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Mideast Integrated Steels FY26 Loss Widens, Auditors Flag Going Concern

By Varun MittalMideast Integrated Steels FY26 Loss Widens, Auditors Flag Going Concern

Mideast Integrated Steels reported a ₹1,685.46 million loss for FY26, significantly wider than last year. Auditors flagged severe going concern doubts due to business inactivity and huge legal liabilities.

Mideast Integrated Steels FY26 Loss Widens, Going Concern Doubts Raised

Mideast Integrated Steels Limited reported a consolidated net loss of ₹1,685.46 million for the financial year ended March 31, 2026, a significant jump from ₹239.13 million last year. Statutory auditors, Ashok Shyam & Associates, issued a qualified opinion, expressing substantial doubts about the company’s ability to continue as a going concern.

Key Audit Flags & Financials

The auditors’ concerns stem from the absence of business activity and considerable outstanding legal liabilities. Here’s a breakdown:

  • Net Loss: ₹1,685.46 million (FY26) vs. ₹239.13 million (previous year).
  • Revenue: ₹627.51 million for the year.
  • Supreme Court Demand: The company failed to provision for a ₹924.75 crore Supreme Court compensation demand, arguing a Curative Petition is pending. Auditors insist a provision should be made, which would lead to negative net worth.
  • Uninsured Assets: Fixed assets worth ₹1,174.435 crores lack insurance coverage.
  • Receivables: No provisions for ₹7.80 crores in non-moving trade receivables.
  • Unfiled GST: Significant unfiled Goods and Service Tax (GST) returns for Odisha since November 2020, and ISD returns for Delhi and West Bengal from April 2022.
  • Customer Advances: ₹315.81 crores in customer advances unappropriated for over 365 days, potentially treated as deposits under the Companies Act.
  • Unsecured Loans: ₹44.52 crores in unsecured loans from promoters and other parties lack balance confirmations.

Board Action

The board approved these financial results on May 30, 2026. Mideast Integrated Steels noted a deposit of ₹415.79 crores, including GST, towards the compensation demand, made under protest.

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