Akme Fintrade’s record shows clean audit opinions and a growing loan book, but the growth has been funded entirely by debt and warrants while operating cash flows have stayed deeply negative for three years. A disputed income-tax demand of ₹12.97 crore was raised in March 2026, and the company is asking shareholders to waive recovery of ₹12,09,000 in excess managerial remuneration paid to an executive director.
Key findings
- Operating cash flows are deeply negative while reported profit grows
Major- Operating cash flow was negative ₹167 crore in FY26, negative ₹177 crore in FY25, and negative ₹45.50 crore in FY24, even as profit after tax rose from ₹18.53 crore to ₹42.32 crore over the same period. Borrowings climbed to ₹503 crore in FY26, and the company issued 12,25,00,000 warrants at ₹7 apiece to fund working capital. - Promoter family holds four executive director seats and seeks a pay waiver
Minor- Four executive directors belong to the promoter family, including the son-in-law of the Chairman, appointed effective 13 December 2025 at up to ₹3 lakh per month. The company is asking shareholders on 4 August 2026 to waive recovery of ₹12,09,000 in excess managerial remuneration paid to Executive Director Mr. Rajendra Chittora during FY2025-26. - Clean audit opinions sit alongside rising overdue loans and a ₹12.97 crore tax demand
Minor- Valawat & Associates issued unmodified opinions for FY2024 through FY2026, with no fraud or whistle-blower complaints reported. Over the same window, loans overdue more than 90 days grew from ₹2.08 crore to ₹5.57 crore, and a disputed income-tax demand of ₹12.97 crore was raised in March 2026.
What to watch
- Shareholder vote on the Akme Build Estate transactions. The AGM on 4 August 2026 will decide on the proposed property purchases and security deposits with Akme Build Estate Limited.
- Waiver and remuneration votes at the 30th AGM. Shareholders vote on 4 August 2026 on the ₹12,09,000 excess-remuneration waiver for Mr. Rajendra Chittora and the appointment of Mr. Kamlesh Jain as Executive Director.
- Statutory auditor appointment. M/s Shyam S. Gupta & Associates is proposed for appointment at the AGM on 4 August 2026.
- Income-tax demand resolution. The disputed demand of ₹12.97 crore raised in March 2026 remains outstanding.
- Promoter loan disclosure. The FY2025-26 annual report notes reference the Akme Projects Ltd loan, but the outstanding amount has not yet been disclosed in the dossier.
Bottom line: This is a disclosed and audited record with a growing loan book, but the growth is debt-funded and cash-flow-negative. The character of the risk is concentrated related-party exposure: four promoter-family executive directors and a shareholder vote on 4 August 2026 to waive recovery of excess managerial remuneration. Watch the AGM votes on 4 August 2026 and the eventual disclosure of the promoter-loan balance.