Shipping Corporation of India Land & Assets Ltd Forensic Report - SOIC x StockScans Report

as of Aug 2026

Shipping Corporation of India Land & Assets Ltd (SCILAL) has a single deferred-tax charge that drove the entire swing from loss to profit, operating cash flow has been negative for four straight years while dividends were paid, and the board has been structurally non-compliant with listing rules since listing, drawing repeated exchange fines.

Key findings

  1. A deferred-tax charge drove the loss and rebound, while land gains in Retained Earnings are restricted Major - SCILAL recognised a Deferred Tax Liability of ₹238.34 crore on MTI Land under Ind AS 12, following the Finance (No. 2) Act, 2024 withdrawing indexation benefit for long-term capital gains arising on or after 23 July 2024. This charge produced the FY2024-25 net loss of ₹189.38 crore, and its absence produced the FY2025-26 net profit of ₹28.82 crore. Retained Earnings include ₹2,318.57 crore from the upward valuation of MTI Land, with a corresponding deferred tax liability of ₹238.34 crore; this amount is not available for dividend distribution.
  2. Operating cash flow is persistently negative and does not back reported profit, while dividends continue to be paid Major - Operating cash flow was negative ₹60.77 crore in FY26, negative ₹49.42 crore in FY25, negative ₹379 crore in FY24, and negative ₹23.29 crore in FY23, while PAT was positive ₹28.82 crore in FY26, negative ₹189 crore in FY25, positive ₹47.49 crore in FY24, and positive ₹35.55 crore in FY23. Other income was ₹82 crore against PBT of ₹38 crore in the latest year, making other income 215.4% of PBT. The Board recommended a dividend of ₹0.55 per share for FY2025-26, with an outgo of approximately ₹25.62 crore, and the company paid ₹16.33 crore of the FY2024-25 dividend to the Government of India on 03.10.2025.
  3. Board has been structurally non-compliant for three years, no independent directors, no woman director Major - SCILAL had no independent directors throughout FY2023-24 and FY2024-25, and only one (Prof. (Dr.) K. Jayaprasad) from 15.04.2025 to 31.03.2026. The Board had no woman director in any of the three years, contrary to Section 149(1) of the Companies Act and Regulation 17(1)(a) of SEBI LODR. The Secretarial Auditor for FY2025-26 reported the Board was not constituted as required, and the Board fell below the minimum three directors from 24.02.2025 until 15.04.2025.
  4. NSE and BSE have repeatedly fined the company for the same governance lapses since listing Major - NSE and BSE levied fines for non-compliance with SEBI LODR Regulations 17(1), 18, 19, 20, and 21 for the quarters ended June 2025, September 2025, and December 2025, and fines were also imposed during FY2024-25. In FY2024-25, a total fine of ₹53,83,160 was imposed by each exchange for the period from listing date 19.03.2024 to 31.03.2025. Waivers were granted only for certain regulations, with an aggregate waived amount of ₹29,92,480.
  5. Entire purchase base and a fifth of revenue run through parent SCI Minor - For FY2025-26, 100% of total purchases (22.67 crore) were with related parties, and 18.50% of total revenue from operations (4.31 crore of 23.3 crore) was sales to related parties. Substantial revenue is earned from SCI via leasing of real estate assets under Framework and Service Agreements. AOC-2 states no related-party transactions during FY2025-26 were not at arm's length basis.
  6. Revenue depends on a single related-party customer, and receivables provisioning is discretionary Minor - The main customer for the Real Estate segment is SCI, which has taken on rent the majority of real estates received under the demerger scheme. The company does not provide for expected credit loss on trade receivables; provisioning is made on a case-to-case basis. Revenue was ₹23.30 crore in FY26 and ₹18.30 crore in FY25, while receivables days were 55.45 in FY26 and 34.90 in FY25.

What to watch

Bottom line: This is a company with a clean statutory audit record, but its financial reporting and governance carry structural weaknesses. The profit swing is an accounting event, not an operating one, and the business does not generate cash from operations while still paying dividends. The governance failure is the clearest risk: three years of a non-compliant board, documented by the company's own secretarial auditor and punished by exchange fines. Watch whether independent directors are appointed and whether the IHSC share transfer and property title issues get resolved.