Veer Global Infraconstruction's record carries clean audit opinions for each year from FY2019-20 through FY2025-26, with the FY2025-26 CARO report carrying a default disclosure and an Emphasis of Matter: a ₹22.12 crore GST demand under High Court stay, a confirmed default to Bank of Baroda, and a history of negative operating cash flow that profit figures have never reflected.
Key findings
- A ₹22.12 crore GST demand emerged after six years of nil contingent liabilities
Major- For FY2019-20 through FY2024-25, the company disclosed contingent liabilities of nil each year. On 17 September 2025, it received a GST demand notice for ₹22,12,72,895 plus interest and penalty, covering FY2017-18 to FY2024-25. As of 31 March 2026, the company reported this as a contingent liability with no provision, the Bombay High Court having granted a stay on proceedings. - Veer Global defaulted on a Bank of Baroda term loan while borrowing limits rose to ₹100 crore
Major- The company defaulted on repayments to Bank of Baroda during FY2025-26, with ₹90,01,141.74 overdue as at 31 March 2026 and a delay of approximately 50 days. Shareholders approved a special resolution on 20 August 2025 raising borrowing limits to ₹100 crore, yet non-current borrowings stood at 12.81 crore as at 31 March 2026. - Operating cash flow was negative in every reported year while dividends were still paid
Major- Net cash flow from operations was ₹-5.90 crore in FY21, ₹-3.98 crore in FY20, and ₹-0.99 crore in FY19, against positive PAT of ₹0.19 crore, ₹0.19 crore, and ₹0.12 crore respectively. The company declared a 1% dividend for FY2021 despite FY21 CFO of ₹-5.90 crore. A rights issue during FY22 raised funds for the 'Veer One Madhuban' project, of which ₹36,84,635 had been utilised as of the FY22 annual report. - Receivables run at roughly 1.0x annual revenue, with balances unconfirmed
Major- Receivable days were 381 in FY21, 391 in FY20, and 421 in FY19. FY21 revenue was ₹12.94 crore against receivables of ₹13.49 crore, a ratio of approximately 1.04x. The FY2023-24 notes state that some debtor and creditor balances are subject to confirmation and that debtors, creditors, and advances are subject to verification. - Related-party loans to promoters recur, and approvals have been sought with blank limits
Major- The FY2021-22 related-party statement shows unsecured loans from KMPs and relatives totalling ₹63.49 lakhs during the year. The FY2023-24 AGM notice sought approval for a material related-party transaction with the related party name and aggregate amount left blank. The Board proposed on 10 August 2026 a special resolution authorising related-party transactions within an aggregate limit of ₹100 crore. - Seven clean opinions sit alongside a CARO default disclosure and recurring Emphasis of Matter paragraphs
Major- Bansilal Shah & Co issued unqualified opinions for each year from FY2019-20 through FY2025-26. The FY2025-26 CARO report states the company defaulted in repayment of borrowings and interest, and the same report carries an Emphasis of Matter on unconfirmed debtor and creditor balances. - Promoter pay approvals repeatedly exclude promoter votes, leaving public shareholders to ratify with near-zero dissent
Major- At the 14th AGM on 20 August 2025, the resolution for remuneration exceeding Section 197 limits passed with 10,956,855 votes in favour and 1 against. The re-appointment of the Managing Director at the same AGM saw 9,634,470 promoter votes declared invalid as interested parties, leaving 1,322,386 votes polled. At the 13th AGM on 17 August 2024, 81,73,130 votes were declared invalid as cast by promoter, promoter group, and their relatives. - Same small auditor served seven years at ₹25,000 per year
Minor- M/s Bansilal Shah & Company was appointed from the conclusion of the 9th AGM until the conclusion of the 13th AGM. The statutory audit fee was ₹25,000 in FY2021-22. The firm also served as internal auditor for FY2024-25. - Accounting policies are routine and consistently applied
Clean- The MD&A states no deviation in accounting treatment from prescribed Accounting Standards for FY2024-25. Depreciation is charged on the straight-line method per Schedule II useful lives. Previous year figures were regrouped or reclassified wherever necessary in each year from FY2019-20 through FY2025-26.
What to watch
- GST writ petition outcome. The Bombay High Court writ petition challenging the CGST Show Cause Notice, filed 13 November 2025, was pending as of the FY2025-26 reporting period.
- Bank of Baroda repayment. The ₹12 crore term loan availed in FY2024-25 was repayable in 18 months, with ₹90,01,141.74 overdue as at 31 March 2026.
- ₹100 crore omnibus RPT vote. Shareholders vote on the related-party financial transactions resolution at the 15th AGM noticed 27 August 2026.
- Rights issue completion. The company stated its working capital requirement is funded by the proposed rights issue, as disclosed in the FY2023-24 annual report.
- Borrowing limit utilisation. The enhanced ₹100 crore limit approved 20 August 2025 stands against actual borrowings of 12.81 crore as at 31 March 2026.
Bottom line: This is a record with clean audit opinions and routine accounting policies, but the FY2025-26 report introduces a confirmed loan default and a material unresolved GST claim. The deeper issue is cash: operations have consumed cash in every reported year while profits stayed positive and dividends were paid. Watch whether the GST writ succeeds, whether the Bank of Baroda arrears clear, and whether the company actually uses the borrowing and related-party limits it keeps seeking.