The company saw a sharp business contraction, with revenue falling to ₹44.69 lakhs from ₹277.77 lakhs in the prior year. Net profit also declined to ₹1.62 lakhs from ₹5.46 lakhs.
- What specific governance issues did the auditor highlight?
- S K Bhavsar & Co noted that the company operated without an internal auditor for the entire year. The auditor also could not verify certain trade receivables, payables, or loan agreements.
- Did the auditor issue a qualified opinion?
- No, the auditor issued an unmodified opinion. They included emphasis of matter paragraphs to flag material weaknesses in internal controls.
- What is the scale of Mihika Industries?
- It is a nano-cap entity with a market capitalization of approximately ₹13 crore.
Story so far
All notes on MIHIKA →- 27 May 2026 · 7:12 PM IST Mihika Industries revenue drops 84% as auditor flags internal controls
- today Mihika Industries revenue collapses 92% as audit flags internal failures