F Mec International's record shows seven years of clean audit opinions and no reported defaults on its own borrowings. Three things cut against that picture: overdue loans have surged from nil to ₹464.91 Lacs in three years without the auditor ever flagging a Key Audit Matter, the Enforcement Directorate has attached a promoter's shares as proceeds of crime, and the promoter group faces regulatory action while the Managing Director's pay is being doubled.
Key findings
- Overdue loans surged from nil to ₹464.91 Lacs with no auditor escalation
Major- Loans overdue more than 90 days rose from nil as at 31 March 2023 to ₹18.73 Lacs a year later, ₹68.25 Lacs by March 2025, and ₹464.91 Lacs by March 2026. Across the same period the statutory auditor issued unqualified opinions every year from FY2020 through FY2026 and determined there were no Key Audit Matters, the issues requiring the most judgement, in any year from FY2021 through FY2026. Loans repayable on demand still made up 34.21% of total loans in FY2026, at ₹892.65 Lacs. - Promoter Manoj Kumar Jain's shares were attached as proceeds of crime under PMLA
Major- The Enforcement Directorate issued Provisional Attachment Order No. 15/2024 on 14 October 2024 against promoter Manoj Kumar Jain, attaching shares as "proceeds of crime" under the Prevention of Money Laundering Act, 2002. The Adjudicating Authority confirmed the attachment on 25 March 2025. The company's Board's Report for FY2025-26 states that during the year under review, no significant and material orders were passed by regulators or courts impacting going concern status. - Statutory auditor rotated after 10 years; secretarial auditor has been re-appointed since at least FY2020-21
Minor- M/s. Sanjay K Singhal & Co served as statutory auditors for 10 years until their term expired at the 32nd AGM on 26 September 2025, and shareholders approved M/s. KSJ & Co as replacement for five years with 99.999% of votes in favour. M/s. A.K. Verma & Co., Practicing Company Secretaries, was re-appointed as Secretarial Auditor for five years from FY2025-26 at the same AGM, having been re-appointed annually or for multi-year terms in every year from FY2020-21 onward.
What to watch
- MD remuneration vote. Shareholder vote at the 33rd AGM (notice dated 6 August 2026) on the revision of Mr. Apoorve Bansal's remuneration to ₹2,00,000 per month effective 1 April 2026.
- Overdue loan recovery. The next annual audit report for FY2026-27, expected around May 2027, to confirm whether the ₹464.91 Lacs overdue as at 31 March 2026 has been recovered or has grown further.
- PMLA proceedings. Status of the attached shares and any further proceedings under the Prevention of Money Laundering Act, 2002 against promoter Manoj Kumar Jain following the Adjudicating Authority's confirmation order dated 25 March 2025.
- Director re-designation. Pending RBI approval for the change in designation of Mr. Kabeer Chaudhary from Independent Non-Executive Director to Professional Non-Executive Director (application dated 30 April 2025).
Bottom line: This is a small NBFC whose own borrowings are modest and whose audit record is technically unblemished. The risk is concentrated in the promoter group: one promoter's shares sit under a confirmed PMLA attachment, and overdue loans have climbed to ₹464.91 Lacs without the auditor ever escalating scrutiny. Watch the AGM vote on remuneration and whether those overdue loans are collected or written off.