ACE Alpha Tech Ltd Forensic Report - SOIC x StockScans Report

as of Sep 2026

ACE Alpha Tech Ltd's financial statements for FY2026 show a clean audit opinion, but the underlying numbers reveal a sharp divergence between reported profit and cash generation. The company's receivables have ballooned to nearly equal its annual revenue, while operating cash flow has turned deeply negative, raising questions about the quality of its reported earnings. A proposed expansion of lending and investment limits to ₹1,000 crore, against a total asset base of just ₹73 crore, adds a layer of concern about potential fund diversion.

Key findings

  1. Proposed ₹1,000 crore lending limit dwarfs ₹73 crore asset base Major - ACE Alpha Tech Ltd's board on August 27, 2026 approved increasing the limit for loans and investments up to an aggregate value of Rs. 1,000 crore each under Section 186 of the Companies Act, 2013. The company's total assets stood at ₹73.08 crore as of FY2026. The company reported no borrowings and cash of ₹6.67 crore in FY2026. Arika Securities Pvt Ltd, a related party, was allotted 1,39,99,392 bonus shares in FY2025 in the proportion of 1,296 new fully paid-up equity shares of ₹10 each for every 1 existing share. The company stated in FY2025 that it had not granted loans or advances in the nature of loans to promoters, directors, KMPs and related parties. The company stated in FY2025 that no material related party contracts or arrangements required Form AOC-2 disclosure, and all RPTs were on arm's length basis and in the ordinary course. The CARO report for FY2026 states all transactions with related parties were in compliance with Sections 177 and 188 of the Companies Act, 2013, with details disclosed in the financial statements.
  2. Receivable days rose 931% to 357, nearly equaling annual revenue Major - Receivable days rose to 357 in FY26 from 35 in FY25, an increase of 931% year-over-year. Receivables stood at ₹23.69 crore against revenue of ₹24.23 crore in FY26, while FY25 receivables were ₹1.47 crore against revenue of ₹15.53 crore. Cash flow from operations was ₹-10.89 crore in FY26 compared to ₹11.09 crore in FY25, with CFO/PAT at -0.72x versus 0.99x. The Beneish M-score reached 8.30 for FY25→FY26, driven by DSRI of 10.33 (receivables/revenue ratio rose 933%) and SGI of 1.56. Sloan accruals ((PAT−CFO)/avgTA) reached 49.0% in FY26. Management identifies client concentration risk due to dependence on a limited number of clients, potentially causing revenue volatility. Management identified client concentration risk in FY25 as overdependence on a few clients and stated it was "actively working to diversify its client base."
  3. Cumulative operating cash flow covers only 30% of adjusted profit over five years Major - ACE Alpha Tech Ltd reported cumulative CFO of ₹11 crore against cumulative PAT of ₹40 crore less other income of ₹5 crore over five years, a coverage ratio of 0.30x. In FY26, ACE Alpha Tech Ltd reported operating cash flow of negative ₹10.89 crore against PAT of ₹15.20 crore, a CFO/PAT ratio of -0.72x. In FY25, ACE Alpha Tech Ltd reported operating cash flow of ₹11.09 crore against PAT of ₹11.20 crore, a CFO/PAT ratio of 0.99x. In FY24, ACE Alpha Tech Ltd reported operating cash flow of ₹10.02 crore against PAT of ₹10.31 crore, a CFO/PAT ratio of 0.97x. In FY23, ACE Alpha Tech Ltd reported operating cash flow of ₹0.56 crore against PAT of ₹3.32 crore, a CFO/PAT ratio of 0.17x. ACE Alpha Tech Ltd reported cumulative CFO of ₹11 crore against cumulative EBITDA of ₹51 crore over five years, a coverage ratio of 0.21x. ACE Alpha Tech Ltd reported free cash flow of negative ₹21.07 crore in FY26, compared to positive ₹9.92 crore in FY25 and positive ₹8.22 crore in FY24. ACE Alpha Tech Ltd reported ROCE of 29.50% in FY26, down from 45.09% in FY25, 64.81% in FY24, and 118% in FY23. ACE Alpha Tech Ltd reported capital work-in-progress of ₹3.70 crore and PP&E of ₹7.56 crore in FY26, a CWIP/PP&E ratio of 49%. ACE Alpha Tech Ltd reported no capital work-in-progress and no intangible assets under development at FY25 year end. ACE Alpha Tech Ltd reported zero borrowings (long-term and short-term) and zero lease liabilities in FY26, with cash of ₹6.67 crore.
  4. Promoter/board conduct is routine, with one individual holding MD and CFO roles simultaneously Minor - Mr. Gaurav Sharma (DIN: 01650857) was re-appointed as Managing Director and CFO at the 13th AGM, with 98.19% of votes in favour (13,210,517 votes, 46 members) and invalid votes of 243,046 (1.81%) from 1 member. Mr. Gaurav Sharma's remuneration last drawn and sought was ₹24,00,000 in both FY2024-25 and FY2025-26, with shareholding of 1.81% as on March 31, 2025. Ms. Chandni Sharma (DIN: 07227240), Non-Executive Non-Independent Director appointed January 16, 2024, drew NIL remuneration and sought NIL remuneration, with NIL shareholding as on March 31, 2026. A new Article 92A was inserted into the Articles of Association permitting the Board to appoint any individual as Chairman and Managing Director or Chief Financial Officer simultaneously. Annexure-4 (statement of top ten employees by remuneration) was excluded from the circulated Board's Report per Section 136(1) and made available only for inspection upon request. Mr. Manish Wahi and Mr. Sachin Goyal were appointed as Independent Directors effective April 08, 2024, and approved by shareholders on April 08, 2024. Ms. Shruti Shri Agnihotri resigned as Company Secretary effective April 30, 2024, and Ms. Priyanka was appointed Company Secretary effective May 01, 2024. Promoter shareholding stood at 43.90% with pledge at 0.00% as of the latest FY.
  5. Statutory auditor rotation proceeds on schedule with no resignations or adverse actions Clean - M/s Lalit Agarwal & Co., Chartered Accountants (Firm Registration No. 08995N) was re-appointed as statutory auditor in FY2021-22 for a 5-year term from the 9th AGM to the 14th AGM in 2026, and its Auditors' Report contains no qualification, reservation, adverse remark or disclaimer. The existing statutory auditor M/s Lalit Agarwal & Co, Chartered Accountants (Firm Registration No. 117366W/W-100018) was re-appointed at the 9th AGM held on November 30, 2021 for a second term of five consecutive years, expiring at the conclusion of the 14th AGM. The Board of Directors at its meeting held on August 27, 2026 recommended appointment of M/s S. Agarwal & Company, Chartered Accountants (Firm Registration No.: 000808N) as Statutory Auditors for a term of 5 consecutive years, from conclusion of the 14th AGM until conclusion of the 19th AGM, based on Audit Committee recommendation. The proposed fee payable to incoming statutory auditor M/s S. Agarwal & Company is up to Rs. 3,00,000/- p.a. (Rupees Three lakh only), excluding fees for permissible services other than statutory audit, with no material change in proposed fee from the outgoing auditor. CARO clause (xviii) in the FY2025-26 Independent Auditor's Report states no resignation of statutory auditors occurred during the year; the clause is not applicable. M/s Abhishek Gupta & Associates, Company Secretaries (FCS No. 9857; CP No. 12262; Peer Review Certificate No. 2375/2022) was appointed as Secretarial Auditor for 5 consecutive years FY2025-26 to FY2029-30, with remuneration for FY2025-26 of ₹30,000 excluding taxes and out-of-pocket expenses.

What to watch

Bottom line: This is a disclosed and audited record with a clean statutory opinion, but the cash story contradicts the profit story. The risk sits in the receivables line, where 357 days of sales are outstanding, and in the proposed ₹1,000 crore lending limit that is 14 times the company's entire asset base. Watch the AGM vote and the FY26-27 results to see whether cash generation recovers or the gap widens further.