Goblin India’s record is not one of isolated slips but of a control environment that has been breaking down in plain sight for years. The audit opinion has been qualified in four of the last five years, the FY26 internal-control opinion is adverse, and the auditor now flags material uncertainty over the company’s ability to pay its bills. Against that backdrop, the board is asking shareholders to approve ₹25 crore of loans and goods transfers to entities tied to a past executive director, a sum equal to 45% of consolidated turnover, while promoter pledges rise and a company asset was held in the managing director’s name.
Key findings
- Audit opinions have deteriorated to an adverse internal-control ruling
Critical- The standalone audit opinion was qualified in FY22, FY23, FY24, and FY26, and the FY26 opinion on internal financial controls over financial reporting is adverse. The FY26 qualification stems from the company not providing GST records for verification and not filing its income-tax or TDS returns, with unpaid TDS liabilities and no provision for interest or penalty. The CARO report adds that quarterly bank filings for working capital limits do not agree with the books, and a material uncertainty exists over the company’s ability to meet its liabilities within one year. - A ₹25 Cr related-party proposal reaches 45% of turnover, and a prior property deal ran through a director’s loan account
Major- For FY2026-27, the board seeks a special resolution to approve transactions with Renova Private Limited, GT Hasten Industries LLP, and GT Bags Proprietorship firm up to an aggregate ₹25,00,00,000 per year, including unsecured loans, representing 45.14% of the preceding year’s consolidated turnover. Mr. Yatin Hasmukhlal Doshi, past Executive Director, is the proprietor of GT Bags, a director of Renova, and was a Designated Partner in GT Hasten Industries. Separately, the FY2024-25 consolidated auditor’s report contains an Emphasis of Matter, a special call-out in the audit report: ₹2.5 crore invested in immovable property was held in a director’s name and later transferred to that director’s loan account when the company entered an agreement to sell the property through him. - The promoter-controlled board repeatedly breached governance rules on independent directors and managerial pay
Major- The company operated with only one independent director for two separate stretches in FY2021-22, from 1 April 2021 to 28 May 2021 and from 10 November 2021 to 31 March 2022, against the statutory minimum of two. The auditor issued a qualified opinion in FY2023-24 because prior lender approval required under Section 197 was not obtained for managerial remuneration. On 17 June 2025, promoter Manojkumar Jagdishprasad Choukhany created a fresh pledge of 1,000,000 shares, 7.24% of total share capital, against a ₹1.50 crore loan. - Secretarial non-compliances span six years and blocked a further public issue
Major- The Secretarial Auditor reported non-compliances with SEBI LODR Regulations in every year from FY2022 through FY2026. In FY2025, the stock exchange rejected the company’s in-principle application for a Further Public Issue on compliance grounds. In FY2026, the company missed RBI deadlines for the Annual Performance Report and Form FLA for its French subsidiary under FEMA Regulations. - Aged receivables that management refuses to impair undermine revenue quality
Major- The auditor qualified the FY24 opinion because trade receivables of ₹31.52 crore included ₹3.66 crore outstanding more than three years with no provision, contrary to AS 29. Receivable days reached 180 in FY26, having been 211 in FY25, 259 in FY24, and 305 in FY23. Standalone revenue fell 62% from ₹33.69 crore in FY22 to ₹12.76 crore in FY23 before recovering to ₹39.04 crore in FY26. - The company still reports under superseded Indian GAAP and books loan-settlement gains as extraordinary income
Major- Goblin India Ltd, listed on BSE since 15 October 2019, prepares its financial statements under Indian GAAP rather than Ind AS in every year from FY2020 through FY2026. In FY2025, it recognised ₹60.26 lakh as an extraordinary item on a one-time settlement of a GECL loan from Deutsche Bank, with the auditor drawing an Emphasis of Matter. In FY2022, other income included ₹1.32 crore of trading liabilities written off, which the board attributed to goods returned for quality issues. - A never-audited French subsidiary is being exited while a new subsidiary was formed to acquire an LLP for ₹18.50 Cr
Minor- The books of Goblin France SARL have never been audited; the auditor has relied on management-provided information for consolidation in every year from FY2022-23 to FY2025-26. On 12 July 2023, the board approved disinvestment of the entire stake, and shareholders approved it on 8 August 2023. Meanwhile, a new Indian subsidiary incorporated on 7 April 2023 was formed to acquire GT Hasten Industries LLP for ₹18.50 crore.
What to watch
- Material uncertainty on liability coverage. The FY26 CARO report, signed with the annual report, flags a material uncertainty over the company’s ability to meet its liabilities as they fall due within one year.
- ₹25 Cr RPT resolution. The 37th AGM notice dated 8 August 2026 seeks shareholder approval for the ₹25 crore related-party transaction resolution for FY2026-27.
- Managerial remuneration and independent director vote. The 37th AGM scheduled on 31 August 2026 will vote on increasing overall managerial remuneration beyond 11% of net profit and on appointing Ms. Kinjal Parmar as independent director.
- Unfiled tax returns and unpaid TDS. The FY26 qualified opinion notes the Income Tax Return for AY 2025-26 and TDS returns for FY2025-26 had not been filed, with crystallising interest and penalty on unpaid TDS liabilities.
- ₹2.73 Cr GST demand. The GST demand under appeal, disclosed in the FY2024-25 annual report, remains unresolved.
- ₹88 lakh income-tax liability. The undisputed income-tax liability for AY 2020-21, disclosed in the FY2024-25 annual report, awaits settlement and final reconciliation.
- ₹2.5 Cr director’s loan account. The balance arising from the immovable property transaction flagged in the FY2024-25 consolidated auditor’s report remains outstanding.
Bottom line: This is a record of control failure that has moved from the books to the bank. The FY26 audit opinion is qualified, the internal-control opinion is adverse, and the CARO report flags a material uncertainty over the company’s ability to meet its liabilities within one year. The governance structure, a promoter board with a history of composition breaches, rising pledges, and an asset held in the managing director’s name, is now asking shareholders to approve ₹25 crore of related-party exposure. Watch the AGM vote on 31 August 2026, and watch whether the tax filings and the director’s loan account get resolved.