Albert David’s seven-year audit record is clean: unqualified opinions throughout, no fraud or diversion flags, and an orderly auditor rotation. The numbers tell a different story in the latest year, operating cash flow has turned deeply negative, profit has vanished, and the return on capital employed has collapsed to 0.75%, even as dividends continue to be paid.
Key findings
- Operating cash flow has turned persistently negative while dividends continue
Major- Operating cash flow was negative ₹7.66 crore in FY26 and negative ₹28.44 crore in FY25, after being positive ₹45.50 crore in FY24. Profit after tax swung from ₹75.42 crore in FY24 to a loss of ₹1.49 crore in FY26. The Board nevertheless recommended a dividend of ₹5 per share (₹2.85 crore outflow) for FY26, the same as FY25. - Revenue recognition is a recurring Key Audit Matter with rising credit-impaired receivables
Minor- Revenue recognition is designated a Key Audit Matter, an area requiring the most judgement, in FY2024-25 due to the risk of misstatement from complex estimation of discounts, incentives and rebates. A single customer accounted for 16.26% of revenue in FY2022-23, declining to 5.04% in FY2025-26. Credit-impaired trade receivables nearly doubled from ₹36.03 lakhs at 31 March 2022 to ₹64.93 lakhs at 31 March 2026. - Audit opinions are consistently unqualified with only a Secretarial Audit qualification in FY25
Minor- The statutory audit opinion was unqualified in every year from FY20 through FY26, with no qualification, reservation, adverse remark or disclaimer. No fraud was reported by the statutory auditors under Section 143(12) in any year, and the company has not been declared a wilful defaulter. The only blemish is a Secretarial Audit qualification in FY25: “there has been some gaps in filing of forms with ROC and the company is in the process of filing the same”. - Statutory auditor rotated in FY2022 after completing a five-year term
Clean- M/s. Basu Chanchani & Deb served as statutory auditors from the 78th AGM on 12 September 2017 through the 83rd AGM in 2022, completing their five-year term. M/s. L. B. Jha & Co. were appointed at the 83rd AGM on 10 August 2022 for a five-year term ending at the 88th AGM in 2027, receiving 100% of votes polled in favour. No resignation of statutory auditors occurred during any year from FY22 through FY26.
What to watch
- CEO appointment vote. The 87th AGM (date to be announced) will vote on the regularisation of Mr. Amit Mahla as Director and his appointment as Whole-time Director & CEO with minimum-remuneration protection for the period 19 June 2026 to 31 March 2027.
- Miltefosine project capitalisation. Capitalisation of the Miltefosine SSG API Project upon commencement of commercial production, as disclosed in the FY2025-26 Annual Report.
- Excise duty receivable. The ₹1.39 crore claim remains pending at CESTAT with no scheduled date as of the FY2025-26 Annual Report.
Bottom line: This is a disclosed and consistently audited record with no fraud or diversion findings across seven years. The risk is concentrated in the cash-flow deterioration: two consecutive years of negative operating cash flow, a collapse in return on capital employed to 0.75%, and a dividend that continues to flow out. Watch whether the Miltefosine project changes the cash-flow trajectory, and how shareholders vote on the next round of promoter remuneration.