Latent View Analytics Ltd Forensic Report - SOIC x StockScans Report

as of Jul 2026

Latent View Analytics’ record carries a net-cash balance sheet, but three things demand attention: a ₹220.33 crore claim from selling shareholders over a stalled acquisition that the auditor warns could hurt the company, ₹245 crore of goodwill from that same deal sitting on the books, and a four-year pattern of IT-control qualifications that the auditor has not been able to close, now joined by a new audit-trail qualification.

Key findings

  1. The Decision Point deal created ₹245 crore of goodwill and a derivative that swung from loss to gain Major - The July 2024 acquisition of 70% of Decision Point for ₹331.5 crore produced goodwill of ₹244.88 crore and newly identified intangible assets of ₹132.50 crore. The derivative for the forward contract on the remaining 30% stake swung from a fair value loss of ₹29.06 crore in FY2024-25 to a gain of ₹10.15 crore in FY2025-26. The impairment test as at March 2025 used a long-term growth rate of 5.00% and a post-tax discount rate of 17.30%.
  2. A recurring IT-control qualification has persisted for four years, joined by a new audit-trail qualification Major - The auditor has qualified the proper-books statement every year from FY2022-23 through FY2025-26 because the backup of certain electronic books was not maintained daily on servers physically located in India. In FY2025-26, a new qualification was added because one accounting software lacked the audit-trail feature from April 1, 2025 to March 20, 2026, the new ERP’s audit trail was not enabled at the database level from October 1, 2025, and for three other software the auditor could not comment on whether the audit trail operated throughout the year. The internal-financial-controls opinion remained unqualified in every year.
  3. Promoter-family directors proposed identical pay under unchanged terms Minor - A.V. Venkatraman and Pramadwathi Jandhyala, spouses who together control 65.1% of the company, are each proposed to receive total compensation of ₹2.10 crore per annum for the 2026-2031 term, with terms unchanged from their 2021-2026 term. At the FY2022-23 AGM, 27.46% of public institutional votes were cast against the re-appointment of A.V. Venkatraman. The average increase in remuneration for Managerial Personnel in FY2025-26 was 49.36%, compared to 27.22% for other employees.
  4. Nine-tenths of sales are intra-group, and intercompany loan rates vary materially Minor - Related-party sales were 89.74% of total sales in FY2026 and 91% in FY2025. A loan to the UK subsidiary carries 7% interest, while a loan to the Netherlands subsidiary was repriced from 4.50% to ESTR plus 1.75% effective August 1, 2025. The company recognised an arm’s-length transfer pricing adjustment of ₹18.4 crore under other expenses for the previous year.
  5. Operating cash conversion has weakened to 0.81x, while IPO funds remain partly unutilised Minor - The ratio of operating cash flow to profit after tax declined from 0.98x in FY21 to 0.81x in FY26, with FY26 operating cash flow of ₹165 crore against PAT of ₹202 crore. The company held cash and investments of ₹1,274.4 crore as of March 31, 2024, including unutilised IPO funds of ₹147.9 crore. Return on Capital Employed was 15.16% in FY26, down from 15.62% in FY23.
  6. A one-time ESOP-related deferred tax asset lowered the Q4 FY26 tax rate, while the SEZ holiday expiry is normalising the ETR Clean - The consolidated effective tax rate rose from 17.9% in FY23 to 19.5% in FY24 as the Section 10AA tax holiday for SEZ Unit 1 in Chennai expired. In Q4 FY26, a deferred tax asset created for unexercised ESOPs in the US subsidiary reduced the effective tax rate from the typical \~25% to \~22%, and management confirmed “Going forward, we will not see any such impact”.
  7. Auditor rotated from B S R & Co. to Price Waterhouse at the 18th AGM Clean - B S R & Co. LLP completed its second consecutive term and became ineligible for reappointment at the conclusion of the 18th AGM. Shareholders approved Price Waterhouse Chartered Accountants LLP for five years with 99.9975% votes in favour. Price Waterhouse issued the FY2025-26 audit report dated May 16, 2026.

What to watch

Bottom line: This is a net-cash company with a disclosed governance structure, but the auditor has qualified the proper-books statement for four consecutive years and added a new audit-trail qualification in FY2025-26. The risk concentrates in one place: the Decision Point acquisition, which has already produced a ₹220 crore claim, ₹245 crore of goodwill, and a derivative whose value can swing by ₹39 crore in a year. Watch the resolution of the SPA dispute and the next goodwill impairment test, together they will determine whether the deal’s carrying value holds.