Promact Plastis Ltd Forensic Report - SOIC x StockScans Report

as of Aug 2026

Promact Plastis Ltd's FY2025-26 accounts show a reported profit of ₹15.87 crore, but that figure is almost entirely other income of ₹19.84 crore, 103.3% of profit before tax, while the core business remains discontinued and revenue from operations is just ₹5.21 crore. The record also carries a ₹4.56 crore receivable that has been labelled "good" for at least six years, seven consecutive unqualified audit opinions despite persistent negative net worth, and a sharp unexplained collapse in reported borrowings.

Key findings

  1. Reported FY2026 profit is almost entirely other income Major - The company reported PAT of ₹15.87 crore against revenue of ₹5.21 crore, with other income of ₹19.84 crore representing 103.3% of profit before tax of ₹19 crore. The business is discontinued, earning only from trading, rent, and interest on advances, with segment reporting policy not considered. Retained earnings worsened from a restated ₹(924.91) lakh to ₹(997.33) lakh during the year.
  2. A ₹4.56 crore receivable has been carried as "good" for six years Major - The same Key Audit Matter, book debts recovery of ₹4.56 crore, an undisputed trade receivable considered good based on confirmation and a matter with the High Court, arising on high sea sales, appears in every annual report from FY2019-20 through FY2025-26. The receivable stood at 4.56 crore as at 31st March 2026, nearly unchanged from 4.56 crore a year earlier. The auditor has also flagged that the company's discontinued core activities result in non-generation of revenue from operations.
  3. Seven years of unqualified opinions despite negative net worth Major - Fenil P Shah & Associates issued an unqualified opinion for FY2025-26, dated 18/05/2026, with no qualification, reservation or adverse remark. The company had a cash loss of ₹65.89 lakh and negative net worth of ₹2.55 crore at year-end, with accounts prepared on a going concern basis. Negative net worth has persisted for at least seven years, from 1.92 crore in FY2021 to ₹2.55 crore in FY2026.
  4. Reported borrowings collapsed by 4.71 crore over three years Major - Current borrowings fell from 5.26 crore as at 31st March 2023 to ₹54.55 lakh as at 31st March 2026, a reduction of 4.71 crore. Net worth was negative at ₹2.85 crore and ₹1.95 crore in those intervening years, with accounts prepared on a going concern basis. The FY2024-25 Annual Report states the company "has not availed any Working Capital Facilities," after enjoying them from Sarvodaya Commercial Co-op Bank Ltd. in prior years.
  5. MD drew nil pay for four years, then a new contract grants up to ₹2,00,000 per month Major - Mr. Ankit J. Patel, Managing Director, drew no managerial remuneration during FY2021-22 through FY2024-25. His reappointment for 3 years from 17 July 2026 provides salary up to ₹2,00,000 per month plus perquisites, payable even in years of losses or inadequacy of profit. Two Independent Directors resigned w.e.f. 29th July 2026, and prior to resignation the Company had not received documentary evidence that either passed the mandatory Online Proficiency Self-Assessment Test.
  6. Related-party disclosures are boilerplate across seven years Major - The Board's Report for FY2020-21 through FY2025-26 states all related party transactions were in ordinary course of business and on arm's length basis, with no material transactions entered. Prabhu Ispat Pvt. Limited is disclosed as a related party with relationship "Relative" in the standalone financial statements for FY2022-23 through FY2025-26, without any transaction amounts. The company claimed Regulation 23(9) RPT disclosure was not applicable for FY2022-23, FY2023-24 and FY2024-25, citing negative net worth.
  7. Operating cash flow has repeatedly exceeded reported profits Major - In FY2025-26, net cash from operating activities was 4 crore against a reported PAT of ₹-0.72 crore, a CFO/PAT ratio of -5.56x. In FY2022-23, net cash from operating activities was 1.44 crore against a reported PAT of ₹0.52 crore, a ratio of 2.77x. No dividend was recommended for FY2024-25 "to conserve resources for working capital".
  8. A single-proprietor statutory auditor since FY2022-23 Minor - M/s. Fenil P. Shah & Associates, a sole proprietor firm, has signed the standalone financial statements as statutory auditor for FY2022-23 through FY2025-26. Audit fees were ₹40,000 for FY2022-23 and ₹50,000 for FY2021-22. Secretarial auditors were rotated twice in consecutive years: M/s. Nishant Pandya & Associates appointed for five years at the AGM held 22 September 2025, and M/s. Kashyap R. Mehta & Partners proposed for five years at the 42nd AGM noticed 18 August 2026.
  9. No subsidiaries, associates, or JVs in any year Clean - Promact Plastis reported having no subsidiaries, associates, or joint ventures as on 31st March in every year from 2020 through 2026. The company is not a Core Investment Company and not part of a Group with other CICs as per CARO clause 3(xvi) in FY2023-24.

What to watch

Bottom line: This is a disclosed and audited record, but the assurance is uniform while the underlying business has stopped. The profit is other income, the one large receivable has sat unchanged for six years, and borrowings have vanished without a disclosed source of replacement funding. The risk is that the clean opinions and boilerplate disclosures do not reflect the company's deteriorating financial reality. Watch the AGM votes on 18 August 2026, and whether the ₹4.56 crore receivable and the MD's new salary change the picture in the FY2026-27 report.