Suratwwala Business Group Ltd Forensic Report - SOIC x StockScans Report

as of Sep 2026

Suratwwala Business Group's record carries a clean audit history and a promoter group that owns nearly three-quarters of the company, but the financial statements show a persistent gap between reported profit and cash. The company has also repeatedly sought shareholder approval for related-party deals with promoter-linked firms, and has changed how it recognises revenue for newer contracts.

Key findings

  1. Reported profits do not convert to operating cash Major - Over the five years FY2022-FY2026, cumulative operating cash flow was negative ₹15 crore against cumulative profit of ₹112 crore, a CFO/PAT ratio of -0.14x. The ratio was negative in three of those five years, including -0.16x in FY2026 and -0.43x in FY2025. The company capitalises borrowing costs attributable to project development as part of project cost, suspending capitalisation only when work is interrupted for extended periods.
  2. Recurring shareholder approval for promoter-linked related-party transactions Major - Shareholders have approved material related-party transactions with promoter-linked LLPs every year since FY2022-23, with limits of ₹100-150 crore per counterparty against annual revenue of ₹35.63-143 crore. The FY2025-26 resolutions with Suratwwala Properties LLP, Suratwwala Natural Energy Resource Private Limited, and Suratwwala Royyal Hill Properties LLP each passed with 100% of votes polled, but only 3.91% of outstanding shares participated, all from public non-institutions. The promoters are also Designated Partners of these LLPs.
  3. Prior-period error restated opening equity, and revenue policy changed Major - The company corrected material prior-period errors under Ind AS 8, increasing opening equity as of April 1, 2023 by ₹19.15 crore, comprising an understated deferred tax asset of ₹8.74 crore and excess revenue of ₹10.42 crore reversed during IGAAP-to-Ind AS migration. The auditor issued an Emphasis of Matter on the FY2023-24 statements, noting comparative information was not restated as impracticable. Separately, revenue recognition for commercial office space changed from point-in-time to over-time for contracts entered on or after January 1, 2025.
  4. Revenue surged 298% while contract balances swung sharply Major - Revenue from operations grew 298.55% to ₹142.99 crore in FY26 from ₹35.88 crore in FY25. Contract liabilities stood at 107.68 crore in FY26 versus 21.6 crore in FY25, while contract assets stood at 83.82 crore versus 9.13 crore. No expected credit loss provision was made on trade receivables; only specific doubtful balances were provided for.
  5. Unqualified opinions with revenue-recognition KAM and audit-trail limitation Minor - Parag Patwa & Associates issued unqualified opinions on the FY2025-26 standalone and consolidated statements, reporting a Key Audit Matter on revenue recognition under Ind AS 115. The auditor noted payroll accounting software is operated by a third-party service provider and, absent a SOC1 type 2 report, was unable to comment on audit-trail compliance under Rule 11(g), though no tampering was found. CARO responses for FY2025-26 reported no fraud, no wilful default, no benami property proceedings, and no undisputed statutory dues outstanding for more than six months.
  6. Statutory auditor changed in FY2023-24 after tenure ended Minor - SSPM & Company LLP's tenure ended at the 16th AGM, and Parag Patwa & Associates was appointed for five years covering FY2023-24 to FY2027-28. The new auditor's CARO report for FY2023-24 confirmed resignations of statutory auditors occurred during the year, and that issues raised by the outgoing auditor were taken into consideration. The appointment was passed unanimously at the AGM held 30 September 2023.
  7. Promoter family controls the board and its own pay Minor - Mr. Jatin Suratwala and Mr. Manoj Suratwala each had remuneration fixed at ₹84,00,000 per annum for five-year terms effective 30 November 2024, and their sister Mrs. Hemaben Sukhadia was re-appointed with remuneration up to ₹11,40,000 per annum. Votes on these resolutions drew minimal public participation, with as little as 7.23% of outstanding shares polled. Independent-director and CFO seats have turned over repeatedly, including two CFO changes in two years.

What to watch

Bottom line: This is an audited record with unqualified opinions for FY2025-26 and an auditor change in FY2023-24, but the gap between profit and cash, the sanctioned facilities, and the recurring related-party approvals are the three things to understand. The revenue recognition change and the pending NCLT order will determine how the FY2026-27 numbers read. Watch the RPT vote at the next AGM and the Prachay Capital interest trigger.