Ace Integrated Solutions Ltd Forensic Report - SOIC x StockScans Report

as of Aug 2026

Ace Integrated Solutions' record carries an unqualified audit opinion on its standalone financial statements for FY ended March 31, 2025, but the business underneath deteriorated sharply in FY25: the Examination segment swung from a 42% margin business to a -183% loss, the company posted a consolidated loss of -₹1.56 crore, and disputed receivables considered good ballooned to 3.82 crore. The auditor has also disclaimed opinion on internal financial controls in two of the last three years, and deferred tax assets rest on profit assumptions that the company's own results contradict.

Key findings

  1. Examination segment collapsed from a 42% margin to a -183% loss, with disputed receivables at 3.82 crore Major - Revenue from the Examination and related IT services segment fell from ₹4.89 crore in FY23 to ₹2.79 crore in FY24 and then to ₹0.90 crore in FY25, with segment PBIT margin collapsing from 42.33% to -183% over the same period. Total revenue declined from ₹9.14 crore in FY24 to ₹8.55 crore in FY25, while PAT turned from +₹0.41 crore to -₹1.56 crore. As at March 31, 2025, disputed trade receivables considered good totalled 3.82 crore, up from 1.57 crore as at March 31, 2023.
  2. Auditor disclaimed opinion on internal financial controls in two of three years and flagged a persistent software audit-trail gap Major - Sanmarks & Associates issued an unqualified opinion on the standalone financial statements for FY ended March 31, 2025, dated 29.05.2025, with no Key Audit Matters communicated. However, the auditor issued a DISCLAIMER of opinion on internal financial controls over financial reporting as at March 31, 2025, stating the company "has not implemented the system of internal financial controls with reference to financial statements for its business processes"; the same disclaimer was issued for FY2022-23, while an unmodified opinion was given for FY2023-24. The auditor also reported under Rule 11(g) that the PPE software did not have an audit trail feature enabled for the whole year, the same exception was reported for FY2023-24 and FY2024-25.
  3. Deferred tax assets rest on "reasonable certainty" of future profits while the company posts losses Major - The company recognized deferred tax assets "only to extent of reasonable certainty of future taxable profits" in both FY2025 and FY2024, while FY25 standalone PAT was -₹0.85 crore and consolidated PAT was -₹1.56 crore. The weighted average tax rate was disclosed as 26% for both FY2025 and FY2024, while the computed average effective tax rate over FY24-FY25 was 9.5% versus the statutory 25.2%. The weighted average tax rate was 27.82% in FY2022 and 26% in FY2023, FY2024, and FY2025.
  4. Operating cash flow coverage of profit fell from 1.64x to 0.10x as the company swung to a loss Minor - Operating cash flow fell from ₹0.77 crore in FY23 to -₹0.15 crore in FY25, while PAT fell from ₹0.47 crore to -₹1.56 crore over the same period, with CFO/PAT declining from 1.64x to 0.10x. ROCE declined from 3.69% in FY23 to -11.76% in FY25, with the company attributing the FY25 decline to losses incurred during the year. No dividend was proposed for FY24 and no amount was transferred to reserves during FY24.
  5. Promoter-controlled entities are principal counterparties in a widening web of approved related-party transactions Minor - Rent paid to Ace Integrated Education Private Limited, a related party where directors have significant influence, was ₹18.00 lakh in the year ended March 31, 2024, up from ₹1.00 lakh in the prior year. Sale of paper and other printing services to Amety Offset Printers was ₹40.34 lakh in the year ended March 31, 2024, down from 2.04 crore in the prior year. The FY2025-26 Annual Report seeks shareholder approval for material related-party transactions with eight entities, in supersession of all prior approvals.
  6. Borrowings are minimal at ₹0.14 crore, but debt service coverage collapsed from 29.54 to -90.80 Minor - Total borrowings as at FY25 were ₹0.14 crore against cash of ₹3.19 crore, giving a debt-to-equity ratio of 0.01. The only specific borrowing disclosed is a car loan secured by hypothecation of the car, repayable in 84 equal monthly installments of INR 0.58 lakhs each commencing July 2020, last installment due June 2027, at 8.51% p.a.. Debt Service Coverage ratio was 29.54 as at Mar 31, 2024 and -90.80 as at Mar 31, 2025, attributed to losses incurred during the year.
  7. Promoter family dominates board and management, with remuneration approvals through special resolutions Minor - Mr. Chandra Shekhar Verma (Chairman & Managing Director), Mrs. Amita Verma (Whole-time Director) and Ms. Shivani Chandra (Executive Director) are relatives of each other, with no other directors related. A special resolution proposes to re-appoint Mr. Chandra Shekhar Verma as Chairman & Managing Director for 5 years from June 30, 2026 to June 29, 2031 with remuneration up to ₹60,00,000 per annum, with interested parties being the appointee, his wife and his daughter. Mr. Rajeev Ranjan Sarkari resigned as Non-Executive Independent Director w.e.f. March 18, 2023 and was appointed Executive Director cum CEO w.e.f. April 21, 2023.
  8. The only subsidiary was formed in July 2023 and struck off from MCA records by 2025 Minor - Ace Prometric Solutions Private Limited was incorporated on July 25, 2023 as a wholly owned subsidiary for Recruitment & Examination Services Management. The subsidiary is shown as struck off on the MCA portal as of the FY2024-25 Annual Report, with the company awaiting the final order from the Registrar of Companies. One subsidiary was liquidated with effect from March 27, 2025, reflecting total assets of INR Nil lakhs and total comprehensive loss of INR 0.85 lakhs for the year ended March 31, 2025.

What to watch

Bottom line: This is a disclosed and audited record with a clean financial-statement opinion every year, but the substance of the business deteriorated sharply in FY25. The risk sits in the Examination segment's collapse and the disputed receivables that have grown to 3.82 crore as at March 31, 2025, alongside an auditor who has twice disclaimed opinion on internal financial controls. Watch the FY2025-26 audit opinion, the AGM votes on related-party approvals, and whether the Reship Mart receivable is collected or written off.