Assam Entrade Ltd Forensic Report - SOIC x StockScans Report

as of Sep 2026

Assam Entrade's audit record is clean on its face, unqualified opinions in all six years from FY2021 to FY2026. But the clean opinions sit on top of a loan book that is nearly all one promoter-controlled borrower, an accounting method the auditor has flagged for three straight years, and cash flow that has repeatedly failed to match reported profit.

Key findings

  1. Nearly the entire loan book sits with one promoter-controlled entity, and the accounts contradict the auditor's own disclosure Critical - Mantora Oil Products Private Limited, a promoter-group entity with influential control over Assam Entrade, owed ₹4,047.61 lakhs (₹40.48 crore) on an interest-bearing unsecured loan as at 31 March 2024, 98.73% of total loans. The loan carried interest income of ₹453.86 lacs in FY2023-24, with directors Nishant Gupta and Jayesh Gupta disclosed as interested parties. Note 5 to the FY2023-24 standalone financial statements shows loan balances of ₹4,047.61 lakhs without naming Mantora, while CARO clause 3(iii)(b) in the same annual report discloses the outstanding balance from Mantora.
  2. The loan book, two-thirds of total assets, has gone unprovisioned under Ind AS 109 for three straight years Major - The auditor's Emphasis of Matter, a special call-out in the audit report, stated in FY2023 and FY2024 that the company had not made impairment allowance using the Expected Credit Loss (ECL) approach required by Ind AS 109 for loans, which constituted 67.89% of total assets in FY2023 and 67.38% in FY2024, continuing on the incurred-loss method instead. The same Emphasis of Matter was repeated in FY2025 and FY2026. The company's own notes for FY2025 state "there is no expected credit loss for the company".
  3. Operating cash flow has been negative or negligible in three of the last four reported years Major - Assam Entrade reported CFO of ₹-2.06 crore against PAT of ₹1.98 crore in FY26, CFO of ₹-0.05 crore against PAT of ₹3.02 crore in FY25, and CFO of ₹-4.58 crore against PAT of ₹1.49 crore in FY23. Meanwhile, "cost expenses incurred on Real Estate Project" rose from ₹55.14 lakh as at 31 March 2024 to 5.17 crore as at 31 March 2025. The Kanpur township project is being developed jointly with five other parties, and all outlays are accounted for under project work-in-progress rather than expensed.
  4. A two-subsidiary structure where the subsidiaries are near-dormant and audited by another auditor Major - The combined financial statements of subsidiaries Sumeru Commosales Pvt Ltd and Pacific Barter Pvt Ltd showed total assets of ₹585.35 lacs, total revenues of ₹0.78 lacs, and a net loss of ₹0.04 lacs as at 31 March 2024. Both subsidiaries were audited by another auditor, not the principal auditor, in FY2023 and FY2024. The parent's real exposure sits elsewhere: outstanding loans and advances to Mantora Oil Products Pvt. Ltd. of ₹4,112.70 lacs, alongside capital work in progress of ₹5,84,25,990.18 on the Kanpur township project as at 31 March 2026, which involves Mantora among its six parties.
  5. Promoter family controls board and remuneration decisions with unanimous votes, while independent directors turned over twice in three years Minor - Promoter shareholding declined from 74.99% at 31 March 2024 to 53.18% at 31 March 2025 and 54.42% at the latest filing, with pledge at 0.00% throughout. All three independent directors resigned effective 5 September 2023 and were replaced the same day. All shareholder resolutions on director appointments and reappointments from 2020 through 2022 passed with 100% of valid votes in favour and zero against.
  6. Statutory auditor Mehrotra & Co has held the engagement since 2017, but secretarial and internal auditor positions have churned repeatedly Minor - Mehrotra & Co was originally appointed at the 32nd AGM on 30 September 2017 and re-appointed for a final five-year term at the AGM held 30 September 2022, passed unanimously. The Secretarial Audit Report for FY2021-22 qualified the MR-3 report on two counts, including that audit reports submitted to the stock exchange were given by the statutory auditor who did not hold a valid Peer Review Board certificate; the certificate was obtained effective 29 July 2022 after year-end. On 1 May 2026, the Board appointed a new Secretarial Auditor to fill a casual vacancy caused by the resignation of M/s Shivam Grover & Associates.
  7. A recurring pattern of minor SEBI LODR compliance lapses, all resolved with small fines or corrective filings Minor - In FY2024-25, Assam Entrade filed related party transaction disclosures one day late, and BSE levied a fine of ₹5,900 which was paid. In FY2022-23, the company received a SEBI show-cause letter for non-compliance in submission of the Corporate Governance Report; it responded citing an inadvertent typo error, submitted a revised report the same day, and no further action was taken by SEBI. The FY2025-26 Board's Report states there were no significant or material orders passed by Regulators impacting going concern status or future operations.

What to watch

Bottom line: This is a disclosed and audited record with a clean opinion every year, but the substance underneath is concentrated and partly contradictory. The entire loan book sits with one promoter-controlled borrower whose repayment capacity has never been disclosed, the accounts say one thing and the auditor's own CARO disclosure says another, and the provisioning method the auditor has flagged for three years has not changed. The cash-flow record is weak against reported profits, and the real exposure may sit in a township project carried as work-in-progress. Watch the Mantora loan, the ECL call-out, and what the FY2026-27 annual report says about the Kanpur project.