Maharashtra Seamless Ltd's standalone financial statements have been clean, but its consolidated record is not: the group audit has been qualified in four of the last seven years, every time tied to the same foreign subsidiary's failure to determine fair value of investments under FRS 109 and prior-year impairment provisions of USD 9,357,500, and a loss-making coal joint venture. The company has also repeatedly waived interest on loans to its own loss-making entities, and used accounting choices that shift profit across periods. Governance is a live issue too, with public institutional shareholders repeatedly voting against Jindal family remuneration and board-continuation resolutions.
Key findings
- Consolidated audits qualified four times in seven years, driven by one foreign subsidiary and a coal JV
Critical- The consolidated audit opinion was qualified in FY2019-20, FY2020-21, FY2023-24, and FY2025-26, and unqualified only in FY2021-22 and FY2022-23. The FY2025-26 qualification, dated 22 May 2026, cites a management-certified joint venture, Gondkhari Coal Mining Ltd, with "accumulated losses and its net worth has been fully eroded". The FY2023-24 qualification arose from the same JV's auditor report, which stated complete erosion of net worth and material uncertainty about going concern. The FY2020-21 and FY2019-20 qualifications stemmed from the foreign subsidiary's failure to determine fair value of investments under FRS 109 and prior-year impairment provisions of USD 9,357,500. - Loss-making overseas vehicles wound down, while two new Indian subsidiaries incorporated for a demerger
Major- As of 31 March 2026, the company had three subsidiaries after voluntarily striking off two wholly owned foreign subsidiaries and one foreign subsidiary during FY2025-26. The board approved strike-off of five overseas entities, with RBI/FEMA Authorised Dealer approval pending. Dev Drilling Pte. Ltd. had unabsorbed losses of ₹159.40 crore as at FY2023-24. Two new wholly owned subsidiaries were incorporated post-balance-sheet: MSL Seamless Tubes Limited on 15 May 2026 and United Seamless Limited on 16 May 2026. On 22 May 2026, the board approved a Scheme of Arrangement for demerger of two business undertakings into these subsidiaries. - Interest waived on loans to loss-making subsidiary and JV, with auditor flagging understated profits
Major- In FY2025-26, the company waived interest on loans to Jindal Premium Connections Pvt. Ltd. and Gondkhari Coal Mining Ltd. due to inadequacy of profit. This waiver also occurred in FY2023-24 and FY2022-23. In FY2021-22, the auditor's Emphasis of Matter stated the company had not recognized interest income on a loan to an Indian subsidiary, not in accordance with Section 186(7) of the Companies Act, 2013, and that standalone profits were consequently understated. The same non-recognition was flagged in FY2020-21. - Reported debt understates economic obligations via subsidiary borrowings and a related-party ECB
Major- A consolidated ECB facility of USD 49.75 million (₹375.04 crore) was availed on 31/03/2020 from IndusInd Bank to acquire Rig Jindal Explorer from Star Drilling Pte. Ltd., an associate company, secured by mortgage on the asset. The ECB outstanding declined to ₹Nil as on 31 March 2024. A term loan of ₹375 crore for the USTPL acquisition was secured against USTPL's assets. Secured loans of ₹147.01 crore and ₹75.81 crore obtained in March 2021 were secured by corporate guarantees from the holding company. The MD&A for FY2023-24 states the company has no long-term debt. - Accounting-policy choices shift reported profit across periods
Major- In FY2025-26, the company capitalised ₹87.85 crore of refurbishment expenses on the rig "Jindal Explorer" under Ind AS-16, depreciating it over a 3-year contract period, increasing depreciation by ₹10.91 crore, flagged as an Emphasis of Matter. The FY2022-23 statements were prepared after giving effect to the amalgamation of United Seamless Tubulaar Private Limited, with comparatives restated as if the amalgamation occurred from the beginning of the comparative year. In FY2023-24, the company recognised a net fair value gain of ₹71.20 crore on unquoted equity shares. In FY2019-20, the company opted for the concessional tax rate, writing back deferred tax liability of ₹87.69 crore. - Promoter family consolidates control; public institutions repeatedly dissent
Major- Promoter shareholding rose from 68.87% to 70.28% over the latest year. Mr. Dharam Pal Jindal is father of Mr. Saket Jindal (Managing Director) and Mr. Raghav Jindal (Joint Managing Director), all serving on the Board simultaneously. Public Institutions voted 20.63% against Mr. Saket Jindal's reappointment on 12 March 2025. They voted 59.36% against continuation of Mr. Dharam Pal Jindal at the 28 August 2024 AGM. Special resolutions were passed on 26 September 2020 to waive excess managerial remuneration paid to Shri D. P. Jindal and Shri Saket Jindal for FY2019-20. No CFO was in place from 30 April 2019 to 14 November 2019. - A 17-year-old IOCL dispute and unfulfilled EPCG export obligations
Minor- IOCL raised a claim of ₹17.98 crore in FY2008-09; a performance bank guarantee of ₹8.53 crore was realized by IOCL, and the matter went to arbitration with both parties appealing to the Delhi High Court. The company provided a Bank Guarantee of ₹24.50 crore in favour of the Registrar General, Delhi High Court, reflected as a liability pending final disposal. Under the EPCG scheme, duty saved on imports during FY2023-24 was ₹7.31 crore, with an export obligation of ₹43.85 crore to be fulfilled within eight years, and export obligation fulfilled till date was ₹Nil. This pattern of nil fulfilment extends back to FY2019-20.
What to watch
- Gondkhari Coal Mining qualification. Whether the going-concern qualification recurs for a fourth consecutive year, anchored to the FY2025-26 Annual Report period ended 31 March 2026.
- Demerger scheme filing. The Scheme of Arrangement for demerger into MSL Seamless Tubes Limited and United Seamless Limited, approved by the board on 22 May 2026, to be filed with stock exchanges.
- RBI/FEMA approval. Pending approval for voluntary strike-off of five overseas entities, as of FY2025-26.
- IOCL appeal. Final disposal of the appeal pending before the Delhi High Court, as disclosed in the FY2025-26 Annual Report.
- EPCG obligations. Fulfilment of export obligations of ₹43.85 crore within eight years from license issue, as disclosed in the FY2023-24 Annual Report.
- HDFC loan repayment. Repayment of the unsecured term loan commences December 2026 in 12 equal quarterly instalments.
- Final dividend. Approval and payment of the ₹10 per share final dividend for FY2025-26 at the 38th AGM, per the notice dated 24 August 2026.
Bottom line: This is a record of a company that has made money in its core business but has a long, disclosed trail of value destruction and governance friction around it. The risk is not hidden; it is in the consolidated audit qualifications, the impaired overseas investments, and the repeated interest waivers to its own loss-making entities. The demerger and the pending regulatory approvals are the next things to watch, along with whether the audit qualifications recur.