Green Asia Impex Ltd Forensic Report - SOIC x StockScans Report

as of Sep 2026

Green Asia Impex comes to its IPO reporting expanding profits on paper, but its core operations have drained cash rather than producing it. Three matters require close attention: the company sold its sole operating subsidiary to its own promoters (the founding owners who run the business) while routing substantial sales through promoter-linked entities, customer bills took 125 days to collect as working-capital debt climbed, and pending tax demands equal a significant portion of the company's net worth (its total assets minus total liabilities).

Key findings

  1. Promoters bought sole subsidiary and routed large sales through family-linked entities Major - In FY25, the company sold all shares in its only subsidiary, Green Asia Cold Storage Private Limited, to promoters Pasupuleti Venkata Ramarao and Pasupuleti Meenakshi for ₹4.14 crore and ₹1.36 crore by adjusting existing promoter loans. Following the sale, the company removed ₹1.07 crore of goodwill, which is the balance-sheet value recorded for paying more than a business's tangible assets were worth. The company also sold ₹68.18 crore of goods in FY23, ₹80.11 crore in FY24, and ₹41.69 crore in FY25 to promoter-linked SG Exports, which still owed ₹21.04 crore on 30 September 2025 after both promoters disassociated from it on 13 April 2024. In the six months ended 30 September 2025, the company directed ₹6.70 crore of purchases to Green Asia Marine LLP and ₹2.05 crore of sales to Green Asia Corp, while holding ₹1.59 crore in interest-free loans from the Managing Director that he can recall at any time as of 31 January 2026.
  2. Negative operating cash flow and expanding unpaid bills diverge from reported profit Major - Operating cash flow stayed negative at ₹(1,499.90) lakh in FY24 and ₹(505.82) lakh in FY25, even as paper profit grew from ₹22.43 lakh in FY23 to ₹10.35 crore in FY25. Uncollected customer bills rose to ₹61.34 crore by 30 September 2025, representing 204% of net worth and taking 125 days to collect, with zero money set aside for potential bad debts despite bills jumping by ₹39.23 crore in FY25 alone. Unsecured advances given to suppliers grew to ₹16.99 crore by 30 September 2025 without collateral, while short-term borrowings used to fund daily operations reached ₹67.08 crore out of ₹75.23 crore in total debt.
  3. Material tax demands and contingent claims equal over half of past net worth Major - The company faces an income tax demand under Section 143(3) of ₹7.89 crore or ₹8.74 crore for assessment year 2022-23 under appeal, against which only ₹29.62 lakh has been deposited under protest. This single tax dispute equaled 51.00% of restated net worth (previously reported financial numbers corrected and re-presented for this offer) as of 31 March 2024, 30.55% as of 31 March 2025, and 23.63% as of 30 September 2025. Across four pending direct tax cases, total quantifiable claims reached ₹10.69 crore, including a separate ₹65.65 lakh claim for assessment year 2022, all sitting as contingent liabilities (potential bills the company must pay if legal appeals fail).
  4. Statutory examiner resigned, audit fees surged 538%, and corporate filings faced multi-year delays Major - Preceding statutory auditor M/s Dhulipala Viswanand and Associates left on 30 September 2024, after which audit fees rose 538.82% from ₹2.04 lakh in FY24 to ₹13.00 lakh in FY25 under replacement examiner M/s Sreedar Mohan & Associates. Legal and professional expenses also jumped 753.08% to ₹48.41 lakh in FY25. The company recorded extensive secretarial filing delays with the Registrar of Companies, including deposit returns delayed by up to 1,887 days, director filings by 1,558 days, and financial statement filings by 1,267 days. Statutory tax deposits were repeatedly late, including tax deducted at source delays of up to 359 days in FY24, while two independent directors resigned on 22 September 2025 before being re-appointed on 1 December 2025.
  5. Seafood expansion relies entirely on IPO funds without bank appraisals or orders Minor - The company intends to spend ₹50.78 crore on a new seafood plant in Chinnayagudem to add 16,200 metric tonnes of capacity, funding ₹49.54 crore from this offer's proceeds with no backup bank loans arranged. No bank or independent monitoring agency has appraised the expansion, and the company has not placed binding equipment purchase orders. Existing quick-freezer capacity was utilized at only 8.46% in FY25 and 6.71% in the six months ended 30 September 2025. Critical project approvals, including factory layout clearance, fire safety approval, water permissions, and consent to operate, were pending or not yet applied for as of the prospectus dates.
  6. Seafood and chilli sales rely on concentrated buyers without foreign exchange protection Minor - The top ten shrimp buyers generated 74.75% of operations revenue in the six months ended 30 September 2025 and 57.66% in FY25. The dried chillies business was almost entirely dependent on China, which contributed 99.64% of chillies revenue in the six months ended 30 September 2025, with eight to ten buyers accounting for 100.00% of that segment's sales. The company also held ₹97.13 crore in unhedged foreign currency exposures as of 30 September 2025 with no formal currency hedging policy to protect against exchange-rate movements.

What to watch

Bottom line: This is an expanding seafood and commodities business where reported profit growth has not yet converted into operational cash flow. The structural risks sit in heavy promoter-related transactions, high working capital locked up in unpaid customer balances, and significant tax claims under dispute. Prospective investors should weigh these operational demands and watch whether the company secures its missing factory permits and converts its equipment quotations into binding purchase orders.