Jasch Gauging Technologies holds a clean audit record and carries no debt defaults, but its earnings have not turned into cash for five years running. The entire financial history rests on an NCLT demerger that created restated comparatives, and a land title transfer remained pending for over two years after the scheme became effective.
Key findings
- Operating cash flow is deeply disconnected from reported profit
Major- Over the five years FY2022-FY2026, cumulative operating cash flow was ₹-32 crore against cumulative profit of ₹62 crore, a conversion ratio of -0.51x. In FY2026, cash from operations was just ₹0.79 crore on profit of ₹14.74 crore, and free cash flow was negative at ₹-0.39 crore. The Board nonetheless declared an interim dividend of ₹10 per share in November 2025, while return on capital employed slid from 27.88% in FY2024 to 20.10% in FY2026. - The entire financial history rests on an NCLT demerger with an 18-month gap between appointed and effective dates
Major- The Scheme of Arrangement was approved by NCLT on 12.09.2023 with an appointed date of 01.04.2022, becoming effective from 30.09.2023. FY2023-24 standalone financials are labelled "Restated Standalone Ind AS" and treat the demerged business as if the company had carried it on from 01.04.2022. Transfer of the title deed for land and building in favour of the company was approved by the Directorate of Urban Local Bodies Haryana, Panchkula only on 06.03.2026, and the company stated it "will approach the Sub-registrar to complete the remaining process." - Promoter family dominates board and executive roles with remuneration approved despite profit inadequacy
Minor- Shri Jai Kishan Garg and his son Shri Manish Garg are the two executive directors; their re-appointments from 01-10-2026 carry basic pay of Rs. 14,14,000 and Rs. 10,05,000 per month "notwithstanding any loss or inadequacy of profit." The explanatory statement notes that whole-time directors' remuneration of Rs. 3.98 crore represented 16.66% of net profit before tax of Rs. 23.89 crore as calculated under Section 197, exceeding the 10% limit. Shri Rishit Garg, grandson of the Managing Director, was appointed as Additional Director on 25-01-2025 at age 24 and resigned on 19-04-2025. - Clean audit opinions but self-constructed buildings remain untitled and statutory dues were in arrears
Minor- Undisputed statutory dues were in arrears for more than six months as at March 31, 2026 and March 31, 2025, though none existed as at March 31, 2024. The company was not declared a wilful defaulter and has not defaulted on bank repayments in any of the three years. No cash losses were incurred in FY2026 or FY2025. - One BSE fine for late RPT filing; otherwise no regulatory actions over three years
Minor- On 13 December 2024, BSE Ltd imposed a fine for delay in submission of related party transactions for the half year ended 30 September 2024; the company paid the fine. For the three years covered by the FY2024-25 and FY2023-24 annual reports, no fines or strictures were imposed by any statutory authority related to capital markets.
What to watch
- Executive director re-appointments. Re-appointment of Shri Jai Kishan Garg and Shri Manish Garg for three years from 01-10-2026, with Board authority to revise basic pay up to Rs. 20,00,000 and Rs. 15,00,000 per month respectively, subject to shareholder approval at the ensuing AGM.
- Land title registration. Completion of the conveyance deed for self-constructed buildings at the Sub-registrar office following the 06.03.2026 approval, no completion date stated as of the FY2025-26 Annual Report.
Bottom line: This is a disclosed and audited record with no debt defaults and no fraud findings. The risk sits in two places: cash flow that has not tracked profit for five years, and a financial history built on restated comparatives from a demerger whose land title transfer lingered until March 2026. Watch whether the Sub-registrar process closes and whether the new executive director terms bring cash conversion closer to reported earnings.