Hind Aluminium’s record is defined by a single statutory violation that its own governance disclosures deny: the company conducted non-banking financial activity without the RBI registration the law requires, as flagged in the FY2025-26 CARO report. Around that sits a five-year pattern of disclaimed internal controls, a revenue collapse from ₹96 crore to ₹7 crore, and a promoter group that has consolidated its hold while the business shrank to a shell.
Key findings
- The company conducted unregistered NBFC activity in FY2025-26 while governance reports denied regulatory action
Critical- The statutory auditor’s CARO report for FY2025-26 states the company conducted Non-Banking Financial activity requiring a Certificate of Registration from RBI under Section 45-IA of the RBI Act, 1934, and has not obtained one. The same year’s Corporate Governance report states there were no penalties or strictures imposed by any statutory authority on capital markets matters during the last three years. The Board’s Report adds that no material orders were passed by regulators impacting the company as a going concern, and governance reports for FY2021-22, FY2022-23, and FY2023-24 each repeat the same denial of non-compliances. - The auditor has disclaimed any opinion on internal financial controls for five straight years while giving clean opinions on the numbers
Major- The statutory auditor issued an unqualified opinion on the standalone and consolidated financial statements every year from FY2021 through FY2026. Over the same period, the auditor issued a Disclaimer of Opinion on the adequacy and operating effectiveness of Internal Financial Controls over Financial Reporting, stating management’s information was not complete to enable the determination. The CARO report for FY2026 notes that records of Property, Plant & Equipment and intangible assets “need to be updated,” a finding repeated in FY2024, FY2023, and FY2022. The auditor included an Emphasis of Matter, a special call-out in the audit report, in FY2024 and FY2023 stating the company phased out all manufacturing at its Silvassa units due to a complete lack of working capital and is exploring a new line of business. - Promoter family tightened control through inter-se transfers, a board reconstitution, and a 167% MD pay raise while losses continued
Major- Promoter and promoter group shareholding remained at 66.47% from FY2024 to FY2026, with zero pledge. In July-August 2025, three promoter-group entities transferred their entire holdings of 7,71,636 shares (12.25%) to two other promoter-group members via inter-se transfers, reducing the three entities to nil. On 30 May 2024, three independent directors resigned simultaneously, and the board appointed Ambarish Daga as an Additional Independent Director for five years the same day. The FY2023-24 AGM notice sought approval to re-appoint Shailesh Daga as Managing Director for three years at up to ₹10,00,000 per month, a 167% increase from his previous ₹3,75,000 per month, invoking Schedule V limits due to inadequate profits. The company reported net losses in five of the six years from FY2021 through FY2026; the board cited “post Covid consequences” for the inadequate profits. The board has not paid sitting fees to any director since at least FY2020-21, a decision continuing through FY2025-26. - Revenue collapsed from ₹96 crore to ₹7 crore while aged receivables were cleaned up by FY25
Major- Standalone revenue from operations fell from ₹95.68 crore in FY21 to ₹24.30 crore in FY22, ₹3.10 crore in FY23, ₹1.33 crore in FY24, ₹3.07 crore in FY25, and ₹7.21 crore in FY26. Trade receivables exceeding 180 days as a percentage of total trade receivables stood at 59.72% as at 31 March 2021, 88.05% as at 31 March 2022, 30.75% as at 31 March 2023, and 28.27% as at 31 March 2024. The company reported zero outstanding trade receivables due beyond 180 days as at the FY25 and FY26 year-ends. Receivable days rose from 89 in FY24 to 131 in FY25 and 270 in FY26, a 106% year-on-year increase in FY26. The Days Sales in Receivables Index reached 2.07 in FY26, meaning the receivables-to-revenue ratio rose 107% year-on-year. - The group has shrunk to a single unaudited associate that contributes a material share of profit based entirely on management information
Major- The group had two subsidiaries and one joint venture as at 31 March 2022, reducing to one subsidiary and one joint venture by 31 March 2024, and to zero subsidiaries and one associate by 31 March 2026. Hind Aluminium Industries (Kenya) Limited ceased to be a subsidiary during FY2023-24, with the disposal completed on 16 November 2023. Hind Power Products Private Limited, a wholly owned subsidiary, was struck off during FY2025-26 after the company applied for strike-off on 12 August 2025, citing it was non-operational. The consolidated financial statements for FY2025-26 include an unaudited associate, Associated Industries Limited LLC (SFZ) - Oman, whose share of profit was ₹8.52 crore for the year ended 31 March 2026, and whose financial statements were not audited or reviewed by any auditor. - Operating cash flow has been persistently negative, no dividend has been paid for six years, and the parent now holds over half its assets in financial investments
Major- The Board has not recommended any dividend for any financial year from FY2020-21 through FY2025-26. Consolidated operating cash flow was negative ₹16.75 crore in FY26, negative ₹3.19 crore in FY25, negative ₹3.44 crore in FY24, and negative ₹0.10 crore in FY23, while consolidated PAT was ₹-2.82 crore, ₹-2.26 crore, ₹6.63 crore, and ₹-4.26 crore respectively. Standalone operating cash flow was negative ₹16.75 crore in FY26 against standalone PAT of ₹4.19 crore. The parent company’s financial assets and financial income exceed 50% of total assets and total income respectively, which management states is exceptional as idle funds are parked in investments while the company awaits business opportunities. ROCE was -1.14% in FY26, 0.72% in FY25, 7.98% in FY24, and -5.85% in FY23. - No fixed-asset impairment recognised in four years despite sustained operating losses
Minor- Hind Aluminium acquired the undertaking of Nirav Commercials Limited (Elessar Focchi Division) on a slump-sale basis with a record date of 31 March 2026, for consideration of ₹1.25 crore, recognising goodwill of ₹29.66 lakhs. The company stated no impairment of fixed assets has been recognised in FY26, FY24, FY22, and FY21, omitting impairment columns from the PPE schedule in each of those years. Standalone operating profit margin was negative in each of the last five fiscal years: FY22 -9.21%, FY23 -504%, FY24 -381%, FY25 -62.89%, and FY26 -56.21%.
What to watch
- RBI enforcement. Whether RBI takes enforcement action on the non-registration under Section 45-IA of the RBI Act, 1934, as flagged in the FY2025-26 CARO report.
- Internal controls opinion. The auditor’s Disclaimer of Opinion on Internal Financial Controls has persisted for five consecutive years through FY2026; the next audit report will show whether management provides complete information to enable an opinion.
- MD term expiry. Shailesh Daga’s current term as Managing Director expires 31 May 2027; any renewal or remuneration revision will require shareholder approval.
- Acquisition execution. Execution of customer orders aggregating \~₹4 crore taken over in the Nirav Commercials acquisition, expected in FY2026-27.
- Goodwill impairment. Impairment assessment of the ₹29.66 lakhs goodwill recognised from the Nirav Commercials Limited acquisition, in the next reporting period following the FY2025-26 Annual Report.
Bottom line: This is a record of a company that has stopped being what it was, a manufacturer, and has not yet become what it claims to be. The auditor’s clean opinion on the financial statements sits alongside a five-year refusal to opine on internal controls and a statutory finding that the company is running an unregistered NBFC. The promoter group has tightened its hold while the business shrank, cash flow stayed negative, and governance disclosures repeatedly denied regulatory actions even as the auditor flagged unregistered NBFC activity. Watch the RBI’s next move, and watch whether the next audit report breaks the five-year streak of disclaimed controls.