Jaiprakash Power Ventures Ltd

⚠️ Jaiprakash Power Ventures FY2026 Audit: Key Financial & Legal Updates

- Auditor issued a qualified opinion on Jaiprakash Power Ventures Limited's consolidated financial results for Q4 March 2026 and FY2025-26.

- Non-provision of Rs. 123,915 lakhs for corporate guarantee to State Bank of India for Jaiprakash Associates Limited (JAL), which is under insolvency.

- Non-provision of Rs. 578 lakhs advance paid to JAL for works/repairs, with claims filed under insolvency process.

- Dispute with ICICI Bank-led lenders over recompense claim of Rs. 569,651 lakhs; management believes no amount is payable.

- Recognition of MAT credit entitlement of Rs. 26,596 lakhs, which auditors state should not be recognized under Ind AS 12, affecting tax expense and retained earnings.

- UPPCL claims Rs. 47,148 lakhs excess payment from company; management disputes and has filed appeal, no provision made.

- Entry tax demand of Rs. 10,871 lakhs for Nigrie unit; Rs. 6,685 lakhs deposited and considered recoverable, no provision made.

- Pending confirmations/reconciliations for balances including borrowings, receivables, payables, and inventory; management strengthening internal controls.

- DMG demand notices of Rs. 855,704 lakhs for alleged illegal sand extraction; company disputes, court stay granted for Rs. 221,654 lakhs.

- SEBI imposed penalty of Rs. 14 lakhs on company and Rs. 40 lakhs on executives for non-compliance with circulars on related party transactions.

- Material uncertainty on going concern for subsidiaries: JAPL, JMPL, SPGCL, and BMSL due to eroded net worth and losses.

- Audit includes results of subsidiaries: Jaypee Arunachal Power, Jaypee Meghalaya Power, Sangam Power Generation, and Bina Mines and Supply.

- Report signed by Suren Jain (MD & CEO), Dr. Dinesh Kumar Likhi (Audit Committee Chairman), RK Porwal (CFO), and auditors Lodha & Co. LLP on May 4, 2026.

- SEBI imposed a penalty of ₹14 lakhs on the company and ₹40 lakhs on MD, CEO, CFO, and four directors for non-compliance during FY2012-13 to FY2021-22; company appealed to SAT, which granted stay on 50% penalty deposit.

- Company deposited ₹24,909 lakhs per Delhi High Court order in a dispute with a capital goods supplier; management believes no additional provision needed due to existing ₹11,742 lakhs provision.

- ICICI Bank claimed ₹5,69,651 lakhs as recompense under debt restructuring; company disputes this, citing no payable amount based on free cash flow and RBI guidelines.

- Company recognized MAT credit entitlement of ₹26,596 lakhs, carrying it forward due to statutory 15-year window and business reassessment.

- Auditor issued qualified opinion due to non-provision for corporate guarantee of ₹123,915 lakhs to SBI for JAL (under insolvency), unascertained impact on financials.

- UPPCL withheld ₹39,183 lakhs and claimed ₹47,148 lakhs excess payments; company disputes, citing credible case and no provision made.

- Pending confirmations/reconciliations for balances including secured/unsecured borrowings, trade payables/receivables, and inventory; management expects no material impact.

- DMG issued show-cause/demand notices for ₹8,55,704 lakhs over alleged illegal sand extraction; company disputes, citing no cogent basis and stay from High Court.

- New labour codes implemented; company recognized additional provisions of ₹987 lakhs for gratuity and compensated absences.

- Supreme Court ruling allows states to levy tax on mineral rights; impact on company currently unascertainable.

- Jaiprakash Power Ventures Limited held its 156th Board of Directors meeting on May 4, 2026.

- Approved audited standalone and consolidated financial results for Q4 and full year ended March 31, 2026, with revenue of ₹5,56,346 lakhs (standalone) and ₹5,56,346 lakhs (consolidated) for FY2026.

- Statutory auditors Lodha & Co. LLP issued audit reports with modified opinions on both standalone and consolidated financial results.

- Appointed BDO India Services Private Limited as the new internal auditor, replacing R. Nagpal Associates, effective May 4, 2026.

- Approved appointments of three independent directors: Shruti Anup Shah (from July 1, 2026), Jayant Misra (from July 1, 2026), and Mukesh M. Shah (from November 1, 2026), each for three-year terms, subject to shareholder approval.

- Board approved payment of remuneration to executive and non-executive directors within permissible limits under the Companies Act, 2013, subject to shareholder approval.

- Net profit after tax for FY2026 was ₹44,152 lakhs (standalone) and ₹45,063 lakhs (consolidated), compared to ₹81,073 lakhs (standalone) and ₹81,355 lakhs (consolidated) in FY2025.

- Revenue from operations for Q4 FY2026 was ₹1,38,643 lakhs (standalone) and ₹1,38,643 lakhs (consolidated).

- The company faces ongoing legal and regulatory issues, including SEBI investigations and disputes with Uttar Pradesh Power Corporation Ltd. (UPPCL) and Andhra Pradesh Directorate of Mines & Geology (DMG).

- Corporate guarantee of USD 1,500 lakhs (approx. ₹123,915 lakhs) provided to State Bank of India for Jaiprakash Associates Limited remains a contingent liability, with claims filed under insolvency proceedings.