Shyamkamal's profit was fake: auditor flags ₹49 lakh loss
A reclassification from FVTPL to FVTOCI turned a ₹48.93 lakh loss into a ₹23.25 lakh profit. The qualified opinion also notes unverified bank balances and audit trail gaps.
— 2 earlier stories on Shyamkamal Investments Ltd. →What's new
- Audited FY26 net profit of ₹23.25 lakhs is entirely due to reclassification; without it, loss of ₹48.93 lakhs.
- Qualified audit opinion also raises concerns on unverified bank balances and audit trail implementation.
- Profit declined 54% YoY from ₹50.32 lakhs; the qualification makes this more than a routine earnings miss.
Why it matters
The reclassification is a governance red flag. It suggests the company is using accounting discretion to manufacture profit. For a nano-cap investment company, the audited opinion essentially says the reported earnings are not real—investors should discount the headline number entirely.
What we're watching
- Whether the company issues a clarification or restatement.
- Any regulatory action from exchange or auditor regarding the unverified balances.
- The stock's reaction given the qualification's severity for a nano-cap.
The full read
Shyamkamal Investments reported a net profit of ₹23.25 lakhs for FY26, down from ₹50.32 lakhs a year ago. That headline number, however, is entirely misleading. The auditor's qualified opinion reveals that a reclassification of equity investments from fair value through profit or loss (FVTPL) to fair value through other comprehensive income (FVTOCI) was the sole reason the company recorded any profit at all. Stripping out that reclassification, the company would have posted a net loss of ₹48.93 lakhs. Adding to concerns, the auditor also flagged unverified bank balances and gaps in the audit trail. For a nano-cap investment company, this is a serious governance signal: the reported earnings are not a reflection of underlying business performance. Shareholders should treat the profit number with extreme caution.