Vaxfab's auditor disowns the books. Both standalone and consolidated.
Chandabhoy & Jassoobhoy issued a disclaimer of opinion on Vaxfab's FY26 results, citing broken bookkeeping, missing balance confirmations, and non-compliance. The numbers themselves become unreliable.
What's new
- Auditor Chandabhoy & Jassoobhoy gave a disclaimer of opinion on Vaxfab's standalone and consolidated FY26 results.
- The disclaimer cites inadequate book maintenance, missing debtor/creditor balance confirmations, and MSMED Act non-compliance.
- Standalone PAT was ₹3.64 cr (up from ₹0.58 cr), but consolidated showed a net loss of ₹4.63 cr.
Why this matters
A disclaimer of opinion is the most severe audit outcome short of refusal to audit. The auditor isn't just flagging errors; it's saying it cannot verify the numbers at all. For a ₹126 crore company, this effectively removes the financial statements from use as a reliable basis for investment decisions.
What we're watching
- Whether SEBI or the exchanges seek a management response or special audit.
- Any follow-up from the auditor on the specific nature of the missing confirmations.
- Impact on Vaxfab's ability to raise capital or meet regulatory filing norms.
The full read
Vaxfab Enterprises reported a standalone profit of ₹3.64 crore for FY26, up from ₹0.58 crore. The consolidated statements showed a loss of ₹4.63 crore. The numbers matter less than what the auditor said about them. Chandabhoy & Jassoobhoy issued a disclaimer of opinion on both sets of results. The auditor couldn't verify the books because Vaxfab didn't maintain them properly, didn't get balance confirmations from its own debtors and creditors, and failed to comply with MSMED Act disclosures. For a ₹126 crore company, a disclaimer isn't a technical footnote. It's a statement that the financials cannot be trusted as a basis for any decision. The standalone profit and consolidated loss both become footnotes to the auditor's refusal to vouch for the records.
Questions answered
- What did the auditor actually say about Vaxfab's FY26 results?
- Chandabhoy & Jassoobhoy issued a disclaimer of opinion on both standalone and consolidated statements. This means they could not obtain enough evidence to verify the completeness and accuracy of the company's transactions and balances.
- What were the main problems the auditor identified?
- The auditor cited inadequate maintenance of books of account, a lack of balance confirmations from debtors and creditors, and non-compliance with MSMED Act disclosure requirements. These are fundamental breakdowns in record-keeping.
- How do the reported profits compare to the auditor's findings?
- Vaxfab reported a standalone net profit of ₹3.64 crore, up from ₹0.58 crore. The consolidated results showed a loss of ₹4.63 crore. However, the disclaimer means these figures cannot be relied upon.
- What is the significance of a disclaimer of opinion for a nano-cap?
- For a ₹126 crore market-cap company, a disclaimer signals potential material misstatements or fraud risk. It undermines any investment thesis built on the reported numbers and raises going-concern questions.