Technocrats Plasma Systems Ltd Forensic Report - SOIC x StockScans Report

as of Sep 2026

Technocrats Plasma Systems Ltd's record carries clean audit opinions for FY2024-FY2026, but the period around its IPO shows a sharp divergence between reported profit and cash, heavy reliance on related-party transactions, and a board reshaped just before the offer. The most important things to understand are the ₹100 crore related-party limit being sought against ₹49.36 crore of revenue, the negative operating cash flow against rising deferred tax assets, and the auditor change that took place in August 2024.

Key findings

  1. ₹100 crore related-party limit sought, double FY25 revenue, with director loans converted to equity Major - Technocrats seeks shareholder approval on September 28, 2026 for related-party transactions up to ₹100 crore for FY2026-27, roughly double FY25 revenue of ₹49.36 crore. The explanatory statement says the aggregate value "may exceed the prescribed thresholds under applicable laws". On April 08, 2025, the company allotted 6,230 shares at ₹2,400 each (₹2,300 premium) to directors converting loans into equity, following a special resolution on April 04, 2025.
  2. Reported profit is not backed by cash, and no dividend has ever been paid Major - Cumulative operating cash flow was negative ₹6 crore over FY2023-FY2025 against cumulative profit of ₹12 crore. FY2025 operating cash flow was negative ₹6.74 crore against profit of ₹8.11 crore. The company has not paid any dividend since incorporation, and the board recommended none for FY2025-26. The entire fund requirement for the issue is to be funded from proceeds, with no firm financing arrangements and no bank appraisal.
  3. Deferred tax assets tripled to ₹37.7 crore while cash flow stayed negative Major - The deferred tax asset balance rose from ₹11.3 crore at March 31, 2023 to ₹37.3 crore at March 31, 2025 and ₹37.7 crore at June 30, 2025. The average effective tax rate over FY2023-FY2025 was -529.1% against a statutory rate of 25.2%. Trade receivables rose from 327.18 crore at March 31, 2024 to 3,604.66 crore at June 30, 2025, and inventories from 508.08 crore to 1,958.08 crore over the same period.
  4. Auditor resigned mid-tenure in August 2024, replaced the next day; restated financials came from a different firm Major - Auditor M/s D J AD & Co resigned on August 13, 2024 citing "Preoccupation with other assignments", and M/s Piyush Kothari & Associates was appointed the next day. The restated financial statements in the DRHP were furnished by M/s Bhasin Hota & Co, which is not the statutory auditor; the statutory auditor is M/s Piyush Kothari & Associates.
  5. Revenue recognition relies on percentage-of-completion estimates with unreconciled balances Major - Revenue is recognised under the percentage of completion method, with estimates reviewed periodically. Trade receivables, payables, advances and other current balances are subject to confirmation and reconciliation, with some outstanding for a significant period. Receivable days were 281 in FY23, 197 in FY24 and 110 in FY25, while revenue rose from ₹4.46 crore to ₹49.36 crore over the same period.
  6. Promoter control is absolute at 86.96% with a board reshaped around family members Major - Promoters Arun Kumar and Vandana Sharma hold 86.96% of pre-offer capital with no pledge, as of the DRHP dated 21 Aug 2026. On July 25, 2025, Arun Kumar was redesignated Chairman and Managing Director, his daughter Amrisha was appointed Additional Director and later CEO, and Vandana Sharma was appointed CFO. Promoter-group member Geeta Singh refused to provide information, prompting a SEBI exemption application filed November 14, 2025. A motor car was held in a director's name across all reported periods.
  7. Clean audit opinions since FY2024, but the FY2023 predecessor qualified key balances Minor - Piyush Kothari & Associates issued unqualified opinions for FY2024, FY2025 and FY2026, with no Emphasis of Matter or Key Audit Matters. The FY2023 auditor qualified trade receivables, payables, advances and inventory records, with impact unascertained. The FY2026 CARO report discloses an unspent CSR amount of ₹5,78,668 transferred to PM CARES on July 23, 2026, after the year-end.
  8. Contingent liabilities include decade-old VAT demands and a pending cheque-bounce case Minor - Disputed VAT/CST demands total ₹4,26,18,604 as at June 30, 2025, with appeals pending and stays received February 24, 2021 for the FY2012-13 and FY2014-15 matters. A criminal complaint under Section 138 of the Negotiable Instruments Act was filed April 25, 2022 against promoter-director Arun Kumar over a dishonoured cheque of ₹5.00 Lakh.

What to watch

Bottom line: This is a disclosed and audited record with clean opinions in the recent years, but the cash story is the weak point: profits are booked while operating cash is negative, and the gap is filled by deferred tax recognition and a fresh issue. The related-party limit and the board's family concentration deserve attention, as does the auditor change that preceded the restated financials. Watch the September 28 vote and the SEBI exemption outcome.