Reliance Infrastructure auditor flags ₹4,706 cr in unverifiable assets
Auditor Chaturvedi & Shah issued a disclaimer of opinion on FY26 results, citing ongoing regulatory probes and asset recoverability issues.
— 2 earlier stories on Reliance Infrastructure Ltd. →What's new
- Auditor issued a disclaimer of opinion on FY26 results.
- Board approved a plan to raise up to ₹3,000 cr via equity or convertible instruments.
- Vijesh Babu Thota named CEO; Asheesh Chaturvedi named CFO.
Why this matters
A disclaimer of opinion is the most severe warning an auditor can issue. The financial outlook is uncertain given that the proposed fundraise exceeds the company's current market valuation.
What we're watching
- The outcome of ongoing investigations by the ED, SEBI, and SFIO.
- Details on the proposed ₹3,000 cr fundraise and potential dilution.
- Any further disclosures regarding the recoverability of the ₹4,706 cr in economic rights.
The full read
Reliance Infrastructure closed FY26 under a cloud of uncertainty. Auditor Chaturvedi & Shah LLP issued a disclaimer of opinion on the company's consolidated results, stating an inability to verify the recoverability of ₹4,706 crore in economic rights. The auditor also noted ongoing investigations by the ED, SEBI, and SFIO, as well as going-concern risks at key subsidiaries. The board approved a plan to raise up to ₹3,000 crore through equity or convertible instruments. This proposed raise is larger than the company's current market capitalization of ₹2,767 crore. The company also named Vijesh Babu Thota as CEO and Asheesh Chaturvedi as CFO. The combination of a disclaimer of opinion and a massive capital-raising plan creates a volatile environment for shareholders.
Questions answered
- Why did the auditor issue a disclaimer of opinion?
- Chaturvedi & Shah LLP stated they could not verify the recoverability of ₹4,706 crore in economic rights. They also cited ongoing investigations by the ED, SEBI, and SFIO, alongside going-concern uncertainties at key subsidiaries.
- How much capital does the company plan to raise?
- The board approved a proposal to raise up to ₹3,000 crore through equity or convertible instruments. This amount exceeds the company's current market capitalization of ₹2,767 crore.
- Who are the new leadership appointments?
- The board appointed Vijesh Babu Thota as the new chief executive officer and Asheesh Chaturvedi as the chief financial officer.
- Which regulatory bodies are investigating the company?
- The auditor noted active investigations by the Enforcement Directorate (ED), the Securities and Exchange Board of India (SEBI), and the Serious Fraud Investigation Office (SFIO).
Story so far
All notes on RELINFRA →- Today · 8:50 PM IST Reliance Infrastructure auditor flags ₹4,706 cr in unverifiable assets
- today Reliance Infrastructure auditor issues disclaimer on ₹4,706 cr assets
- today Reliance Infrastructure auditor issues disclaimer on ₹4,706 cr in assets