Tiger Logistics (India) Ltd Forensic Report - SOIC x StockScans Report

as of Sep 2026

Tiger Logistics' record carries a clear split: seven years of unqualified audit opinions and clean CARO responses sit alongside a five-year cash-flow deterioration that has turned the company's return on capital deeply negative. The major findings cluster around cash conversion, a fully secured borrowing structure under rating pressure, and a subsidiary disclosure trail that contradicts itself within a single annual report. Governance and procedural items are minor but recurring.

Key findings

  1. Reported profits have not converted into operating cash flow for five years Major - Cumulative CFO over the five-year window is ₹-6 crore against cumulative PAT of ₹23 crore, a conversion ratio of -0.31x. ROCE in the latest year is -51.9%, down from 22.6% earlier in the window, and interest coverage is -12.0x. Consolidated PAT in the latest year is ₹-29.38 crore versus standalone PAT of ₹18.95 crore, a swing of ₹48.33 crore.
  2. Working-capital borrowing is secured by receivables, director property and personal guarantees Major - Total borrowings stood at ₹14.10 crore in the latest year, of which ₹14.04 crore (99.6%) was short-term. The cash credit limit is secured against an exclusive charge on receivables, personal guarantees of directors, and an exclusive charge by way of equitable mortgage over residential property in the name of a Director. On 4 June 2026, Infomerics reaffirmed the long-term rating at IVR A-/Negative, citing material deterioration in operating profitability and a stretch in the receivable cycle.
  3. The subsidiary structure is a paper trail of contradictions Major - The FY2024-25 annual report states "Company has no subsidiary company" in the Board's Report while Note 37 states the company "has one subsidiary as of 31st March 2025". A 100% Singapore subsidiary incorporated in FY2016-17 never commenced operations and was struck off on 04.05.2021. The company disclosed 8 associates as related parties in FY2022-23.
  4. A tightly held promoter family controls board appointments and remuneration Major - Ms. Simar Malhotra's remuneration increase from ₹2,50,000 to ₹3,47,070 per month was approved with all 34,939,910 promoter-group votes treated as invalid because they were related parties; the resolution passed with 19,109 valid public non-institution votes in favour and 5,422 against, while 23,258,510 votes abstained. Mr. Harpreet Singh Malhotra's re-appointment as Chairman & Managing Director on 25 March 2026 passed with 34,992,410 votes in favour, of which 34,936,220 were promoter-group votes. Mrs. Surjeet Kaur Malhotra, aged 86 and mother of the Managing Director, is proposed for re-appointment at the AGM on 24.09.2026.
  5. Revenue recognition sits on a thin, discretionary accrual base Minor - Standalone revenue from freight & forwarding services is recognized on an accrual basis and "some job on proportionate basis". Infomerics revised the outlook to Negative due to moderation in profitability margins and increase in working capital intensity. Receivable days stood at 49.78 days in the latest year, down from 79.32 days in FY20 and 112 days in FY19.
  6. An unresolved FEMA compounding matter for a 2020 foreign subsidiary closure Minor - RBI issued a Memorandum of Compounding regarding FEMA non-compliance for submitting a fair valuation certificate based on unaudited financial statements during the subsidiary's disinvestment/closure in 2020. As of August 1, 2026, the company had moved the compounding application, and management expects a penalty of less than ₹1 lakh. On 16 April 2025, Enforcement Directorate officials visited the company and the Managing Director's residence; no material irregularities were found, and the investigation pertains to third-party entities and transactions with no specific violations alleged against the Company.
  7. A multi-year service tax dispute of ₹5.65 crore was resolved in the company's favour Minor - The Commissioner confirmed a service tax demand of ₹5,65,06,356 on 18.11.2021. CESTAT set aside the demand on markup/differential freight, container detention charges and toll tax on 12.07.2023, and the Commissioner re-quantified the demand to the amount already paid on 27.03.2024. The company announced on April 4, 2024 that the matter had concluded in its favour.
  8. Unqualified audit opinions for five years with two recurring exceptions Minor - Auditors issued unqualified opinions for FY2019-20, FY2022-23, FY2023-24, FY2024-25, and FY2025-26, with no key audit matters reported in any of those years. The FY2024-25 audit report disclosed that the accounting software for depreciation did not have an audit trail feature throughout the year. The Secretarial Audit Report for FY2024-25 observed failure to file the return under the Carriage by Road Act, 2007.
  9. Statutory auditor rotated once after the prior firm's term expired Clean - M/s V.K. Sehgal & Associates served through FY2021-22, with its term expiring at the 22nd AGM held on 21 September 2022. M/s Garg Agrawal & Agrawal was appointed at that AGM for five years, with 7,637,627 votes in favour (99.99%). The FY2025-26 CARO report states "No resignation of previous statutory auditors during the year".

What to watch

Bottom line: This is an audited record with clean opinions and no fraud allegations, but the cash-flow deterioration is the story, five years of negative cumulative CFO against positive profits, with ROCE at -51.9%, points to earnings that are not landing as cash. The borrowing structure is fully secured against receivables and personal guarantees, and the rating agencies have moved to Negative or non-cooperation. The subsidiary disclosure contradictions and promoter-controlled pay votes are governance questions the reader should hold alongside the cash numbers, and the watch list carries the pending FEMA, ED and rating outcomes.