Trade-Wings Ltd Forensic Report - SOIC x StockScans Report

as of Sep 2026

Trade-Wings Ltd's audit opinions have been clean for seven straight years, but the record underneath is crowded with unresolved items: a two-decade-old promoter dispute, a trading suspension that remained in place as of the 74th AGM on 25 September 2024, and a subsidiary whose losses have exceeded its net worth as of 31 March 2020, 2021, 2023 and 2026.

Key findings

  1. A two-decade-old promoter dispute and unresolved exchange fees sit on the books Major - A 2000 agreement for Bogmallo Beach Resort was terminated in 2007, and Rs.1629.60 received from the other party remains categorized under Other Current Liabilities as "Money Received Pending Appropriate Treatment" while litigation continues in Mumbai and Goa courts. The same amount has been disclosed every year from FY2019-20 through FY2025-26. Separately, BSE demanded ₹20 lakh plus GST in reinstatement fees on 26 May 2025, a waiver was requested the next day, and an unprovided ₹74.59 lakh bank interest liability from a 2013 letter also remains.
  2. A multi-year trail of listing-compliance failures, capped by a trading suspension and a ₹12.73 lakh employee fraud Major - Secretarial audits from FY2019-20 through FY2023-24 document late filings under SEBI LODR, unpaid reinstatement fees and SOP fines, and a pending Structured Digital Database inspection. The company's securities were suspended, a compulsory-delisting show-cause notice drew no reply from BSE, and the suspension remained in place as of the 74th AGM on 25 September 2024. In FY2025-26, an employee diverted ₹12,72,836 of vendor payments to her personal account; she was terminated and an FIR filed.
  3. Director pay ran ahead of shareholder approval and statutory limits Major - Dr. Shailendra Mittal drew ₹14.40 lakh and Mr. Hemant Panchal ₹7.62 lakh in FY2024-25 without prior shareholder approval, in excess of Section 197 limits. The 76th AGM notice dated 29 August 2026 carries a special resolution to ratify and waive recovery of that excess. The FY2025-26 auditor's report qualifies the holding company's managerial remuneration as non-compliant with Section 197 read with Schedule V.
  4. Clean opinions, but the auditor has repeatedly flagged unconfirmed balances and an unprovided impairment Major - The standalone audit opinion was unqualified in every year from FY2020 to FY2026. Yet the auditor's Emphasis of Matter, a special call-out in the audit report, on unconfirmed debtor and creditor balances appears in five of those years, and the unprovided impairment in the wholly owned subsidiary in six. The FY2026 consolidated CARO annexure separately discloses the ₹12.73 lakh subsidiary employee fraud.
  5. Borrowings are repeatedly restructured and backed by promoter-linked guarantees Major - Cash credit facilities at Union Bank of India and Bank of Baroda were restructured into term loans in 2021. The Bank of Baroda facility is secured by corporate guarantees of two promoter-linked firms and the personal guarantee of Dr. Shailendra Mittal, per the 22 May 2026 sanction letter. An additional interest liability of ₹87,45,826 on the restructured loans was not provided in FY2023-24, with no provision made as of the report date.
  6. The sole subsidiary's losses have exceeded its net worth for years, with no impairment ever booked Major - Trade Wings Hotels Ltd, the only subsidiary, had losses exceeding its paid-up capital and free reserves as of 31 March 2020, 2021, 2023 and 2026. No provision for those losses or for diminution in the investment's value has been made in any of those years. The subsidiary did report a profit of ₹3.23 crore in FY2024-25.
  7. A 1986 property revaluation keeps recycling into profit, while no tax is booked Major - A 1986 revaluation of two properties created additions of 1.04 crore, and the company withdraws a small sum from the revaluation reserve each year to offset depreciation, crediting the same amount to profit, identical in FY2020 and every year from FY2022 to FY2026. No income tax provision was made in FY2025-26, and no deferred tax assets were recognised on accumulated losses. The average effective tax rate was -32.0% against a 25.2% statutory rate over the four years to FY2026.
  8. Revenue recognition is routine, but the doubtful-debt provision has not kept pace Minor - Revenue grew from ₹87.05 crore in FY2021-22 to ₹262 crore in FY2025-26, while the doubtful-debt provision stayed near ₹1.12-1.13 crore from FY2019-20 to FY2021-22. Management stated no further provision was needed for debts outstanding more than six months. Customer advances are held as contract liabilities and recognised as revenue when the performance obligation is satisfied.

What to watch

Bottom line: This is a disclosed and audited record, but the disclosures themselves carry the story, a suspended stock, a subsidiary whose losses have long exceeded its net worth, and a promoter dispute that has run for about 19 years since the underlying agreement was terminated in 2007. The risk is not hidden in the numbers; it sits in the items the company has chosen not to provide for. Watch whether the BSE reinstatement is paid, whether the Vasco court rules on the amount of Rs.1629.60 (thousand) that remains pending appropriate treatment, and whether the subsidiary's impairment ever gets recognised.