Artemis Electricals & Projects Ltd has a mixed record: seven years of unqualified financial opinions sit alongside a recurring disclaimer on internal financial controls, repeated BSE penalties for filing delays, and a related-party battery plant that has missed commissioning deadlines for four straight years. The company has also cycled through four audit firms in six years, including two mid-term resignations.
Key findings
- Unqualified financial opinions, but internal controls disclaimed every year
Major- The standalone audit opinion was unqualified in every year from FY2020 through FY2026, but the internal-financial-controls report carried a disclaimer of opinion in each of those same years because management's information was not complete enough to determine operating effectiveness. The FY2025 consolidated report's Annexure A was titled "Disclaimer of Opinion" yet its text stated the company had adequate internal financial controls operating effectively as at 31 March 2025. - Related-party capital flows dominate, with a ₹9.40 lakh advance lacking repayment terms
Major- Shareholder-approved RPT limits run up to ₹100 crore per counterparty, including Shree Umiya Builders & Developers, Garuda Construction, and Ayesspea Holdings. A ₹9.40 lakh advance to a related party has no repayment schedule or stipulated period, terms the auditor called prima facie prejudicial to the company's interest. The company also made a ₹3.74 crore investment in a subsidiary during FY2025-26. - Four audit firms in six years, with two mid-term resignations
Major- Mittal Agarwal & Company resigned as statutory auditor for FY2023-24, and LLB & Co. resigned effective after completing the limited review for the quarter and half year ended September 30, 2024. Agarwal Tibrewal & Co. was appointed on December 12, 2024 to fill the casual vacancy, and the Board recommended their re-appointment for five years through the 21st AGM in calendar year 2030, subject to member approval. No auditor resignation occurred in FY2025-26. - Revenue concentrated in four customers; receivables take 120-180 days to collect
Major- Revenue from four customers totalled ₹70.93 crore in FY2025-26, all from the Construction segment, with no other customer above 10% of revenues. The average credit period allowed is 120-180 days, and receivable days rose from 121 in FY2024-25 to 179 in FY2025-26. The auditor flagged both revenue recognition and receivable recoverability as key audit matters in consecutive years. - BSE penalties for filing delays in every year from FY2022 through FY2025
Major- BSE imposed penalties for non-compliances in FY2024-25, FY2023-24, FY2022-23, and FY2021-22, with no penalties for FY2020-21. The secretarial audit report attributed the delays to the audit process, and the company admitted non-compliance with SEBI LODR regulations except for the penalties paid. Specific penalty amounts are not legible in the annual reports. - Disputed statutory dues and unprovided MSME interest persist
Major- Statutory dues have not been deposited on account of disputes in both FY2024-25 and FY2025-26. No interest was provided on MSME dues in FY2022-23, FY2023-24, or FY2024-25 because reconciliation and settlement were pending. Pending litigations are disclosed in Note 34 of the financial statements each year. - Debt fell to ₹2.68 crore after a ₹17.50 crore debenture issue was rescheduled and premium waived
Major- Total financial indebtedness was ₹2.68 crore as of 31 March 2025, with no unlisted debt securities outstanding. The ₹17.50 crore zero-coupon debenture issue from FY2021-22 was rescheduled to 15 November 2023, then to 15 November 2024, with holders extinguishing ₹10.45 crores of redemption premium. Bank borrowings remained secured by promoter-family property, including a Row House in Malad (E) in the name of Mrs. Jyotsna Agarwal. - Operating cash flow beats profit, but the related-party battery plant sits in CWIP for four years
Major- Cumulative CFO of ₹90.75 crore exceeded cumulative PAT of ₹14.43 crore across FY2022-FY2026. The Electroforce (India) Private Limited lithium-ion battery plant contract, approved by shareholders on 24 September 2021, has remained in CWIP with commissioning dates slipping from March 2023 to March 2024 to September 2025.
What to watch
- 17th AGM vote outcome. The RPT resolution covering 1st October 2026 to 30th September 2027 is subject to shareholder approval per the notice dated 5th September 2026.
- Electroforce battery plant commissioning. Management envisaged commissioning by September 2025 per the FY2024-25 annual report; any further delay would mark the fifth missed deadline.
- ₹9.40 lakh related-party advance. No repayment schedule or terms existed as at 31 March 2026; any subsequent terms-setting or recovery would resolve the CARO qualification.
- Disputed statutory dues and MSME interest. No amounts or case details are enumerated in the auditor's report pages, and MSME interest remained unprovided as of FY2024-25.
- BSE penalty disclosures. Specific penalty amounts for FY2024-25 and FY2023-24 remain illegible in the FY2025-26 Annual Report, and the pattern of penalties in each of FY2022 through FY2025 raises the question of recurrence in FY2025-26.
- LLB & Co. resignation disclosure. Any regulatory action or disclosure concerning the resignation effective 14 Nov 2024 under SEBI circular CIR/CFD/CMD1/114/2019 dated October 18, 2019.
Bottom line: Artemis has a clean financial-statement opinion but a recurring disclaimer on internal controls, repeated regulatory penalties, and a related-party battery plant that has missed four commissioning deadlines. The company's cash generation is real, but capital allocation is tied up in a related-party project with no completion date, and a small related-party advance lacks any repayment terms. Watch the AGM vote, the battery plant commissioning, and whether BSE penalties recur.