Qgo Finance's record carries six consecutive clean audit opinions, but the filings repeatedly describe a company whose reported profits, related-party balances, and borrowing disclosures do not line up with each other. The most important threads: ₹19.30 crore of related-party advances the board calls immaterial, NCD issuance that dwarfs reported debt, and nine years of cumulative operating cash flow that has not backed reported profit.
Key findings
- Related-party advances of ₹19.30 crore persist while the board calls them immaterial
Major- Qgo Finance reported related-party outstanding advances of 3.3 crore and 16 crore, totalling 19.3 crore (₹19.30 crore), at FY2025-26 year-end, against 19.45 crore the previous year. The board stated all related-party transactions were in the ordinary course of business, at arm's length, not material, and that no Form AOC-2 disclosure was required. The FY2023-24 disclosure noted parties were identified "by the management on the basis of information available," a statement the auditors said they relied upon. - NCD issuance of ₹32.43 crore in FY2026 against ₹1.11 crore of reported borrowings
Major- Qgo Finance raised ₹27,50,00,000 in unsecured and ₹4,93,00,000 in secured unlisted NCDs during FY2025-26, while total outstanding borrowings at 31 March 2026 were only ₹1,11,25,995, down 54.18% from ₹2,42,85,533 a year earlier. In FY2024-25, the company raised ₹11,00,00,000 through private placement of unsecured NCDs yet its liquidity-risk note stated it had "no outstanding borrowings" as of 31 March 2025. NCD announcements from September 2020 through August 2026 consistently disclose a 12% p.a. coupon payable monthly. - Nine years of cumulative operating cash flow of ₹0 crore against ₹13 crore of profit
Major- Cumulative CFO over the nine years through FY2026 was ₹0 crore against cumulative PAT of ₹13 crore, a CFO/PAT ratio of 0.02x. FY2026 standalone CFO was negative ₹2.07 crore against PAT of ₹3.37 crore, and FY2024 CFO was negative ₹1.80 crore against PAT of ₹2.65 crore. The board declared four interim dividends for FY2025-26 totalling ₹41,71,680, and management states capitalisation of expenses into CWIP is expected "in the next few months". - Promoter-MD's remuneration raised while her holding fell from 73.04% to 55.47%
Major- Rachana Singi's promoter holding declined from 73.04% (50,78,600 shares) on 24 September 2020 to 55.47% in the latest snapshot. Her remuneration was revised to ₹30,00,000 per annum effective 1 May 2025, with the AGM resolution seeking consent for payment exceeding the 5% of net profits limit under Section 197(1). On 15 November 2022, Singi transferred 2,00,000 shares (2.88%) to her sister Deepika Nath, who was appointed Non-Executive Non-Independent Director effective 30 January 2023. - Accounting-policy choices create opacity around reported profit
Minor- Qgo Finance changed its depreciation policy in FY2020-21 from Schedule II useful lives to management-estimated useful lives, including 10 years for motor cars. Its Ind AS 116 transition on 1 September 2021 recognised right-of-use assets and lease liabilities without restating comparatives. The FY2024-25 deferred tax note contains specific amounts, including a total timing difference of (13.97) lakhs as at 31-03-2025, but lacks an effective-rate reconciliation. - Six clean opinions with a recurring audit-trail gap on fixed-asset and payroll records
Minor- R. C. Reshamwala & Co. issued an unqualified opinion for FY2025-26 with no Key Audit Matters. The auditor's report states the accounting software's audit trail feature was not enabled for Fixed Asset and payroll records because those records are not maintained in the accounting software. The same exception appeared in FY2024-25, while the FY2023-24 report under the predecessor auditor reported no such gap. - Statutory auditor rotated on schedule with no adverse actions across the record
Clean- Subramaniam Bengali & Associates served five years from FY2019-20 through FY2023-24 with unmodified opinions in each year. R C Reshamwala & Co. was appointed for five years from the 31st AGM in September 2024, approved by shareholders with 100.00% of votes polled in favour. CARO reports for FY2025-26 and FY2024-25 state no resignation of statutory auditors occurred during either year.
What to watch
- MD re-appointment vote. The FY2025-26 AGM resolution re-appoints Rachana Singi for five years from 1 August 2026, seeking consent for remuneration exceeding Section 197(1) limits.
- Promoter holding disclosure. Rachana Singi acquired 3,48,000 shares (5.01%) off-market on 13 February 2026; the next disclosure will show whether the 55.47% holding changes.
- Related-party balances. The FY2026-27 annual report will show whether the ₹19.30 crore of outstanding advances at 31 March 2026 are reduced.
- CWIP capitalisation. Management stated completion is expected "in the next few months" in the FY2025-26 Annual Report.
- Interim dividends. The four FY2025-26 interim dividends totalling ₹41,71,680 require member approval at the AGM.
Bottom line: This is an audited record with clean opinions and a properly rotated auditor, but the substance of the filings is a company whose cash generation has not backed its reported profit over nine years, whose related-party balances are large enough to demand disclosure yet are called immaterial, and whose borrowing disclosures do not reconcile with its own NCD issuance. The risk is a pattern of under-disclosure around related parties and debt. Watch the AGM vote on the MD's re-appointment, the next promoter holding disclosure, and whether the ₹19.30 crore of related-party advances get repaid.