Rama Vision's audit record is clean on its face: seven consecutive years of unqualified opinions, no fraud reported, and a stable auditor since 2017. But the numbers underneath tell a different story: nine years of reported profit have produced only ₹4 crore of operating cash, and the company's borrowing capacity rests on charges over substantially all assets plus personal guarantees of three promoter-directors. Promoter pay has risen repeatedly through shareholder votes, and the company's own reports deny the existence of group entities that its auditors say exist.
Key findings
- Nine years of reported profit have produced almost no operating cash
Major- Cumulative operating cash flow was ₹4 crore against cumulative profit of ₹16 crore over nine years, a ratio of 0.26x. In FY2025-26, profit was ₹5.92 crore but operating cash flow was only ₹0.69 crore, and in the two prior years operating cash flow was negative. Free cash flow was negative in each of the last three years, at ₹-0.81 crore, ₹-3.76 crore and ₹-13.02 crore. - Borrowing capacity is secured by charges over all assets and promoter guarantees, and banks rate the company sub-investment grade
Major- Term loans of ₹415.94 lacs are secured by hypothecation of plant and machinery, an equitable mortgage of factory land and the corporate office building, and personal guarantees of the Chairman & Managing Director, Director (Marketing) and Executive Director. Shareholders approved borrowing authority of up to ₹30.00 crores on 21 Sep 2023. CARE Ratings assigned CARE BB; Stable in February 2023 and upgraded to CARE BB+; Stable on 20 March 2024, citing weak profitability and stretched liquidity. - Reported profits are shaped by one-time items and non-comparable segment figures
Major- The company elected the section 115BAA tax option from FY2020-21, writing off its MAT credit entitlement as a tax expense. Labour-code changes effective 21 November 2025 produced exceptional charges of ₹50.70 lacs for gratuity and ₹23.74 lacs for compensated absences. Manufacturing began only on 25 December 2023, so FY2024-25 figures are not comparable with the prior year. - Promoter family control is consolidated and pay has risen repeatedly through shareholder votes
Major- Promoter shareholding stands at 54.73%, with no pledge. Satish Jain's monthly remuneration rose from ₹7,50,000 to ₹10,00,000 effective 1 January 2023, then to ₹13,00,000 effective 1 October 2024. Managerial pay rose 29.34% in FY2022-23 against 6.33% for non-managerial staff, and 16.01% in FY2025-26 while non-managerial pay fell 3.40%. - The company denies having subsidiaries, but its auditors say the group has two Core Investment Companies
Major- The Board's Report for every year from FY2019-20 through FY2025-26 states the company has no subsidiary, joint venture or associate. The independent auditor's CARO report for FY2024-25 and FY2021-22 states: "The group has two CICs as part of the group". - A small disputed liability has sat on the books for years
Minor- As at FY2021-22, pending litigation of ₹66.77 lacs was disclosed as not acknowledged as debt and pending adjudication, flagged as a Key Audit Matter. The company has stated in each year from FY2021-22 through FY2023-24 that no proceedings were pending under the Insolvency and Bankruptcy Code. - Seven years of clean audit opinions, with one recurring title defect
Minor- The statutory auditor issued unqualified opinions for every year from FY2019-20 through FY2025-26, with no fraud reported under Section 143(12) in any year. The only recurring exception is a building of ₹26.39 lacs held via General Power of Attorney without a conveyance deed, reported in FY2024-25 and FY2020-21. - A stable auditor since 2017, though fees are modest and a prior rating agency withdrew cooperation
Minor- M/s. Suresh Kumar Mittal & Co. was appointed in 2017 and re-appointed for a second term running to the 38th AGM in 2027. Audit fees were ₹5.69 lacs in FY25. CARE Ratings noted on 3 Jun 2021 that a previous agency, ACUITE, had placed its rating under non-cooperation for non-submission of information.
What to watch
- 37th AGM, 25 September 2026. Shareholders vote on Satish Jain's re-appointment, Udit Jain's remuneration increase, and Maneka Jain's remuneration increase.
- Borrowing authority exercise. Whether the Board uses the ₹30.00 crores borrowing and security-creation authority approved on 21 Sep 2023.
- Rating action. Whether CARE Ratings moves the enhanced ₹17.20 crore facilities after the 20 March 2024 upgrade to CARE BB+; Stable.
- Disputed liability outcome. The ₹66.77 lacs litigation disclosed as pending adjudication in the FY2021-22 Annual Report.
- Auditor term end. The current statutory auditor's term concludes at the 38th AGM in 2027.
Bottom line: This is an audited record with clean opinions and no fraud findings, but the cash conversion is the story: nine years of profit have yielded almost no operating cash, and the last three years consumed cash. The risk is concentrated in promoter control, pay, guarantees, and group entities the company says do not exist. Watch the AGM votes and whether the borrowing authority gets used.