Shri Keshav Cements & Infra Ltd's record carries a critical, unresolved audit qualification that has now persisted for five years, alongside recurring governance and debt concerns. The company has also reported losses in the last two fiscal years, with cash flow from operations consistently exceeding reported profit.
Key findings
- Auditor has qualified opinion for five years on same ₹8.6 crore GST advance
Critical- Singhi & Co. issued a qualified opinion on FY2025-26 financials over an advance GST payment of ₹6.42 crore plus ₹2.18 crore interest and penalties made in FY2020-21 and FY2021-22, with the DGGI investigation incomplete and no order passed as of March 31, 2026. The same qualification has appeared in every annual report from FY2022-23 through FY2025-26, escalating from an Emphasis of Matter in FY2021-22 to a full qualified opinion. The limited review for the quarter ended June 30, 2026 contains a "Basis for Qualified Conclusion" on the same amount. - Promoter loans converted to equity at ₹125/share; CARO report contradicts company's own loan disclosure
Major- In FY2022-23, the company converted ₹24 crore of promoter-group unsecured loans into 19,20,000 equity shares at ₹125 per share, approved at EGM on 12/04/2023. As at 31/3/2026, inter-corporate deposits to related parties of ₹2.02 crore and ₹1.2 crore were outstanding, carrying 12% interest. The FY2025-26 CARO report states the company "has not provided loans" during the year, while the Board's Report for the same year states "Company had given a loan which is still outstanding". - Bank reporting gaps and rising rated facilities signal debt beyond balance sheet's face
Major- The company submitted quarterly stock statements to Canara Bank on an "estimated basis" with material deviations overstating statements during the second, third, and fourth quarters of FY2025-26. Total bank loan facilities rated by Infomerics rose from ₹169.77 crore (6 Sep 2023) to ₹269.35 crore (31 Mar 2025), with the rating outlook revised to 'Negative' from 'Stable' on 9 Jun 2026. Interest coverage was 0.7x in the latest period, with FY26 PAT of -6.53 and FY25 PAT of -6.17 against CFO of 36.71 and 28.82 respectively. - Cash flow from operations consistently exceeds reported losses; interest capitalised into CWIP
Major- CFO was ₹36.71 crore against PAT of ₹-6.53 crore in FY26, and ₹28.82 crore against PAT of ₹-6.17 crore in FY25. The company capitalised interest of ₹11.57 crore to CWIP during FY2025-26 at a capitalisation rate of 11.28% p.a.. CARO clause 3(ix)(d) for FY2025-26 states the company used ₹14.32 crore of short-term funds for long-term purposes. No dividend was recommended for FY2024-25 or FY2023-24. - Profit repeatedly shaped by non-cash fair-value and deferment-loan adjustments
Major- Sales Tax deferment loan treated as government grant grew every year: Other Income of ₹65.12 lakh in FY2022-23 to ₹1.43 crore in FY2025-26, with corresponding Interest Expense on fair value changes of ₹41.00 lakh to 1.08 crore. GST Compensation Cess on coal purchases of ₹2.43 crore was charged off to Statement of Profit & Loss in FY2023-24. FY2026 cash flow includes "Gain on fair valuation of interest-free loan from DIC" of 1.43 crore. - Company consistently reports no regulator penalties while DGGI investigation remained open
Minor- The FY2020-21 Annual Report disclosed a DGGI GST raid in Jan/Feb 2020, with management making an advance payment of ₹6.42 crore "under pressure and coercion". The FY2025-26 Annual Report stated no penalty or strictures were imposed by the Stock Exchange, SEBI, or any other statutory authority during the fiscal year ended 31/03/2026. A certificate dated 04/08/2025 certified none of the company's directors were debarred or disqualified by SEBI, MCA, or any other statutory authority for FY2024-25.
What to watch
- DGGI investigation outcome. The investigation on the ₹8.6 crore GST advance remained incomplete with no order passed as of June 30, 2026.
- High Court refund petition. The company's refund petition on the GST advance was pending as of March 31, 2026.
- 33rd AGM on 18th September 2026. Special resolutions will seek approval for excess remuneration for all three Katwa brothers for FY2025-26, and to re-appoint Mr. Vilas Katwa as MD for 5 years from 27/05/2027.
- Inter-corporate deposit repayments. The ₹2.02 crore deposit due 25/7/2026 and ₹1.2 crore due 23/8/2026, whether repaid on time or renewed.
- Infomerics rating review. The rating outlook was revised to 'Negative' on 9 Jun 2026.
Bottom line: This is a record with a sustained adverse audit opinion at its core, a five-year-old unresolved GST advance that the auditor keeps flagging. Around it sit governance and balance-sheet strains: a CARO report contradicting the company's own loan disclosure, and rising rated bank facilities that signal debt beyond the balance sheet's face. The cash flow is real, but it is being routed around reported losses through capitalised interest and fair-value gains. Watch the DGGI order, the AGM resolutions, and whether the inter-corporate deposits get repaid.