Anuh Pharma’s record is technically clean, six years of unqualified audit opinions, zero borrowings, and no material regulatory orders, but the combination of rising related-party loans without repayment terms, a recurring revenue-recognition Key Audit Matter, and a family board that votes its own pay rises with near-zero dissent deserves a close read.
Key findings
- Loans to related parties carry no repayment terms, while related-party sales double and a ₹100 crore annual limit is set
Major- The auditor’s CARO report, a mandatory check on company law compliance, flags that loans to related parties are repayable on demand or have no specified terms, a finding that appears in both FY25 and FY26 after being absent in FY22 and FY23. Over the same window, sale of goods to related parties rose from ₹37.13 crore in FY23 to ₹71.13 crore in FY24, and related-party trade receivables outstanding climbed from ₹25.50 crore to ₹27.68 crore. Shareholders approved an ordinary resolution on 12 December 2023 authorising transactions with S. Kant Healthcare Ltd. up to ₹100 crore per annum through 31 March 2028. - Operating cash flow is volatile and cumulatively lags reported profits, while dividends grow and capex stays modest
Minor- Cumulative operating cash flow of ₹167 crore over FY21-FY26 covers only 0.43 times cumulative EBITDA of ₹393 crore over the same period. In FY26, CFO turned negative at ₹-3.01 crore against a profit after tax of ₹41.05 crore, following uneven annual ratios that ranged from -0.66x to 1.49x. The Board recommended a final dividend of ₹2.50 per share for FY25, up from ₹1.75 per share for FY22, while capital work-in-progress stood at just ₹45.40 lakh as at 31 March 2024 and was zero by FY26. - Statutory auditor unchanged since at least FY2020, audit fees rose 141%, and the secretarial auditor was replaced with a 147% fee increase
Minor- Jayantilal Thakkar & Co. has been the statutory auditor from at least FY2019-20 through FY2025-26, and was re-appointed at the 62nd AGM on 5 August 2022 for a second five-year term covering FY2022-23 to FY2026-27. Total statutory audit fees rose from ₹6.73 lakh in FY2019-20 to ₹16.20 lakh in FY2025-26, an increase of 141%, while the audit engagement partner changed once, from Viral A. Merchant to Dilip J. Thakkar from FY2022-23 onward. M/s. GHV & Co. was appointed as secretarial auditor for a first term of five years from FY2025-26, replacing the previous secretarial auditor, with a proposed fee of ₹2,10,000 compared to ₹85,000 paid to the outgoing firm. - SEBI penalty disclosed in early reports, and a tax demand is under appeal
Clean- Anuh Pharma paid a penalty of ₹3,59,900 for a 61-day delay in appointing a woman director, and its corporate governance reports for FY2020-21 and FY2021-22 disclose this non-compliance. The Income Tax Department issued an Assessment Order for AY 2020-21 on 20 January 2026 resulting in a tax demand of ₹78.28 lakh, and a further Tax Demand and Penalty Order on 18 June 2026 with a quantifiable impact of ₹17.46 lakh; the company is in the process of filing an appeal.
What to watch
- Joint MD remuneration vote. Shareholder vote on the FY2025-26 AGM resolutions for revision in Joint MD remuneration and director reappointments, as per the AGM notice issued in the FY2025-26 Annual Report.
- Promoter reclassification. Completion of the reclassification process for the nine promoter-group individuals who submitted requests on 19 May 2026, subject to stock exchange and shareholder approvals.
- Income Tax appeal for AY2020-21. Outcome of the company’s appeal against the Income Tax Department’s Assessment Order and Tax Demand/Penalty Orders for AY 2020-21, as disclosed on 19 June 2026.
- CARO report in FY27. Whether the CARO report continues to flag loans to related parties without specified repayment terms and whether the quantum of such loans is disclosed (D1 period ended 31 March 2026).
- Auditor rotation. Expiry of Jayantilal Thakkar & Co.’s current five-year term at the 67th AGM (FY2026-27), requiring a new statutory auditor appointment or rotation decision.
Bottom line: This is a debt-free, dividend-paying company with a clean regulatory record and real export credentials. The risk sits in two places: the related-party channel, where loans carry no repayment terms and sales are growing fast against a ₹100 crore annual approval, and the receivables book, which stretches past 110 days with no provision. Watch whether the CARO flag on related-party loans disappears in FY27, and whether the nine promoter-group members complete their exit from the promoter classification.