Sanchay Finvest auditor flags missed payments and internal control gaps
The company posted a ₹1.41 crore loss for FY26 while failing to redeem preference shares that matured in October 2024.
— 2 earlier stories on Sanchay Finvest Ltd. →What's new
- Statutory auditor issued a qualified opinion due to unpaid preference shares and dividends.
- NSE imposed a ₹47.88 lakh penalty on the company.
- Internal audit report flagged systemic failures in reconciling advances and deposits.
Why this matters
A qualified audit opinion combined with missed debt obligations signals severe liquidity stress. The systemic failure to reconcile basic deposits suggests governance is failing at a fundamental level.
What we're watching
- Any plan to settle the overdue preference shares and dividends.
- The impact of the ₹47.88 lakh NSE penalty on working capital.
- Whether the new internal auditor can address the reconciliation deficiencies.
The full read
Sanchay Finvest ended FY26 with a net loss of ₹1.41 crore and a qualified audit opinion. The company failed to redeem 12% non-cumulative preference shares that matured in October 2024, leaving dividends unpaid.
It is a mess.
Beyond the balance sheet, the National Stock Exchange hit the company with a ₹47.88 lakh penalty, while the statutory auditor flagged systemic internal control failures regarding the reconciliation of advances and deposits. These disclosures reveal a company struggling with both liquidity and basic governance, and the appointment of M/s S K B J P & Co. as the new internal auditor does little to mask the underlying financial instability that now threatens the firm's ability to operate effectively in the coming fiscal year.
Questions answered
- Why did the statutory auditor qualify the financial results?
- The auditor flagged the company's failure to redeem 12% non-cumulative preference shares and pay associated dividends after they matured in October 2024.
- What is the status of the penalty from the National Stock Exchange?
- The company faces a penalty of ₹47.88 lakh from the NSE, which is now a recorded liability.
- What internal control issues were identified?
- The audit revealed systemic deficiencies in the reconciliation of advances and deposits, indicating a lack of oversight in core financial operations.
- Did the company make any changes to its audit team?
- Yes, the company accepted the resignation of its secretarial auditor and appointed M/s S K B J P & Co. as the new internal auditor for the coming fiscal year.
Story so far
All notes on SANCF →- 29 May 2026 · 12:13 PM IST Sanchay Finvest auditor flags missed payments and internal control gaps
- 1d ago Sanchay Finvest auditor flags unpaid dividends and NSE penalties
- 1d ago Sanchay Finvest auditor flags unpaid dividends and NSE penalties