Reliance Infrastructure auditor issues disclaimer on ₹4,706 cr in assets
The auditor flagged going-concern risks and multiple regulatory probes while the company seeks to raise ₹3,000 crore in fresh capital.
— 2 earlier stories on Reliance Infrastructure Ltd. →What's new
- Auditor Chaturvedi & Shah LLP issued a disclaimer of opinion on FY26 results.
- The board approved a plan to raise up to ₹3,000 crore via QIP or FPO.
- Reliance Infrastructure appointed Vijesh Babu Thota as CEO and Asheesh Chaturvedi as CFO.
Why this matters
A disclaimer of opinion is the most severe warning an auditor can issue, effectively stating they cannot verify the company's financial health. With the proposed capital raise exceeding the company's current market capitalization, the path forward for existing shareholders is highly uncertain.
What we're watching
- Shareholder approval for the proposed ₹3,000 crore fundraise.
- Updates on the ongoing investigations by the ED, SEBI, and SFIO.
- The ability of toll-road and metro subsidiaries to maintain operations.
The full read
Reliance Infrastructure reported a net profit of ₹2,900 crore for FY26. The headline figure is hollow.
Auditor Chaturvedi & Shah LLP issued a disclaimer of opinion, citing an inability to verify ₹4,706 crore in economic rights while flagging going-concern risks at the company's toll-road and metro subsidiaries alongside active investigations by the ED, SEBI, and SFIO. Despite these warnings, the board approved a plan to raise up to ₹3,000 crore through a QIP or FPO. This proposed raise is larger than the company's ₹2,767 crore market capitalization. The company also installed a new CEO, Vijesh Babu Thota, and a new CFO, Asheesh Chaturvedi. The disclaimer of opinion signals a total breakdown in financial verification, leaving the company's true asset position in doubt. The next test is whether shareholders approve the massive capital injection.
Questions answered
- Why did the auditor issue a disclaimer of opinion?
- Chaturvedi & Shah LLP could not verify the recoverability of ₹4,706 crore in economic rights. They also cited ongoing regulatory probes and going-concern risks at several key subsidiaries.
- How much capital does the company plan to raise?
- The board approved a proposal to raise up to ₹3,000 crore through a QIP or FPO. This amount exceeds the company's current market capitalization of ₹2,767 crore.
- Which regulatory bodies are investigating the company?
- The company faces ongoing probes from the Enforcement Directorate (ED), SEBI, and the Serious Fraud Investigation Office (SFIO).
- Who are the new leadership appointments?
- The company appointed Vijesh Babu Thota as the new CEO and Asheesh Chaturvedi as the new CFO.
Story so far
All notes on RELINFRA →- Today · 8:47 PM IST Reliance Infrastructure auditor issues disclaimer on ₹4,706 cr in assets
- 1d ago Reliance Infrastructure auditor flags ₹4,706 cr in unverifiable assets
- 1d ago Reliance Infrastructure auditor issues disclaimer on ₹4,706 cr in assets