Premco Global’s seven-year run of unqualified audit opinions sits alongside a structural gap: the subsidiary that drives the majority of group assets and income is audited by another firm on a lagged basis, the group auditor has never identified a Key Audit Matter, and the fixed-asset register remains incomplete year after year. The record also carries a sharp cash-flow swing built on asset sales, dividends that outrun consolidated profit, and a promoter family that holds every executive seat with pay guaranteed even in a loss.
Key findings
- Consolidated operating cash flow swung sharply positive in FY2026, but the swing was driven by working-capital inflows and large asset sales, while dividends exceeded consolidated PAT in multiple years
Major- Consolidated CFO jumped from ₹5.27 crore in FY2025 to ₹18.47 crore in FY2026, a 3.5× increase, while consolidated PAT fell from ₹9.51 crore to ₹5.99 crore over the same period. Consolidated net working capital contributed an inflow of ₹9.25 crore in FY2026 after an outflow of ₹8.07 crore in FY2025, a swing of roughly ₹17.32 crore that explains the majority of the CFO increase. Sale of property, plant and equipment rose to ₹4.85 crore and sale of investments to ₹8.76 crore in FY2026, while the company paid dividends of ₹14.54 crore against consolidated PAT of ₹5.99 crore. - The promoter family holds all four executive director roles and secured shareholder approval for guaranteed minimum remuneration up to ₹4.37 crore p.a. even if the company reports losses
Major- The Board’s four Executive Directors, all from the promoter family, are Mr. Ashok Harjani (MD), Mrs. Sonia Harjani (ED), Mr. Lokesh Harjani (WTD), and Mrs. Nisha Harjani (ED & CFO), with inter-se relationships disclosed among all four. At the 41st AGM on September 3, 2025, shareholders passed special resolutions guaranteeing minimum annual remuneration of up to ₹1.90 crore, ₹1.58 crore, ₹0.81 crore, and ₹0.08 crore respectively, even in case of loss or inadequacy of profits. The Company Secretary position saw eight individuals serve across nine appointment periods between FY2019-20 and FY2025-26, with the most recent appointment effective from 11th May 2026. - A leave encashment policy change produced a stated employee-benefit expense increase of 39,018.22 crore in FY2026
Minor- The Company changed its leave encashment entitlement policy from last drawn gross salary to last drawn basic salary upon notification of four Labour Codes on November 21, 2025, resulting in a net increase in Employee Benefits expense of 39,018.22 crore for FY2025-26 as stated in the filing. The Company also paid a one-time ex-gratia of ₹94.05 lakhs to contractual employees upon moving manufacturing operations from the Palghar factory, disclosed as an Exceptional item, and recognised a loss on FVTPL investments of ₹250.07 lakhs in FY2026. - Contingent liabilities are small and routine, with the one large income-tax dispute that appeared in FY2022-23 substantially resolved by FY2024-25
Clean- Claims against the company not acknowledged as debts for income tax liability stood at ₹1.27 lakhs in FY2025-26, down from a peak of ₹12.34 crore in FY2022-23. A GST liability of ₹1.02 crore disclosed as contingent in FY2022-23 was reduced to nil by FY2023-24, and capital commitments remaining to be executed were nil in FY2025-26.
What to watch
- PPE register completion. The Property, Plant and Equipment register remains in a “continuous process of updating” with no completion date stated as of the FY2025-26 Annual Report.
- TDS demands. Outstanding TDS demands from the Central Processing Center aggregating ₹1.26 lakhs were still being assessed for their nature as of the audit report dated May 11, 2026.
- Subsidiary impairment and strategy. Management continues to assess strategic options for PGVCL and the Board considered the need for impairment assessment as disclosed in the FY2025-26 Annual Report.
- Dividend sustainability. Whether the FY2026 final dividend of ₹2 per share is approved at the 42nd AGM scheduled on September 2, 2026, and whether total dividend payouts continue to exceed consolidated PAT.
- Newspaper advertisement compliance. The company states it is taking steps to align with the Regulation 47 requirement, but no compliance deadline is given; status should be checked in the next secretarial audit for the period ending March 31, 2027.
Bottom line: This is a disclosed record with seven years of clean audit opinions and contingent liabilities that have shrunk to routine levels. The character of the risk is concentration: a single foreign subsidiary, audited by another firm, now drives the majority of group assets and income and has swung to material profitability just as the Board flags an impairment assessment need. The cash-flow recovery in FY2026 leans heavily on working-capital reversals and asset sales, while dividends continue to outstrip consolidated earnings. Watch the subsidiary’s strategic direction and whether the fixed-asset register ever reaches completion.