Supra Pacific Financial Services Ltd Forensic Report - SOIC x StockScans Report

as of Sep 2026

Supra Pacific Financial Services' FY2026 audit is clean on its face, but the record beneath it carries several serious strains. A ₹90 lakh cash-misappropriation fraud and a doubling of 90-day overdue loans sit alongside five straight years of deeply negative operating cash flow, rapid debt growth, and recurring related-party approvals that dwarf the company's own turnover.

Key findings

  1. A ₹90 lakh fraud and a doubling of overdue loans, yet a clean audit opinion Major - G Joseph & Associates issued an unqualified opinion for FY2026 dated 20 May 2026, with no Key Audit Matters reported. The CARO report discloses one instance of fraud of approximately ₹90 lakhs from misappropriation of cash collections, with no provision recognised as the loss is expected to be fully recoverable under insurance. Total amounts overdue for more than 90 days stood at ₹4.28 crore as at 31 March 2026, up from ₹1.64 crore a year earlier.
  2. Operating cash flow has been negative for five straight years, even as dividends began Major - Operating cash flow was negative ₹66.35 crore in FY26, following negative ₹118 crore in FY25, negative ₹62.09 crore in FY24, negative ₹24.95 crore in FY23, and negative ₹14.96 crore in FY22. Against reported profit of just ₹7.88 crore in FY26, that is a CFO/PAT ratio of -8.42x. The Board recommended an interim dividend of ₹0.20 per share on 14 November 2025, after recommending none in the prior two years.
  3. Debt has scaled rapidly while cash flows stay negative, leaving repayment dependent on refinancing Major - Secured redeemable NCDs grew from ₹30.88 crore in FY2023 to ₹136.37 crore in FY2026, and subordinated unsecured debt from ₹13.72 crore to ₹92.44 crore over the same period. Adjusted net debt-to-equity rose from 1.68 in FY2024 to 3.25 in FY2025. The shareholder borrowing limit was raised to ₹1,500 crore in FY2026, with the resolution explicitly permitting borrowings to exceed paid-up capital and free reserves.
  4. Related-party approvals with Centreal Bazaar repeatedly sought at limits up to 206% of turnover Major - In January 2024, the company sought shareholder approval for a ₹25 crore related-party limit with Centreal Bazaar India Limited, which the explanatory statement said would constitute 206% of FY2022-23 turnover of ₹12.11 crore. The auditor flagged a loan to a related company of ₹48.12 lakh in both FY2023-24 and FY2024-25, with closing balances of ₹27.42 lakh and ₹16.42 lakh respectively. The FY2020-21 Board's Report disclosed a 40-day delay in filing the related-party disclosure under SEBI LODR.
  5. Promoter stake tripled through allotments and buys while directors and KMPs cycled through Major - Promoter Joby George's holding rose from 7,99,393 shares (6.23%) on 20 Oct 2023 to 74,71,547 shares (22.45%) by 5 Jun 2025. Three independent directors or additional directors resigned or were appointed and resigned within a single financial year, FY2022-23. A postal ballot notice dated 05.08.2024 contained an "inadvertent error" in shareholding patterns requiring a separate ratification resolution.
  6. Profit is shaped by deferred tax credits and ECL provisions built on management judgment Major - Income tax expense for FY2024 was a credit of ₹6.68 lakh versus an expense of ₹24.64 lakh in FY2023, with a net deferred tax asset of ₹28.00 lakh as at 31 March 2024. The company adopted a workout LGD approach for expected credit losses because it does not have historical data, and considers a loan defaulted at 90 days past due. Provision under IRACP norms was taken at 0.25% of outstanding loans.
  7. Revenue recognition is conservative on paper, but the retail book's credit-impaired loans more than doubled Major - Penal interest, bounce charges, and foreclosure charges are recognised only on realisation, and Stage 3 interest accrues on net carrying value. Gross credit-impaired loans rose from ₹37.33 lakh in FY2023 to ₹52.05 lakh in FY2024. The staging criteria were tightened between those years, Stage 3 moved from 181+ DPD to 150+ DPD, which lowered the net credit-impaired ratio to 0.40% even as the gross balance rose.
  8. Deloitte resigned in 2021 due to RBI audit caps; the replacement is locked in through 2029 Minor - Deloitte resigned effective 3 September 2021, citing RBI circular limits on the number of NBFC audits per firm. G Joseph & Associates was appointed to fill the vacancy and re-appointed for five years until the 43rd AGM in 2029.
  9. Contingent liabilities and litigation exposure are minimal Clean - Contingent liabilities were reported as Nil for FY2025-26, with no pending claims against the company. The only legacy matter is an income-tax notice from 2018 for ₹77,84,590, of which ₹52,93,860 was paid and the balance provisioned.

What to watch

Bottom line: This is a disclosed and audited record, but the disclosures themselves carry the weight. The clean opinion sits alongside a fraud, a doubling of overdue loans, and five years of negative operating cash flow, while debt has grown fourfold and dividends have begun. The risk is concentrated in refinancing dependence and management judgment in provisioning. Watch the NCD maturities and the fraud recovery disclosures in the coming annual report.