Vapi Enterprise Ltd’s record is defined by four consecutive years of qualified audit opinions from FY2021 to FY2024, a going-concern doubt that appeared in FY2024 and FY2026, and a cash-flow pattern that bears no consistent relationship to reported profit. The company has sold all its operating assets and, as of the FY2026 audit report signed 30 July 2026, had not communicated a business plan to its auditor. Two other features stand out: a ₹2.14 crore electricity deposit paid under protest sits unresolved before the Gujarat High Court, and a static ₹47.48 lakh interest-free borrowing from director-linked entities remains unconfirmed across multiple years.
Key findings
- Audit opinions were qualified for four years, and a going-concern doubt appeared in FY2024 and FY2026
Critical- The auditor issued a qualified opinion for FY2021, FY2022, FY2023, and FY2024, citing non-compliance with Ind AS 19, Ind AS 105, and Ind AS 12, with the effect on assets, liabilities, loss and reserves stated as “not ascertainable” in each year. In FY2024, the auditor added a going-concern doubt after management sold all lands and stated an intention to start a new business without providing a detailed plan or business type, a doubt that reappeared in the FY2026 report. Long-term inter-corporate borrowings of ₹47,48,076 and long-term trade payables of up to ₹10,59,605 remained unconfirmed across multiple years, and an electricity deposit of ₹2,14,16,973 paid under protest carried no accrued interest income because management was unsure of the appeal outcome before the Honorable High Court of Gujarat. - A decade-old electricity dispute has locked up ₹2.14 crore with no provision and suspended interest
Major- Vapi Enterprise is contesting a supplementary electricity bill of ₹69,64,717 raised by DGVCL under Section 126 of the Electricity Act, 2003 on 19 March 2013, with a total demand of ₹1,79,34,613 including interest. During FY2023-24, the company remitted an additional ₹1,67,62,198 under protest to secure an electricity connection for a purchaser of leasehold rights, bringing the total deposit classified as a non-current asset to ₹2,14,04,744 as at 31 March 2026. The auditor’s report for FY2025-26 includes an Emphasis of Matter, a special call-out in the audit report, highlighting the deposit and the non-recognition of interest income. - Stock-exchange fines for late filing and board-composition lapses were denied in the company’s own governance report
Minor- In FY2023-24, BSE Limited imposed a fine for non-compliance with Regulation 33 for March 2023 and with Regulations 17(1), 18(1), and 19(1)/19(2) for the quarter ended 31 December 2023. The company’s FY2023-24 Corporate Governance report states “there were no instances of non-compliance during the year,” contradicting the Secretarial Audit Report that records the fines.
What to watch
- Electricity deposit resolution. The ₹2,14,16,973 deposit paid under protest was outstanding as at 31 March 2026, pending appeal before the Honorable High Court of Gujarat.
- Business plan for sale proceeds. As of the FY2026 audit report dated 30 July 2026, management had not provided the auditor with a definitive plan for deploying the proceeds from the sale of all lands.
- Managing Director reappointment vote. A special resolution to re-appoint Mr. Manoj Ramanbhai Patel as Managing Director for five years from 30 July 2026 is proposed at the FY2025-26 AGM.
Bottom line: This is a four-year record of qualified accounts, a company that has sold its operating assets, and an auditor who has flagged a going-concern doubt in FY2024 and FY2026 without receiving a business plan. The cash-flow swings are extreme, the profit in the latest period turns on an accounting-policy change on a tiny investment, and a small related-party borrowing sits on the books. The character of the risk is existential: until a business plan is communicated and the electricity deposit is resolved, the financial statements carry an open question about whether the company continues as a going concern. Watch the Gujarat High Court ruling, the deployment plan for the land-sale proceeds, and the AGM vote on the Managing Director’s reappointment.