Globus Power Generation's audit record is a study in contradiction: six consecutive clean opinions, yet six consecutive going-concern warnings and recurring cash losses. Shareholders have repeatedly approved large related-party and lending authorities, but the company's own filings disclose no actual transaction values, leaving the extent of self-dealing unverifiable. The profit line is driven by a single provision that is created, reversed, and re-created, while the company's governance disclosures contradict penalties recorded in its own annual report.
Key findings
- Clean opinions, but going-concern warnings and cash losses
Major- Auditors issued unqualified opinions for every year from FY2020-21 through FY2025-26, yet each report carried a Material Uncertainty Related to Going Concern paragraph. In FY2025-26, the company reported a net loss of ₹12.81 lakhs, and excluding non-cash items of ₹38.25 lakhs, a cash loss of ₹51.06 lakhs. CARO clauses returned clean findings on fraud, wilful default, benami, and fund diversion, though disputed income tax demands of ₹28.41 lakhs and ₹1.06 crore remain pending. - Profit swings hinge on one provision-for-doubtful-advances line
Major- Reported profit swung from a ₹3.54 crore profit in FY2024-25 to a ₹12.81 lakh loss in FY2025-26, driven by a single exceptional item: a ₹4.03 crore "reversal of provisions for doubtful advances" in FY2024-25, followed by a ₹38.25 lakh provision in FY2025-26. The company's own ratio explanations contradict each other, attributing a ROCE decline to the provision's creation in one year and its increase in another. - BSE penalties contradict the company's own "no penalty" disclosures
Major- BSE imposed penalties for the failure to appoint a Company Secretary as Compliance Officer and for delays in intimating board meetings, as recorded in the FY2025-26 Secretarial Audit Report. The same annual report's Corporate Governance section states there was "no non-compliance, penalty or stricture" in the last three financial years. The company also defaulted on filling the Company Secretary vacancy beyond the prescribed six-month period. - Promoter-related director re-appointed with unchanged base salary; board churn continues
Minor- Mr. Abhay Khanna, a promoter-related Whole-Time Director holding nil shares as of 31st March 2026, has been re-appointed for a five-year term proposed from 11th August 2026. His past remuneration was ₹12 lakh per annum (maximum) with no increase in the last three years, and the proposed remuneration is ₹1,00,000 per month (maximum) with increases as decided by the Board and additional benefits. The board has cycled through multiple independent directors and company secretaries, including a Company Secretary vacancy of over eight months spanning parts of FY2024-25 and FY2025-26. - Auditor appointments routine and low-cost, no resignations
Clean- Statutory auditor fees were ₹70,000 in FY2025-26. D R & Associates was appointed for a five-year term at the 38th AGM, while Padam Dinesh & Co served a four-year term. No resignation of statutory auditors was disclosed in FY2023-24.
What to watch
- 41st AGM vote on Transtech RPT. The outcome of the vote on the ₹10-crore RPT approval with Transtech Green Power for FY2026-27, noticed on 31st August 2026.
- Director re-appointment vote. Mr. Abhay Khanna's five-year term from 11th August 2026 is subject to member approval by Special Resolution at the 41st AGM.
- Provision for doubtful advances. Whether the FY2026-27 annual report again reverses, re-creates, or adjusts this line, and whether it explains the underlying advances.
- Going concern note. Whether the FY2026-27 report continues to show cash losses after excluding non-cash add-backs, following the ₹48.40 lakhs cash loss disclosed for FY2024-25.
- BSE penalty details. No penalty amounts or payment status are disclosed in the FY2025-26 annual report; any further disclosure would appear in subsequent filings.
Bottom line: This is a record of clean audit opinions and routine auditor appointments, but the substance behind the numbers is thin. The company's profit is a function of a single adjustable provision, its related-party activity is approved but undisclosed, and its own governance statements contradict documented penalties. The risk is not fraud on the books, but opacity: read the provision line and the RPT disclosures in the next annual report with care, and watch the 41st AGM votes.