Shree Rajivlochan auditors disclaim on going concern. The company says they didn't.
A nano-cap with no revenue and a disposed plant got a disclaimer opinion. Its own filing claims the auditors issued a clean one.
— 1 earlier story on Shree Rajivlochan Oil Extraction Ltd. →What's new
- Shree Rajivlochan reported zero revenue from operations for FY26.
- Auditors issued a 'Disclaimer of Opinion,' questioning the company's ability to continue as a going concern.
- The company's formal filing then claimed the auditors issued an 'unmodified opinion.'
Why this matters
The company and its auditors are telling two different stories. A disclaimer opinion is a severe audit outcome, often preceding insolvency proceedings. That management would misrepresent it in the same filing is a major governance red flag, not a clerical error.
What we're watching
- Any regulatory response to the contradictory claims in the annual report.
- Whether the company has any plan to restart operations after disposing its plant.
- The auditor's next move if the discrepancy is not corrected.
The full read
Shree Rajivlochan has no operations, no revenue, and a ₹9 crore market cap. For FY26 it reported ₹6.87 lacs in profit, all from passive income. The statutory auditors looked at this and issued a Disclaimer of Opinion, the most severe form of audit flag, saying they could not verify if the company can continue as a going concern after disposing its plant. The company then did something else. In the same annual filing, it told shareholders the auditors had issued an unmodified opinion. That's a clean report. The two statements are irreconcilable. This isn't a matter of interpretation. One is a disclaimer, the other claims a clean bill of health. For a dormant company with a precarious balance sheet, misrepresenting the audit result is the kind of internal control failure that makes the going-concern question more urgent, not less.
Questions answered
- What did the auditors actually say about Shree Rajivlochan?
- The statutory auditors issued a 'Disclaimer of Opinion,' stating they could not obtain sufficient evidence on the company's ability to continue as a going concern, citing the disposal of its principal manufacturing plant.
- How did the company describe the same audit opinion?
- In its formal declaration, the company claimed the auditors issued an 'unmodified opinion,' which is a clean, unqualified report. This directly contradicts the actual disclaimer.
- Where did the company's profit come from?
- The ₹6.87 lacs net profit for FY26 came entirely from non-operational sources, such as interest. The company reported zero revenue from operations.
- What is the scale of this company?
- It is a nano-cap with a market capitalisation of ₹9 crore, having disposed of its primary manufacturing plant and with no active business operations.
Story so far
All notes on SHRAJOI →- 29 May 2026 · 6:28 PM IST Shree Rajivlochan auditors disclaim on going concern. The company says they didn't.
- 1d ago Rajivlochan auditor flags going-concern doubts. Management claims it didn't.