Ajwa Fun World’s FY26 record shows a company that has sold its operating land, shut its park, and reported a ₹49 crore profit driven entirely by other income. The auditor signed an unqualified opinion while flagging the business closure as a Key Audit Matter, and the company has cycled through four auditor engagements in five years.
Key findings
- Reported profit of ₹49 crore is entirely other income, while operating cash flow is deeply negative
Major- Other income of ₹54.93 crore made up 101.6% of profit before tax of ₹54 crore in FY26, meaning core operations contributed nil or negative pre-tax profit. Operating cash flow was negative ₹19.71 crore, yielding a CFO/PAT ratio of -0.40x, and the Sloan accruals ratio hit 206.6%, an extreme divergence between reported earnings and cash. The company sold its entertainment park land at Village Rayantal wadi, Taluka Waghodia, District Baroda, and property, plant and equipment fell from ₹186.97 lacs to ₹13.69 lacs. - The entertainment park business has been scrapped, yet the auditor gave an unqualified opinion
Major- The company closed its entertainment park business, scrapped all buildings, plant and machinery of the water park, amusement park and resort, and sold the land during FY26. Revenue from operations was nil. The statutory auditor issued an unqualified opinion and an unmodified internal financial controls opinion, while reporting the discontinuation as a Key Audit Matter, a special call-out in the audit report. - Three auditor resignations in four years, with the latest firm sharing the same name but a different registration number
Major- M/s. DSKHTP & Associates LLP resigned in FY22, M/s. Aalap Parikh & Associates resigned effective 25 August 2024 citing pre-occupation, and M/s. SPVP & Co (FRN: 155159W) resigned on 13 August 2025. On 21 August 2025 the Board appointed M/s. SPVP & Co., Chartered Accountants (FRN: 111660W), citing dissolution of the predecessor, and the FY26 annual report identifies the auditor as S P V P & Co LLP (FRN: 111660W/W101148), a different legal form. - CARO reports show unsecured loans without repayment schedules and persistent non-compliance on interest charging
Major- In FY26 the company gave ₹2,18,75,986 as unsecured loans to LLPs and companies, either repayable on demand or without specified terms. In FY25 the figure was ₹79,62,236. In FY24 and FY23, CARO clause (iv) states the company complied with Sections 185 and 186 “except non-charging of interest on the loan.” - No provision for employee retirement benefits for at least seven years, with the impact unquantified
Major- From FY20 through FY26, the company made no provision for gratuity liability or other employee retirement benefits, stating it follows the cash method and has not determined the liability or the impact on profit and loss. In FY26, other income of ₹54.93 crore drove a PAT of ₹49.24 crore, and the company transferred the full ₹49.24 crore to General Reserve. - BSE penalty and notice for non-compliance, with one matter under appeal
Minor- BSE imposed a penalty on 1 August 2023 for non-compliance with SEBI (LODR) Regulations, and the company was in the process of complying as of the FY2023-24 audit period. Bombay Stock Exchange served a notice for non-compliance between 2013-16, and the company’s appeal was under process as of the FY2025-26 reporting date.
What to watch
- Deployment of land sale proceeds. The company stated proceeds would be used for repayment of borrowings, capital expenditure, and business diversification, as disclosed in the FY26 Annual Report.
- BSE appeal outcome. The appeal against the BSE notice for non-compliance between 2013-16 was pending as of the FY26 reporting period ended 31 March 2026.
- Promoter-to-public reclassification. Applications filed with stock exchanges for reclassification of Manish M Jain, Nilesh K Jain, and Kamlesh K Jain, authorised by the Board on 18 April 2026, remain under process.
- Advance to struck-off entity. Recovery or write-off of the ₹2,50,000 advance to Ranjit Holding Pvt Ltd, and any regulatory action from dealing with a section 248-struck-off company, as of the FY26 reporting period.
- Auditor re-appointment. Re-appointment of M/s. SPVP & CO., Chartered Accountants (FRN: 111660W) as statutory auditor at the 37th AGM, as recommended by the Board in the FY26 annual report.
Bottom line: This is a record of a company that has sold its operating asset, shut its business, and reported a profit built entirely on other income, all under an unqualified audit opinion. The risk is not hidden in the numbers, it is in the structure: a hollow earnings base, three auditor resignations in four years with the latest firm sharing the same name but a different registration number, and unsecured loans without repayment schedules alongside persistent non-compliance on interest charging. Watch whether the land sale proceeds are deployed as promised, and whether the auditor re-appointment and promoter reclassification proceed without challenge.