Tinna Rubber & Infrastructure's audit record is split cleanly in two: three consecutive qualified opinions (FY2021-FY2023) on treatments that overstated profit, followed by clean opinions from FY2024 onward. The current auditor has also flagged that quarterly bank statements did not match the books in FY2026. Alongside the audit history sit 22 promoter disposals totaling ₹70 crore since 2026-07-27, and a revenue line increasingly tied to EPR credit monetization.
Key findings
- Auditors issued qualified opinions for three straight years on profit-overstating treatments
Critical- V.R. Bansal & Associates qualified the FY2021 opinion because ₹80.43 lakh of FY2019 expenses were amortized over three years, understating that year's net loss by ₹53.62 lakh. The same auditor qualified FY2022 because a ₹5.57 crore tax expense was written off to equity instead of the profit and loss account, overstating profit by that amount. S.S. Kothari Mehta & Company carried the same ₹5.57 crore qualification into FY2023. Clean opinions resumed for FY2024-FY2026, but the FY2026 CARO report states quarterly bank statements were not in agreement with the books. - Management repeatedly used policy choices and reserve adjustments to lift reported profit
Major- The company extended plant useful lives from 12 to 20 years in October 2022, cutting depreciation and raising FY2023 profit by ₹1.61 crore. The ₹5.57 crore tax settlement for a FY2014 dispute was adjusted directly against reserves, not the P&L, and a further ₹80.21 lakh of MAT credit was also routed through equity. In FY2025, the company booked a ₹2.18 crore profit on a land sale to Ruchira Papers Limited while registration was still pending. - Multi-crore guarantees, loans and investments flow through a web of director-interested entities
Major- Corporate guarantees to related parties stood at ₹45.85 crore in FY2020 and ₹61.25 crore in FY2021. The guarantee for Tinna Trade Limited, a subsidiary until 2016, peaked at ₹66.92 crore in FY2023 before release on January 6, 2025. Unsecured loans from Bhupinder Kumar Sekhri, Gaurav Sekhri and Bee Gee Ess Farms and Properties Private Limited stood at ₹4.72 crore as of March 2025. The BGK Infratech investment was reduced via buyback, with the remaining stake valued at ₹19.4 crore as of March 2026. - Land, tax and export disputes span a decade, with a ₹32.95 crore export obligation unmet
Major- A ₹3.73 crore HSIIDC demand on Panipat land remains pending before a Supreme Court curative petition as of FY2026. The advance license export obligation grew to ₹32.95 crore by FY2026, with only 3,581.76 MT of the required 14,873 MT fulfilled. A ₹3.56 crore countervailing duty paid under protest since FY2021 is still tied up in litigation. The FY2014 income tax dispute, with a ₹5.57 crore impact routed through reserves, also remains open. - Revenue growth leans on EPR credit monetization recognized on approval, with prior-year credits landing in Q1 FY27
Major- Management confirmed that EPR credits accrued up to March 2026, about ₹25 crore, were fully monetized in Q1 FY27, with the profit "related to the previous financial year". Recognition is "on an approval basis," tied to credits appearing on the government portal. Receivable turnover fell 29% in FY26, attributed to changed payment terms. The auditor flagged revenue recognition as a Key Audit Matter in FY2024. - Associate investments sit at unsupported values, with no impairment ever booked
Major- The TP Buildtech investment rose to ₹7.41 crore while the associate's net worth was "eroded" or "partially eroded" every year from FY2021 to FY2024, with no impairment provision. Auditors issued an Emphasis of Matter on this in each of those three years. BGK Infratech's fair value of ₹20.81 crore from March 2022 was "continued" into FY2023 under a once-in-three-years valuation policy. No impairment was recognized on any asset in any year from FY2021 through FY2026. - Auditor rotation was routine and disclosed, with no resignation in any year
Clean- V.R. Bansal & Associates rotated off at the June 30, 2022 AGM after ten years, replaced by S.S. Kothari Mehta & Company. The new firm has issued clean opinions since FY2024. CARO reports for FY2022, FY2024, FY2025 and FY2026 all state no auditor resignation occurred.
What to watch
- Trust compliance certificate. The Sekhri Family Annuity Trust must furnish its first independent auditor's compliance certificate for the quarter ending March 31, 2027, per the SEBI exemption order.
- Bank statement mismatch. The FY2026 CARO exception on quarterly bank statements not matching the books, reported May 22, 2026, may draw further scrutiny.
- HSIIDC land demand. The ₹3.73 crore demand awaits a Supreme Court curative petition ruling, pending as of FY2026.
- Export obligations. The ₹32.95 crore advance license obligation is due within 1.5 years of license issue under Foreign Trade Policy 2015-20.
- Kalamb land registration. The sale deed to Ruchira Papers Limited was still pending as of FY2025, with the ₹2.18 crore profit already booked.
Bottom line: This is a record with a clean recent audit history but a sustained earlier pattern of profit-lifting treatments, and a web of promoter-family compensation, guarantees and related-party flows that the audits repeatedly flagged. The risk character is one of aggressive accounting choices and concentrated related-party exposure, now compounded by revenue recognition tied to EPR credits that shift earnings between periods. Watch the items above, particularly the bank statement mismatch and the EPR treatment in FY27 results.