Flomic Global Logistics' record carries a clean audit history and a single auditor change in a decade, but the cash story and the governance disclosures pull in the opposite direction. Operating cash flow has been deeply negative for two years while profits stayed positive, and the company paid its first dividend in years. The same filings that report no subsidiaries, no material related-party transactions, and zero borrowings also seek approval for guarantee fees to the promoter family and rely on director-owned assets as security.
Key findings
- Operating cash flow deeply negative for two years while profits stayed positive
Major- Operating cash flow was ₹-4.37 crore against a profit of ₹0.53 crore in FY2025-26, and ₹-2.15 crore against ₹0.15 crore in FY2024-25. Cash balances swung by 3.09 crore on unrealised translation moves, and the board recommended a first dividend of INR 0.10 per share with a record date of 17 September 2025. - Seven years of clean audit opinions, with recurring CARO exceptions never resolved
Major- Doogar & Associates issued an unqualified opinion for FY2025-26 with no Key Audit Matters, the seventh consecutive year of such opinions. Yet CARO reports flagged a title deed held in a director's name, Income Tax of ₹13.49 lakhs overdue for four straight years, and bank-statement mismatches for five consecutive years. - No subsidiaries reported, but consolidated profit is 909% higher than standalone
Major- The FY2025-26 annual report states "no subsidiary, joint venture or associate company" exists, a statement repeated in every report since FY2020. Consolidated PAT of ₹0.53 crore versus standalone PAT of ₹5.35 crore implies a 909% difference at the subsidiary level. A 1,09,68,360-share amalgamation allotment remained unlisted and unprocessed in shareholding records for over four years. - Guarantee fees for the MD and his wife sought while filings say no material related-party transactions
Major- The 45th AGM notice seeks approval for guarantee fees of up to ₹50 lakh each to Mr. Lancy Barboza and Mrs. Anita Lancy Barboza for personal guarantees on credit facilities. The FY2025-26 annual report simultaneously states "no materially significant related party transactions" and that Form AOC-2 is not required. - Promoter family controls the board; declared pay terms disclosed
Major- Mr. Lancy Barboza (MD), his wife, and their son serve together on the board. The MD's re-appointment includes a basic salary of INR 1.26 crore plus perquisites up to the same amount. At the 44th AGM, 8,402,490 votes from interested promoters were declared invalid on the reappointment of the son. - Borrowing capacity raised to ₹100 crore while reported borrowings are zero
Major- The borrowing limit under Section 180(1)(c) was increased to ₹100 crore, superseding an earlier resolution dated 30th December 2020. As of FY2025-26, the company reports zero borrowings and zero leases. Security for ICICI Bank facilities includes 10 mortgaged properties owned by directors, and vehicle loans registered in a director's name had balances of ₹68.53 lakhs (non-current) and ₹42.98 lakhs (current) as at March 31, 2020. - Profits shaped by a court-approved amalgamation and contradictory accounting-standard disclosures
Major- The NCLT-approved amalgamation was accounted under the Pooling of Interest Method, booking a capital reserve of ₹18.11 lakhs and adding 2.73 crore to retained earnings. The FY2024-25 MD&A states financial statements were prepared under Indian GAAP, while the CFO stated in the Q1 FY27 call that "we are a listed company we have to follow the Ind AS". - Revenue growth driven by freight rates, with collection cycles above stated targets
Minor- Revenue grew from ₹11.43 crore in FY2020-21 to ₹422.38 crore in FY2023-24. The CFO said the collection cycle "increased to almost 72 days, which has come down now to 57 day, 56 days" against a 30-60 day target. Pure agent expenses of ₹114.26 crore were reduced from sales with no GST charged. - One auditor change in a decade, with no resignations
Clean- S A R A & Associates was replaced by Doogar & Associates in 2022 after its tenure expired. The appointment passed with 100% votes in favour at the 41st AGM. CARO reports in FY2024-25 and FY2025-26 state no auditor resignation occurred.
What to watch
- Guarantee fee payments. Whether fees were paid to the MD and his wife after the 45th AGM, and whether RPT disclosures change, next annual report expected after 31 March 2027.
- Operating cash flow. Whether CFO turns positive in FY2026-27 after two negative years, next annual report expected after 31 March 2027.
- Amalgamation share listing. Whether the 1,09,68,360 shares complete BSE listing and shareholding pattern update, flagged "under process even till date" as of the FY2023-24 annual report.
- Borrowing limit utilisation. Whether the ₹100 crore limit approved 27 August 2024 is used, given reported borrowings of zero as of FY2025-26.
- Recurring CARO exceptions. Whether the overdue Income Tax and quarterly bank-statement mismatches are cleared in the FY2026-27 audit report.
Bottom line: This is a record with a clean audit opinion and a stable auditor, but the cash flow, the group structure, and the related-party disclosures all point to a company whose reported picture is incomplete. The risk is concentrated in how the promoter family is compensated and how the group's actual shape is presented. Watch the next annual report for whether the guarantee fees are paid, whether cash flow turns positive, and whether the amalgamation shares finally get listed.