Gilada Finance & Investments Ltd Forensic Report - SOIC x StockScans Report

as of Aug 2026

Gilada Finance & Investments Ltd has received clean audit opinions every year, but those opinions sit on top of a record of recurring non-compliance: related-party loans of ₹7.82 crore made on oral agreements with no written terms, an unpaid BSE fine carried for over five years, and a disputed tax demand unresolved since FY2020-21. The promoter family holds every executive position, the statutory auditor is being replaced after a single term, and the company's own disclosures contradict its reported asset quality.

Key findings

  1. Clean audit opinions mask recurring non-compliance Major - For FY2025-26, the auditor issued an unqualified opinion with no Key Audit Matters identified, despite the Board's Report not being available at the audit report date of 28 May 2026. A disputed income tax liability of ₹20,51,022 for AY 2017-18 has been under appeal in every year's CARO report from FY2020-21 through FY2025-26. The company was "still in the process of compliance" with EPF and ESI registrations, and defaulted on repayment to Maheswari Souharda Credit Co-operative Society Ltd. with the amount not quantified.
  2. Unpaid BSE fine carried for over five years, with repeated ROC show-cause notices Major - BSE imposed a fine of ₹1,07,380 on 04/08/2020, reduced to ₹56,640 (including GST) via email dated 23/04/2021, and the fine remained undeposited as of the FY2025-26 Annual Report date. The Registrar of Companies issued show-cause notices dated 01/06/2021, 22/07/2021, and 28/10/2021, with replies submitted and no notice received after a personal hearing granted 24/12/2021. During FY2025-26, the company received notices for personal hearings dated 14-07-2025 referencing the 28/10/2021 show-cause notices, and an adjudication order dated 04-11-2025, against which it filed an appeal before the Regional Director, Southern Region, MCA, Hyderabad.
  3. Six term loans of ₹16.25 crore are personally guaranteed by directors, including one with unquantified defaults Major - A term loan of ₹3 crore taken 02.02.2023 from Maheswari Souharda Credit Co-operative Society Ltd carries a default status of "Not ascertained" in the FY2025-26 annual report. The FY2024-25 auditor's report states the amount of defaults was "not quantified due to difficulty in calculation". As of FY2025-26, the company has six term loans outstanding, ₹3 crore, ₹2.4 crore, ₹3.35 crore, ₹3 crore, ₹2.5 crore, and ₹2 crore, all personally guaranteed by Rajgopal Gilada & Sampatkumar Gilada.
  4. Promoter family holds all executive positions, with frequent independent director turnover Major - Mr. Rajgopal Gilada (Managing Director), Mrs. Sangeeta Gilada (CEO), Mr. Sampathkumar Gilada (Director), and Mrs. Pallavi Gilada (CFO) signed the FY2024-25 standalone financial statements, with all four holding the Gilada surname. Percentage increase in remuneration of each director, CFO, CEO, Company Secretary or Manager was reported as "Nil" for FY2025-26, FY2024-25, and FY2023-24. Independent Directors changed repeatedly, and Company Secretaries and Compliance Officers changed five times between 2019 and 2025.
  5. Statutory auditor replaced after a single 5-year term, following predecessor's mid-term resignation Major - M/s. Gnanoba & Bhat resigned as statutory auditor effective 13.08.2020, citing remuneration not commensurate with audit effort. M/s. Bennur Nagaraja & Co was appointed to fill the casual vacancy and later confirmed for 5 years at the 27th AGM held 30 September 2021. The FY2025-26 Annual Report proposes appointing M/s Venkatesh & Raghavendra for 5 years, replacing Bennur Nagaraja & Co at the end of its term.
  6. Revenue grew 94% in five years while disclosed overdue loans contradict reported asset quality Major - Revenue grew from ₹3.75 crore in FY22 to ₹7.26 crore in FY26, a 94% cumulative increase. The company reported zero receivables days for both FY24 and FY25, while simultaneously disclosing ₹5,705,397 in loans overdue beyond 365 days as at 31 March 2023. As at 31 March 2023, Stage 1 loans aggregating ₹5,529,701 had identified delinquencies in repayment.
  7. Same 3.82 crore revaluation reserve carried for over a decade, with deferred tax repeatedly declined Major - Land at Kalaburagi was revalued on 25/03/2024 to ₹3,85,00,000, with a revaluation reserve of 3.82 crore created in FY 2011-12 carried forward in FY2025-26. In FY2021-22, a depreciation amount of ₹43,75,000 was NOT recognised as impairment of investment in property. Deferred tax liability/asset provision was NOT made under Ind AS 12 in FY2025-26, FY2024-25, FY2023-24, FY2021-22 and FY2020-21, each time stated as not material.
  8. No subsidiaries, associates, or joint ventures reported across all years reviewed Clean - Gilada Finance & Investments Ltd reported it had "no subsidiaries, associates, or joint ventures during the year" in FY2025-26. The independent auditor confirmed in FY2023-24 that "company has no subsidiaries, joint ventures or associate companies, so question of raising loans on pledge of their securities does not arise". No consolidated financial statements are required, as confirmed in FY2024-25 and FY2023-24.

What to watch

Bottom line: This is a small, family-run finance company with a clean audit opinion but a compliance record that is consistently at odds with it. The risk is not hidden in the numbers, it is in the gaps: loans with no written terms, defaults that are not quantified, and a fine that has gone unpaid for five years. Watch whether the appeal against the ROC order resolves, whether the disputed tax demand is settled, and whether the proposed new auditor changes anything.