Rajvi Logitrade's record shows a company whose audited financials carry a going-concern warning and a qualified internal-controls opinion for four straight years, even as the auditor signed off on the accounts. The company's own filings describe a volatile business: revenue grew from ₹16.13 crore in FY23 to ₹96.67 crore in FY26, while operating cash flow swung from deeply negative to strongly positive, and the 39th AGM notice seeks approval for related-party transactions with RCC Limited for fleet/equipment purchase not exceeding ₹20 crore per annum and logistics services not exceeding ₹60 crore for FY2027-28. The most recent year shows a sharp improvement in cash conversion, but the pattern of auditor-flagged weaknesses and related-party reliance is the story.
Key findings
- Auditor flags going-concern risk and control weaknesses for four straight years
Critical- For FY2025-26, statutory auditor Prakash Tekwani & Associates issued an unqualified opinion and listed one Key Audit Matter: "Revenue Recognition". The report's CARO clause xix states the Company's ability to meet obligations depends on continuous financial support from management. The Internal Financial Controls opinion was qualified, "except for strengthening of internal audit function which we are informed is in process", the same wording used in FY2022-23, FY2023-24 and FY2024-25. The FY2022-23 and FY2021-22 reports each included a "Material Uncertainty Related to Going Concern" emphasis noting fully eroded net worth. - Related-party commerce with promoter entities scales to crores, with approvals for more
Major- For FY2025-26, the company disclosed related-party transactions with RCC Limited (a promoter group entity) of 2.83 crore shipping services provided, 1.53 crore vehicle purchased, and 19.66 crore shipping services obtained. The 39th AGM notice seeks approval for an RPT with RCC Limited for fleet/equipment purchase not exceeding ₹20 Crore per annum and logistics services not exceeding ₹60 Crore for FY2027-28. The company claims exemption from SEBI LODR Regulation 23 compliance under Regulation 15(2). At the EGM held 27 Mar 2026, the RPT resolutions passed with only 6.45% of outstanding shares polled. - Reported debt omits fleet-financing obligations and the MD&A's debt-equity ratio is inconsistent
Major- The FY2025-26 MD&A's ratio table shows a current-year debt-equity ratio of 1.35, while its narrative repeats the prior-year 10.07% figure. The balance sheet notes show total borrowings of ₹854.16 lakhs as at 31 March 2026. The FY2024-25 notes confirm three vehicle-loan facilities with monthly installments, and the FY2023-24 MD&A states no loan was availed. - Revenue grew 2.2x in FY26 while receivables days swung from 166 to 32
Major- Revenue grew from ₹16.13 crore in FY23 to ₹43.03 crore in FY25 (39% increase), then to ₹96.67 crore in FY26 (125% increase). Receivables days rose from 73.09 in FY24 to 166 in FY25, then fell sharply to 32.31 in FY26. The FY2024-25 MD&A states "Debtor turnover ratio declined indicating longer credit period," while the FY2025-26 MD&A states "Debtor turnover ratio increased due to improved recovery of trade receivables". Cash flow from operations was ₹-6.85 crore in FY25 against PAT of ₹1.09 crore, before turning positive at ₹8.36 crore in FY26 against PAT of ₹2.87 crore. - Three statutory audit firms in six years, with resignations citing fees and workload
Major- M/s. Mayur Shah & Associates resigned w.e.f. 25 June 2020 citing "inability to continue... due to their preoccupancy". M/s. NPV & Associates resigned w.e.f. 25 June 2022 citing "proposed audit fees is not commensurate with the audit work". M/s. Prakash Tekwani & Associates was appointed from 12/07/2022 at Rs. 75,000/- per annum, with the notice stating this is a "change in the fees payable to the proposed statutory auditors as compared to the fees given to the outgoing auditors". The current auditor has served continuously since 12/07/2022 through FY2025-26. - Company states no critical accounting judgments were required while relying on carried-forward losses and reclassifications
Major- FY2022-23, FY2023-24, and FY2024-25 standalone financial statements each state that "No judgements and estimates were required to be made in preparing these financial statements that were critical or material". The FY2019-20 annual report states no deferred tax provision was made because the company has "huge carried forward losses". The FY2025-26 standalone financial statements state "Previous year's figures have been regrouped or reclassified wherever necessary" without quantifying the impact. - Operating cash flow swings from deeply negative to strongly positive, with no dividend paid
Major- FY26 operating cash flow was ₹8.36 crore against PAT of ₹2.87 crore, a CFO/PAT ratio of 2.91x, after FY25 CFO of -₹6.85 crore and FY24 CFO of -₹1.55 crore. Cumulative CFO over 9 years was -₹0 crore against cumulative PAT of ₹5 crore. No dividend was proposed for FY2023. FY26 ROCE was 27.95% with free cash flow of ₹5.78 crore, versus FY25 ROCE of 16.29% with free cash flow of -₹9.59 crore. - Disputed tax demand of ₹14.34 lakh disclosed in Note 31
Minor- In the FY2025-26 Integrated Annual Report (announced 20/08/2026), Note 31 "Disputed demand not acknowledged as debt" discloses a tax demand at CIT Appeal Stage for AY 22-23 of ₹14.34 lakh as at March 31, 2026 and March 31, 2025. The FY2023-24 auditor's report stated: "No pending litigations which would impact the Company's financial position". - Standalone entity with no subsidiaries, associates, or joint ventures
Clean- Rajvi Logitrade disclosed no subsidiaries, associates, or joint ventures in Form AOC-1 for FY2024-25. No company became or ceased to be a subsidiary, joint venture, or associate during FY2021-22 through FY2025-26. The company's NBFC registration certificate was cancelled, and the company "can no longer carry on the NBFC business".
What to watch
- Going-concern status. Whether the material uncertainty reported every year from FY2019-20 through FY2025-26 is removed in the FY2026-27 auditor's report.
- Internal audit function. Whether the strengthening referenced in the qualified IFC opinion for FY2025-26 is completed and reflected in the FY2026-27 auditor's report.
- Disputed tax demand. The FY2025-26 Integrated Annual Report, announced 20/08/2026, discloses in Note 31 a disputed Income Tax demand of Rs 14.34 lakh for A.Y.2022-23 at the CIT Appeal Stage as at March 31, 2026 and March 31, 2025.
- RCC Limited transactions. FY2027-28 activity under the approved caps of ₹20 Crore fleet purchase and ₹60 Crore logistics services.
- FY2026-27 annual report. Due by August 2027, whether receivables days remain near 32 or revert toward the FY25 level of 166, and whether CFO remains positive relative to PAT.
- Auditor tenure. Prakash Tekwani & Associates' 5-year term runs until the AGM in 2027; any resignation or non-reappointment before then would mark a fourth auditor change in under a decade.
- Cash conversion. Whether the FY26 positive CFO/PAT ratio of 2.91x is sustained or reverts to the negative pattern of FY24-FY25.
Bottom line: This is a record of sustained auditor-flagged weaknesses coexisting with clean opinions, rapid revenue growth alongside volatile cash conversion, and growing related-party reliance. The risk sits in the gap between the company's stated financial health and the qualifications attached to it. Watch whether the going-concern warning is lifted, whether the internal-audit function is finally strengthened, and whether the FY26 cash-flow improvement marks a real turn or a one-off.