India Finsec Ltd Forensic Report - SOIC x StockScans Report

as of Sep 2026

India Finsec's record carries a SEBI restraint order from January 2021 and a routine auditor rotation, but the group's reported profit is concentrated almost entirely in one unlisted subsidiary whose disclosures have been blank for six years. The parent has surrendered its NBFC licence to become an unregistered Core Investment Company, while operating cash flow has been negative every year for at least five years against reported profits.

Key findings

  1. Operating cash flow negative every year for five years, no dividends paid Major - Standalone operating cash flow was ₹-121 crore in FY26 against PAT of ₹21.67 crore, and negative in each of the prior four years, ranging from -1.26x to -19.55x of PAT. The Board recommended no dividend on equity shares for FY2025-26, FY2021-22, and FY2020-21.
  2. Promoter pledge at 84.2% with zero-remuneration MD and director turnover Major - Promoter pledge stood at 84.16% of promoter holdings as of the latest reporting period, up from 71.15% one year earlier, with four fresh pledge events on 17 October 2023 totalling ₹44.87 crore. Managing Director Gopal Bansal drew Nil remuneration in FY2025-26 and was proposed to be paid Nil for his re-appointment from 16 January 2026 to 15 January 2031. Three independent directors resigned between September 2024 and July 2025, with one re-appointed within two months of resigning.
  3. Profit is a consolidated-subsidiary construct with no policy changes disclosed Major - Consolidated PAT of ₹23.19 crore versus standalone PAT of ₹0.03 crore places all profit at subsidiaries, while the parent converts to an unregistered CIC. Deferred tax assets grew from ₹421.82 thousand standalone in FY2021-22 to ₹19,733.38 thousand consolidated in FY2023-24. No material accounting-policy changes were disclosed across six years despite the structural transformation, and the FY2021-22 MD&A's "SIGNIFICANT CHANGES IN FINANCIAL RATIO" section is missing its ratio tables.
  4. SEBI restraint order in January 2021, appealed to SAT Minor - A SEBI Whole Time Member order dated 15 January 2021 restrained India Finsec from accessing the securities market for 18 months; the company appealed to SAT on 22 February 2021. The FY2020-21 annual report documents this restraint as a stricture, contradicting any claim of a clean record for that year. For FY2025-26, the company reported no penalties or strictures from Stock Exchange, SEBI, RBI or other statutory authorities.
  5. Auditor rotation on schedule with no adverse actions Clean - M/s V.N. Purohit & Co.'s term expired at the 28th AGM on 30 September 2022, and M/s Ajay Rattan & Co. was appointed to hold office until the 33rd AGM in 2027. The appointment passed with 99.9986% of votes in favour. CARO reports for FY2021-22, FY2022-23, and FY2025-26 state there was no resignation of the statutory auditor during the year.
  6. Revenue recognition policies consistently disclosed Clean - Standalone revenue follows Ind AS 115 with interest income recognised using the effective interest rate method. Consolidated policy states Ind AS 115 was applied effective 1 April 2018, with trade receivables exposure of Nil in FY2024-25. No adverse findings, disputes, or concentration issues surfaced in the filings.

What to watch

Bottom line: This is a disclosed and audited record with a regulatory history that includes a SEBI restraint order in January 2021, and a routine auditor rotation. The risk sits in the structure: all profit flows through an unlisted subsidiary whose disclosures have been blank for six years, while the parent reports negative operating cash flow and holds 84.2% of promoter shares pledged. Watch whether the IPO brings the subsidiary's numbers into the open, and whether the next AOC-1 finally carries entries.