BF Utilities posts profit, faces significant audit concerns

BF Utilities Limited announced its unaudited consolidated financial results for the quarter ended June 30, 2025, with total revenue reaching INR 21,780.33 lakhs and a profit after tax of INR 9,658.96 lakhs. The board of directors approved these results on December 16, 2025. The company's infrastructure segment generated INR 21,097.22 lakhs, while wind mills contributed INR 683.08 lakhs.

However, the financial results were accompanied by an adverse conclusion from G. D. Apte & Co., chartered accountants. The auditor highlighted concerns regarding the classification of Compulsory Convertible Preference Shares (CCPS) of its step-down subsidiary, Nandi Economic Corridor Enterprises Ltd. (NECE), as equity instruments instead of financial liabilities. Additionally, an arbitration claim of INR 500 Crore plus 18% IRR has been filed against NECE.

Further audit issues include the inability to ascertain the nature and utilization of a INR 3,700 lakhs advance to NECE for land acquisition, outstanding for over fourteen years. The auditor also noted the successful conclusion of toll operations for Nandi Highway Developers Limited (NHDL) on September 7, 2024, raising questions about impairment provisions. The audit firm was also unable to obtain sufficient audit evidence from three subsidiaries due to non-response from component auditors.