Mufin Green Finance's record shows a company whose reported profits have not been backed by cash generation for three straight years, and whose borrowing and related-party structures have grown rapidly. The company has cycled through four statutory auditors in six years, with the last three resigning before completing their terms. Its promoter has repeatedly raised capital through preferential allotments while his shareholding has fallen, and its revenue quality is deteriorating as NPAs and unsecured advances escalate.
Key findings
- Repeated shareholder approvals for promoter-linked lending, with the roster expanding to ₹50-100 crore caps
Major- Shareholder approval was sought for loans to APM Industries Limited up to ₹5 crore in FY2020-21, expanding to four entities capped at ₹50 crore each by FY2025-26. The counterparty list grew to seven related parties in FY2024-25 and FY2025-26, including Hindon Mercantile Limited at ₹100 crore caps. The promoter entity Hindon Mercantile Limited simultaneously received preferential warrants and equity allotments, including 76,53,061 warrants at ₹98 per warrant allotted March 04, 2026. - Reported borrowings understate economic obligations, with nearly every facility secured by pledged deposits and guarantees
Major- Overdraft facilities of ₹66.68 crore are secured by term deposits of ₹71.71 crore, and term loans carry corporate guarantees from Hindon Mercantile Limited and personal guarantees from Shri Kapil Garg. Unsecured advances grew 4.6x to ₹712.33 crore in one year, while borrowings outside India increased to ₹252.83 crore from ₹46.64 crore. The Board's borrowing powers were increased to ₹2,000 crore at the AGM held September 29, 2025. - Four statutory auditors in six years, with the last three resigning before completing their terms
Major- M/s Narendra Singhania & Co. resigned effective August 23, 2019, citing "pre occupation". M/s Chaturvedi & Partners resigned effective August 12, 2023, and M/s Tattvam & Co. resigned via letter dated August 14, 2025. The FY2025-26 CARO clause xviii states the incoming auditor "took into consideration issues, objections or concerns raised by outgoing auditors". - Revenue quality deteriorating as NPAs escalate and interest on impaired assets is recognised only on receipt
Major- Standalone Gross NPAs rose from 11.08 crore (3.09% of Personal Loans exposure) at March 31, 2024 to 20.98 crore (4.31%) at March 31, 2025. Interest income on credit-impaired (Stage 3) assets is recognised only as and when received, not on accrual. The Group's revenue recognition policy retains construction contract revenue and trading revenue, despite the Parent being described as engaged in Investment and Credit. - Operating cash flow deeply negative for three straight years while reported PAT stayed positive
Major- Standalone CFO was -6.95 crore in FY2025-26, -1.53 crore in FY2024-25, and -3.59 crore in FY2023-24, against PAT of ₹28.26 crore, ₹19.24 crore, and ₹16.06 crore respectively. CFO/PAT ratio was -24.59x in FY2025-26, -7.93x in FY2024-25, and -22.33x in FY2023-24. No dividend was recommended for FY2025-26, with the Board stating it decided to conserve capital. - Reported profit increasingly disconnected from cash generation, with CFO/PAT at -24.59x in FY26
Major- Mufin Green Finance Ltd reported PAT of ₹28.26 crore in FY26 with CFO of -₹695 crore. The company transferred ₹5.65 crore to the RBI-mandated reserve fund in FY26. Expenses related to the aborted LKP Finance acquisition were recognized as "Exceptional Items". - A ₹9.18 crore stamp duty demand disputed since FY2024-25, with insolvency claims of ₹23.83 crore against Gensol-group lessees
Minor- A demand of ₹9.18 crore was raised under the Rajasthan Stamp Act, 1998 on transfer of assets during the demerger from APM Industries Limited, with the company expecting reimbursement from the sellers. Claims of ₹23.83 crore were filed against three Gensol-group lessees, with only ₹1.48 crore admitted by the resolution professional of Blu-Smart Charge Private Limited as at March 31, 2026.
What to watch
- Warrant conversion. The balance 75% on 76,53,061 warrants allotted to Hindon Mercantile Limited on 04 March 2026 is payable within 18 months from issue date.
- Stamp duty petition. The petition for withdrawal of the ₹9.18 crore demand was pending as at March 31, 2026.
- Gensol claim verification. Claims of ₹7.67 crore against Gensol EV Lease Private Limited and ₹10.74 crore against Gensol Engineering Limited remained under verification as at March 31, 2026.
- RBI key-person appointments. Completion of mandatory CCO and CISO appointments remained pending as of the Secretarial Audit Report dated September 02, 2026.
- Working capital term loan maturity. A bank loan matures on September 19, 2026.
Bottom line: This is a disclosed and shareholder-approved record, but the pattern is consistent: reported profit is not backed by operating cash, and nearly every debt facility is secured by pledged deposits and promoter guarantees. The risk sits in the gap between the profit line and the cash line, and in the concentration of exposure to promoter-linked entities. Watch the warrant conversion, the Gensol claim outcomes, and whether the RBI inspection cycle changes the picture.