Control Print’s standalone business is profitable and consistently earns clean audit opinions, but the consolidated picture is dominated by unaudited, deeply loss-making foreign subsidiaries that erased 84% of standalone profit in FY26. Two things demand attention: ₹4.99 crore of interest on loans to a wholly owned foreign subsidiary is overdue beyond 90 days, and a post-period deal to buy intellectual property from the insolvent Italian unit routes further cash into the loss-making overseas group.
Key findings
- Clean audit opinions rest on unaudited foreign subsidiaries that lost ₹19.95-31.24 crore in FY25-FY26
Major- Both standalone and consolidated audit opinions were unqualified every year from FY19 to FY26. Yet the foreign subsidiaries whose aggregate losses were ₹19.95 crore in FY25 and ₹31.24 crore in FY26 were unaudited throughout, their financials certified by directors and translated by management. The CARO report for FY26 notes that ₹4.99 crore of interest on loans to a wholly owned foreign subsidiary is overdue more than 90 days. - Receivables are growing faster than revenue, with rising disputed and credit-impaired balances
Minor- Standalone trade receivables grew 30% from 88.13 crore to 114.57 crore in FY26, while revenue grew 13% from ₹425 crore to ₹482 crore. Disputed receivables with significant increase in credit risk rose from 1.85 crore to 2.31 crore, and undisputed credit-impaired receivables increased from 1.16 crore to 1.5 crore, fully provided. - A ₹6.33 crore arbitration award stayed since 2020 remains the principal contingent liability
Minor- An arbitration award of ₹6.33 crore plus 12% interest from August 2012 was passed against the company in favour of Videojet Technologies Inc., with a counter-award of ₹1.01 crore in the company’s favour. The Bombay High Court stayed the award on 28 February 2020 and directed a bank guarantee of ₹2.3 crore, which the company furnished; no provision has been made in any year since, as management considers the matter pending final adjudication. - Statutory auditor in place since at least FY19; cost auditor resigned mid-term citing surrender of practice certificate
Minor- Jhawar Mantri & Associates has served as statutory auditor continuously from FY19 through FY26, with no resignations, and total fees rose from ₹36.88 lakhs to ₹49.82 lakhs over that period. The cost auditor resigned effective 28 September 2024 citing surrender of his Certificate of Practice, and a replacement was appointed within a month.
What to watch
- IP purchase from CP Italy S.r.l. The IP assignment agreement with CP Italy S.r.l., effective 08 May 2026, for a total consideration of Euro 28.60 Lakhs was disclosed as a non-adjusting post-period event in the FY26 annual report.
- Videojet arbitration. The Bombay High Court stay has been in place since 28 February 2020; the final ruling will determine whether the ₹6.33 crore contingent liability crystallises.
Bottom line: This is a standalone business with a clean audit record and real operating profit, but the consolidated entity tells a different story. The foreign subsidiary expansion has produced mounting losses, ballooning intercompany loans with overdue interest, and a post-period IP deal that moves more cash into an insolvent unit. The audit opinions are unqualified, yet the subsidiaries that drive the consolidated loss are unaudited. Watch the Italian IP transaction, the arbitration ruling, and the shareholder votes at the coming AGM.