Talbros Engineering's record is clean on its face: seven consecutive unmodified audit opinions, zero promoter pledging, and no reported fraud or loan defaults. Three items deserve attention: borrowings rose from ₹58.89 crore in FY2020 to ₹75.69 crore in FY2021 and then to ₹147.79 crore in FY2026, the FY2022-23 annual report contains three contradictory revenue and profit figures, and an ESI payable on contractor of ₹24.33 lakhs has been in arrears for more than six months across FY2022-23, FY2023-24, and FY2025-26.
Key findings
- Borrowings have more than doubled to ₹147.79 crore since FY2020
Minor- Consolidated borrowings rose from ₹58.89 crore as of 31 March 2020 to ₹75.69 crore as of 31 March 2021, and further to ₹147.79 crore as of 31 March 2026. Shareholders approved increasing the borrowing limit and providing security under Sections 180(1)(c) and 180(1)(a) at the 39th AGM on 30 September 2025. - The FY2022-23 annual report contains internally contradictory revenue and profit figures
Minor- The Board's Report narrative states revenue from operations of ₹3,444.17 crore and net profit after tax of ₹327.95 crore for FY ended 31 March 2023, while the same page's financial table shows Total Revenue from Operations of ₹44.417 crore and Net Profit after tax of ₹2,793 lakh (₹27.93 crore). The MD&A in the same report states sales turnover of ₹444.17 crore and net profit after tax of ₹27.95 crore. - Seven consecutive clean audit opinions carry one recurring statutory-dues exception
Minor- Rakesh Raj & Associates issued an unmodified opinion for FY2025-26, dated 29.05.2026, with no key audit matters reported. The only recurring CARO statutory-dues exception across FY2022-23, FY2023-24 and FY2025-26 is ESI payable on Contractor of ₹24.33 lakhs in arrears for more than six months. No fraud was reported and no Form ADT-4 was filed in any of the six years reviewed. - Statutory auditor fees doubled from ₹3.50 lakhs to ₹9.00 lakhs between FY2022 and FY2023
Minor- Total fees to Statutory Auditors were fixed at ₹3.50 lakhs in FY2019-20, FY2020-21, and FY2021-22. Fees were fixed at Rs. 9.00 Lakhs in FY2022-23, FY2023-24, and FY2024-25. The 40th AGM notice proposes revising remuneration to Rs. 11,00,000 for FY2026-27. Internal Auditor M/s GRAB and Associates resigned w.e.f. January 01, 2026, and M/s Bansal Harshit & Associates was appointed for the remainder of the year. - Promoter and board conduct is routine, with near-unanimous approvals and zero pledging
Minor- Promoter shareholding stood at 72.59% as of the latest FY with zero pledge. One promoter-group member, Mr. Karan Talwar, purchased shares during a trading window closure in FY2022-23 and was penalized ₹20,000, deposited to SEBI IPEF. Director re-appointments and appointments passed with 99.99% votes in favour.
What to watch
- Auditor remuneration vote. Shareholders will vote on revising statutory auditor remuneration to Rs. 11,00,000 for FY2026-27 at the 40th AGM.
Bottom line: This is a clean audit record with no promoter pledging. The risk sits in the rising borrowings, now at ₹147.79 crore, and in the ESI payable exception that has recurred across FY2022-23, FY2023-24 and FY2025-26. Watch the 40th AGM vote, and note the internally contradictory revenue and profit figures in the FY2022-23 annual report as a material risk.