Garbi Finvest Ltd (539492)

Garbi Finvest reported a sharp decline in net profit to ₹0.05 crore for Q1 FY27, down from ₹1.19 crore in the same quarter last year. While total income grew to ₹0.87 crore from ₹0.52 crore YoY, the results are overshadowed by severe auditor qualifications. The statutory auditor highlighted the absence of an Expected Credit Loss (ECL) model and a failure to implement mandated Internal Financial Controls (IFC). Most critically, the auditor noted that interest was not accounted for on all loan accounts, making the reported revenue figures potentially unreliable.

• Net Profit declined by 95.6% YoY to ₹0.052 crore from ₹1.187 crore.
• Total Income rose to ₹0.869 crore, a 66% increase compared to ₹0.522 crore in the year-ago period.
• Auditor flagged non-compliance with Ind AS 109 due to the absence of an Expected Credit Loss (ECL) model.
• Management failed to provide control design documentation, leading to a failure in Internal Financial Control (IFC) compliance.
• Auditor stated they are unable to comment on revenue accuracy as interest was not accounted for on all loan accounts.

Garbi Finvest reported a net loss of ₹60.66 Lakhs for the quarter ended June 30, 2026, a sharp reversal from a profit of ₹118.75 Lakhs in the year-ago period. Total income remained extremely low at ₹8.69 Lakhs, while expenses surged to ₹20.18 Lakhs. The statutory auditor issued a qualified review, highlighting the company's failure to implement the Expected Credit Loss (ECL) model and Internal Financial Controls (IFC). Additionally, the auditor noted that interest was not accounted for on all loan accounts, making the reported revenue figures unreliable.

• Net loss of ₹60.66 Lakhs in Q1 FY27 vs a profit of ₹118.75 Lakhs in Q1 FY26
• Total income for the quarter stood at ₹8.69 Lakhs, which is approximately 2.1% of TTM revenue
• Auditor flagged non-compliance with Ind AS 109 due to the absence of an Expected Credit Loss (ECL) model
• Failure to implement Internal Financial Controls (IFC) as mandated by the Companies Act, 2013
• Revenue accuracy questioned by auditors as interest was not recorded for all loan accounts