Maxgrow India Ltd Forensic Report - SOIC x StockScans Report

as of Sep 2026

Maxgrow India Ltd's record is dominated by the aftermath of a 2021-2024 insolvency: the listed holding company now has no operations of its own, all revenue and profit sit in a single Seychelles subsidiary, and the audit trail runs from four consecutive disclaimers during the resolution process to a qualified FY2026 opinion. The auditor could not verify a small debenture investment, overdue receivables, or internal controls that did not exist for the year. The group also cycled through four statutory auditors in under three years, with two resigning mid-engagement.

Key findings

  1. All business now sits in one Seychelles subsidiary, with a Section 186 breach Major - Maxgrow had no subsidiary as of March 31, 2024, then acquired 100% of PP Metallix Ltd (Seychelles) effective December 19, 2024. The holding company carried out no business operations in the September 2025 quarter, with the group's performance entirely derived from the foreign subsidiary. The investment of ₹1,789.20 crore exceeded the Section 186 limit by ₹21.88 crore without shareholder approval, and the subsidiary failed to appoint a Common Independent Director.
  2. Audit history: four disclaimers, then a qualified FY2026 opinion Major - The FY2020-21 opinion was the first of four consecutive disclaimers, citing that resolution-plan adjustments were not considered. The FY2025-26 opinion was qualified because the auditor could not verify a ₹75.10 lakh OCD investment made without independent valuation, and ₹6.14 crore of receivables were overdue with no recovery steps initiated. Internal financial controls were qualified for the year: no internal auditor was appointed, and the accounting software did not maintain an effective audit trail.
  3. Four statutory auditors in under three years, two resigning mid-engagement Major - ASAT & Associates resigned on May 15, 2025 without issuing review reports for the December 2024 and March 2025 quarters. R.B. Jain & Associates was appointed for a five-year term at the June 1, 2026 AGM, then resigned on August 14, 2026. BNK & Associates was appointed on August 27, 2026 to fill the vacancy.
  4. A six-year-old related-party loan, fund routing through intermediaries, and OCDs backed by related-party guarantees Major - A ₹2.55 crore loan to Unnao Trading Pvt Ltd, a company in which an erstwhile director was interested, has remained unchanged since FY2019-20. The FY2025-26 auditor's report states ₹20 lakhs were advanced to an intermediary to lend to unnamed ultimate beneficiaries, and ₹55.55 lakhs were received from two funding parties with a similar understanding. The company acquired OCDs in Ultravolt Power backed by guarantees from related wind-power entities aggregating ₹71.46 crore.
  5. CIRP-era non-compliances: late filings up to 573 days, frozen promoter holding, FEMA violation Major - The Annual Secretarial Compliance Report for FY2023 was filed 573 days late, and audited results for March 2023 were filed 457 days late. BSE froze promoter shareholdings, and the company did not file Form FC-GPR with RBI for FDI from its Singapore parent. No SEBI penalties were imposed in the last three years, and exchange fines were waived.
  6. Resolution plan reshaped capital via a ₹1,829 crore share swap; tax rate at -8.3% Major - The company issued 3.91 crore shares at a premium to Metal Industrial Pte Ltd for non-cash consideration of ₹1,829.12 crore, and cancelled 3.54 crore public shares plus 1.50 crore promoter shares. A capital reserve created from cancellations is not available for dividends. Consolidated PAT was ₹581 crore versus a standalone loss of ₹0.63 crore, with an average effective tax rate of -8.3% over 4 years versus the statutory 25.2%.
  7. Investments in two subsidiaries written down to nil; ₹8.68 crore impairment on an associate Major - The company wrote down 100% of its investments in Radha Madhav Research and Worldwide Industries to nil as at March 31, 2026, concluding no reliable realised value existed. It recognised a ₹8.68 crore provision on associate Technopoint Mercantile because no valuation report was received despite follow-up.
  8. Revenue is a consolidated-subsidiary story; receivables up 37% with a flat credit-loss provision Major - The standalone company has no revenue from operations. Consolidated trade receivables grew 37% year-on-year to 2,877.09 crore, while the expected credit loss allowance stayed flat at 2.57 crore. Standalone trade payables ageing shows 1.53 crore outstanding for more than 3 years as at March 31, 2025.

What to watch

Bottom line: This is a post-insolvency record with a clean slate on penalties but a broken audit trail: four disclaimers, a qualified opinion, and a rapid churn of auditors. The risk sits in the structure, all revenue and profit in one foreign subsidiary, with the Indian holding company a shell, and in the related-party fund movements that the auditor could not trace to named beneficiaries. Watch the September AGM vote and whether the pending disclosures and valuation reports actually arrive.