Jhandewalas Foods' record is defined by one fact: every audit opinion since FY2021 has been qualified. The company faces an insolvency proceeding, multiple bank recovery suits, and a decade of disputed tax demands, while a ₹7.04 crore non-cash property settlement with related parties remains unregistered in the company's name. Reported profits have been shaped by large non-operating credits, and ₹3.93 crore of preferential-allotment funds were routed to directors' relatives without shareholder approval.
Key findings
- CIRP admission, bank recovery suits, and a decade of disputed tax demands, with no NPA interest provision
Critical- NCLT Jaipur admitted an insolvency petition against the company on 04 Jul 2025; NCLAT granted a stay on 15 Jul 2025 and the appeal remains pending, while the MCA portal reflects the company's status as "Under Corporate Insolvency Resolution Process (CIRP)" as at 31 Mar 2026. Axis Bank and SBI recovery suits at DRT Jaipur remain pending, and SBI issued a SARFAESI notice dated 25 Nov 2019 after the working capital loan of ₹31.19 crore was classified as NPA on 28 Oct 2019. Disputed income tax demands of ₹1,00,00,000 each are pending before CIT (Appeals) for seven assessment years from AY 2018-19 through AY 2024-25, and disputed GST demands of ₹1,00,00,000 each are pending before Commissioner (Appeals) for nine financial years from FY 2017-18 through FY 2025-26. - Preferential-allotment funds of ₹3.93 crore channelled to directors' relatives without shareholder approval
Major- Between June and September 2024, the company advanced loans of ₹3.93 crore to relatives of directors who were also preferential warrant allottees, without obtaining the special resolution required under Section 185(2) of the Companies Act, 2013. The Board acknowledged the non-compliance, stating the loans were "inadvertently advanced," and the Secretarial Auditor flagged concern regarding end use of funds and potential indirect funding of allotments. Separately, a ₹7.04 crore non-cash property settlement with related parties, ₹6,31,16,500 via agreements dated 5 September 2019 and ₹73,36,000 via an arbitration agreement dated 26 December 2020, remains unregistered in the company's name as of FY2025-26, and one property was sold back to the original owner at book value in FY2023-24. - Reported profits shaped by large non-operating credits and unquantified policy choices
Major- In FY2023-24, net profit of ₹24.22 crore included a loan write-back from an OTS of ₹18.49 crore and recovery of bad debts of ₹9.42 crore; excluding these, the company would have reported a net loss of ₹3.69 crore. In FY2024-25, the company reversed trade payables of ₹4.4 crore, of which ₹3.51 crore relates to vendors with ongoing legal disputes and is simultaneously disclosed as a contingent liability. No provision for leave encashment has been made in any year from FY2021-22 through FY2025-26, and the impact on profit or loss is stated as "not determined" in each period. - Regulatory escalation from filing penalties to a BSE trading suspension and an ongoing CIRP proceeding
Major- BSE suspended trading of the company's shares on 8 February 2022 due to non-filing of half-yearly financials under SEBI LODR Regulation 33, and the company paid a penalty of ₹14,40,780 related to the suspension. NCLT admitted an insolvency petition on 4 July 2025, NCLAT granted a stay on 15 July 2025, and the appeal remains pending as of the FY2025-26 annual report. As of 19 May 2026, the company had not filed Form PAS-3 with the ROC for the allotment of 19,94,712 equity shares, as required under Section 39(4) of the Companies Act, 2013. - Statutory auditor changed once in FY2023; secretarial audit report carries a date anomaly
Minor- M/s M S G & Associates served as statutory auditor from at least FY2019-20 through FY2022-23, and shareholders appointed M/s Jain Chowdhary & Co. at the 17th AGM in 2023 for a five-year block from FY2023-24 to FY2027-28. Despite the block appointment, the Board sought and obtained shareholder ratification for FY2025-26 at the 20th AGM noticed on 16 June 2026. The Secretarial Audit Report for FY2024-25 issued by M/s Sidhi Maheshwari & Associates is dated August 2, 2024, which precedes the end of the financial year it purports to cover. - Operating cash flow swung from deep negative to positive, but no dividends have ever been paid
Clean- Operating cash flow was negative ₹38.82 crore in FY2024-25 and turned positive to ₹9.55 crore in FY2025-26, while PAT remained nearly flat at ₹6.01 crore and ₹6.04 crore respectively. No dividend has been recommended or paid for any year from FY2020-21 through FY2025-26. Return on capital employed was 14.89% in FY2025-26 and 14.43% in FY2024-25, after an outlier 257% in FY2023-24 driven by other income of ₹9.44 crore.
What to watch
- Axis Bank DRT recovery suit. The suit remains pending as of the FY2026 audit report dated 18 May 2026.
- Non-filing of Form PAS-3. The company had not filed the statutory return for the allotment of 19,94,712 equity shares as of 19 May 2026.
Bottom line: This is a record of sustained audit dissent, unresolved lender action, and promoter-linked assets and advances that sit outside the company's legal ownership or proper approval. The insolvency stay keeps the company operating, but the qualified opinions, the ₹7.04 crore unregistered property settlement, and the ₹3.93 crore Section 185 violation are facts on the filed record, not contingent on the NCLAT outcome. Watch the NCLAT appeal, the Axis Bank recovery suit, and whether the promoter-held properties ever get registered in the company's name.