Workmates Core2cloud Solution Ltd's record shows a profitable, fast-growing business with a clean audit opinion, but the cash story is weaker than the profit line suggests. Over five years, operating cash flow converted only about half of adjusted profit into cash, and the latest year turned negative despite record earnings. Two smaller items also deserve attention: the company says it has no litigation while pursuing five cheque-bounce complaints, and promoter-directors hold a large pre-IPO stake with pay rises proposed to take effect from April 2026.
Key findings
- Profit has not converted to cash over five years, with FY26 cash flow negative despite record profit
Major- Cumulative operating cash flow was ₹19 crore against cumulative PAT of ₹38 crore less other income of ₹3 crore over FY22-FY26, a conversion ratio of 0.53x. FY26 PAT was ₹15.92 crore but operating cash flow was negative ₹0.07 crore, while FY25 delivered ₹5.06 crore of operating cash flow on ₹13.93 crore of PAT. Capital work-in-progress collapsed from ₹10.28 crore to ₹0.15 crore in a single year, with intangible assets under development classified under CWIP pending completion. - The company reports no contingent liabilities or disputed tax matters, while pursuing five criminal cheque-bounce complaints
Minor- The standalone auditor's report for FY2025-26 states no litigation is pending that would impact the financial position and no dues are pending on account of any dispute relating to income tax, sales tax, wealth tax, service tax, customs duty, excise duty, or value added tax. The notes to both standalone and consolidated financial statements repeat that there is no litigation or legal/disputed matters with future impact. Separately, the company filed five criminal complaints against M/S. Kadhir Network Private Limited under Section 138 of the Negotiable Instruments Act, 1881 for dishonour of cheques, totalling ₹29,58,987, with warrants of arrest issued in each case and all matters pending adjudication. - Promoter-directors hold 43% of pre-IPO equity while two whole-time directors received 19-29% pay rises effective April 2026
Minor- Promoters held 98.10% of pre-issue capital, with directors Debasish Sarkar, Prajnashree Mohapatra, and Kamal Nath holding 19.00%, 19.00%, and 5.00% respectively, totalling 43.00%. Managing Director Basanta Kumar Rana is the husband of Non-Executive Director Prajnashree Mohapatra, and availed a loan from the company before becoming a director, provided per employee loan policy. The AGM notice proposes revising Mr. Sarkar's remuneration from ₹42 Lakhs to ₹54 Lakhs per annum and Mr. Rana's from ₹63.60 Lakhs to ₹75.60 Lakhs per annum, both effective 1st April 2026.
What to watch
- AGM vote on remuneration revisions. Shareholders vote on pay rises for Mr. Debasish Sarkar and Mr. Basanta Kumar Rana, per notice dated 1st Sep 2026.
- Cheque-bounce adjudication. Five criminal complaints against M/S. Kadhir Network Private Limited remain pending, as disclosed in the DRHP dated 18th Nov 2025.
- FY2026-27 Annual Report. Watch whether CWIP rebuilds from the ₹14.68 lakhs base and whether operating cash flow recovers from FY26's negative ₹0.07 crore.
Bottom line: This is a disclosed and audited record with strong reported profitability and returns, but the cash conversion gap is the central issue. The risk is that reported earnings outpace the cash actually generated, and the collapse in capital work-in-progress raises a question about what was capitalised and what was expensed. Watch the AGM vote, the cheque-bounce case, and the next annual report for whether cash flow catches up with profit.