Khadim India's record carries six straight years of unqualified audit opinions and clean CARO reports, with no fraud, wilful default, or fund-diversion findings. The record that needs attention sits in three places: a single-customer receivable that sat unchanged for years, an auditor who resigned over a fee cut and was replaced by a prior auditor at lower fees, and a promoter family that controls the board and executive pay with concentrated public institutional dissent.
Key findings
- A single-customer receivable sat unchanged for three years while revenue recognition stayed a Key Audit Matter
Major- Khadim reported ₹32.6 crore due from a single customer as at 31 March 2021, unchanged from a year earlier, and again unchanged as at 31 March 2022, each time exceeding 20% of gross financial assets. The balance then jumped to ₹70.4 crore due from two customers as at 31 March 2023. The auditor flagged revenue recognition as a Key Audit Matter in both FY2023-24 and FY2024-25, citing the risk of revenue being recorded before control transfers to wholesale customers, while the company's own FY2024-25 statements say no customer provides 10% or more of revenues and no single customer dues exceeded 20% of gross financial assets. - The statutory auditor resigned in 2021 over a fee cut; the replacement, a prior auditor, is up for a second term at lower fees
Major- Deloitte Haskins & Sells resigned on August 11, 2021, stating the proposed fee reduction was "not commensurate with the efforts involved in the audit". The Board appointed Ray & Ray the same day; Ray & Ray had previously been the company's auditors till FY 2012-13. Consolidated audit fees have fallen from ₹0.42 crore in FY2020-21 to ₹0.26 crore in FY2024-25, and the 45th AGM notice dated September 2, 2026 proposes Ray & Ray's re-appointment for a second five-year term. - A promoter family controls the board and executive pay, with public institutional dissent concentrated against the chairman
Major- Mr. Siddhartha Roy Burman's salary ceiling was raised from ₹22,50,000 per annum in 2021 to ₹28,05,000 per month in 2025, and his son Mr. Rittick Roy Burman's ceiling from ₹26,91,444 to ₹70,00,000 per annum over the same period. Both were re-designated for fresh three-year terms from April 01, 2025. Public institutional shareholders voted 100% against the chairman's re-designation and an independent director's re-categorisation in the June 2025 postal ballot, while promoter votes were 100% in favour; the chairman's 2023 re-appointment drew 5.4678% votes against, the highest dissent that year. - Reported profits are shaped by a demerger that moved the distribution business to discontinued operations
Major- The distribution business was demerged into KSR Footwear Limited with appointed date 1 April 2025, sanctioned by NCLT Kolkata Bench on 27 March 2025, and presented as discontinued operations in FY2024-25 with comparatives restated. Under the scheme, KFL issued one share for every Khadim share held, with KFL to become an independent listed company. The accounting policies themselves show no material estimate changes and no Level-3 fair-value positions across the years reviewed. - Borrowings are secured by promoter and group guarantees, with no defaults reported
Minor- Borrowings as of FY2022-23 were secured by hypothecation on inventory and receivables, collateral mortgages over properties in Kolkata and Bangalore, plus the personal guarantee of the Managing Director and a group-company corporate guarantee. The CARO report for FY2024-25 states there was no default in repayment of loans or interest, and the FY2023-24 report confirms the company was not a wilful defaulter. Forward contracts outstanding at FY2023-24 year-end were not designated under hedge accounting. - A multi-year land dispute and recurring disputed tax dues carry no provision and no cash-flow estimate
Minor- A 34.25-cottah land dispute at Laskarhat, Kolkata with the Kolkata Metropolitan Development Authority has been disclosed continuously from FY2018-19 through FY2022-23. Disputed statutory dues not deposited fell from ₹0.82 crore as at 31 March 2020 to ₹0.55 crore as at 31 March 2021. The company states the timing of cash flows is not practicable to estimate. - A two-subsidiary group where the Bangladesh unit is dormant and the Indian unit existed solely for the demerger
Minor- KSR Footwear Limited was incorporated on August 22, 2023 solely for the demerger of the distribution business; the scheme became effective May 01, 2025, after which KFL ceased to be a wholly-owned subsidiary. Khadim Shoe Bangladesh Limited, incorporated during FY2018-19, is not audited under the Act as it is not incorporated in India. The two subsidiaries' financial statements were audited by other auditors, reflecting total assets of ₹0.1 crore as at March 31, 2025. - Operating cash flow consistently exceeds profit, but no dividend has been paid for at least six years
Minor- CFO was ₹67.07 crore against PAT of ₹19.26 crore in FY2024-25, and CFO exceeded PAT in each of the prior three years. The Board recommended no dividend for FY2024-25 due to inadequacy of profits, and none was recommended in the prior four years. Interest coverage stood at 1.2x in the latest period and 1.16x in the latest full year, and ROCE was 10.81% in FY2025-26. - Six consecutive years of clean audit opinions and clean CARO reports
Clean- The standalone and consolidated audit opinions were unqualified in each year from FY2020-21 through FY2025-26. CARO reports found no fraud, no wilful default, no benami proceedings, and no fund-diversion in each of the five years through FY2025-26. Key Audit Matters were reported only in FY2020-21 and FY2024-25.
What to watch
- Auditor re-appointment vote. Shareholders vote on Ray & Ray's second five-year term at the 45th AGM, proposed in the notice dated September 2, 2026.
- 45th AGM, September 2026. Votes on continuation of Prof. (Dr.) Surabhi Banerjee as Independent Director beyond age 75 and re-appointment of Mr. Ritoban Roy Burman.
- IEPF transfer. Unclaimed dividend for FY ended March 31, 2019, with corresponding shares, transfers to IEPF on September 11, 2026.
- Supreme Court petition. A Special Leave Petition was pending 'for admission' as of the FY2024-25 annual report.
- KSR Footwear listing. KFL's application for listing on BSE and NSE follows the demerger effective May 01, 2025.
Bottom line: This is an audited record with six years of clean opinions and cash flow that consistently exceeds reported profit. The risk sits in governance and structure: a concentrated receivable, an auditor who left over fees and was replaced by a prior auditor at lower fees, and a promoter family whose re-appointments draw the only public dissent. Watch the September 2026 AGM votes and the listing of the demerged distribution business.