Network People Services Technologies Ltd has a mixed record: clean audit opinions and no fraud or default findings sit alongside a year of negative operating cash flow, promoter share sales, and rapid leadership turnover. The FY2025-26 filings show a company in transition, with the shift to TSP business straining working capital and the boardroom seeing two resignations within five months.
Key findings
- Promoter-directors sold shares while seeking higher pay, and two directors quit
Major- Promoters Savita Vashist, Deepak Chand Thakur, and Ashish Aggarwal sold 5,33,333 shares (2.75% of voting capital) on 12 Aug 2025, reducing combined promoter holding from 67.53% to 64.78%. The FY2024-25 AGM notice sought approval for remuneration to all three executive directors that may exceed SEBI LODR limits, and disclosed that Ms. Vashisht's pay exceeded the 1%-of-net-profits limit under Section 197(1) of the Companies Act, while remaining within the overall 11% ceiling. Mr. Abhishek Mishra resigned as Independent Director effective 1 Apr 2026, about six months after shareholders approved his second term, and Mrs. Savita Vashist resigned as Executive Director effective 24 Aug 2026. - Stock exchanges fined the company for missing in-principle approval; a monitoring agency flagged a deviation
Minor- NSE and BSE each fined the company ₹50,000 (plus GST) for non-compliance with the in-principle approval requirement before a preferential issue; the company paid ₹59,000 to each. CARE Ratings flagged a ₹3.18 crore deviation in use of issue proceeds, which the Board addressed and confirmed resolved by May 2026. - Clean audit opinions, with the only caveat being the audit-coverage split
Minor- Singhi & Co. issued an unqualified opinion on FY2025-26 standalone statements, and Keyur Shah & Co. did the same for FY2024-25. No fraud, wilful default, benami proceedings, or fund-conduit issues were reported in either year. However, the FY2025-26 consolidated opinion relied partly on other auditors for two subsidiaries and on management-certified statements for one unaudited foreign subsidiary. - Statutory auditor rotated on schedule with no disputes
Clean- Keyur Shah & Co. completed its five-year term, and shareholders approved Singhi & Co. at the 12th AGM on 29 September 2025 with 99.99% votes in favour. CARO confirms the change was due to tenure completion. - Related-party dealings confined to subsidiary funding and routine approvals
Clean- Related-party transactions were limited to subsidiary investments and omnibus-approved loans within board limits. No loans or advances to promoters, directors, KMPs or related parties were outstanding as at 31 March 2026. No trade or other receivables were due from directors, officers, or firms or private companies in which any director is a partner, director or member. CARO confirmed the investment and loan to the subsidiary were not prejudicial to the company's interest.
What to watch
- 13th AGM. Scheduled for 29 Sep 2026, including Resolution 3 for re-appointment of Mr. Deepak Chand Thakur as Director retiring by rotation.
- Final dividend payment. The ₹2 per share dividend for FY2025-26 is payable on or after 06 Oct 2026, subject to member approval.
- FY2026-27 results. Watch whether receivables days and operating cash flow normalise as management expects, and whether TSP-related working capital pressures moderate.
- ESOP grants. Any future grants under the amended NPST ESOP 2023, effective 1 Apr 2026, carry exercise price discretion of 30%-100% of FMV vested in the NRC.
Bottom line: This is a company with a clean statutory record, unqualified opinions, no fraud, no defaults, but a year of real strain. The risk is concentrated in two places: the negative FY26 cash flow from operations, and the governance signals from promoter share sales and rapid director departures. Read the FY26 cash flow and receivables lines with that in mind, and watch the FY27 results for whether the working capital pressure eases.