Team India Guaranty Ltd's record carries seven straight years of clean audit opinions and a litigation book that has been cleared to nil, but the FY2025-26 annual report, dated 14 August 2026, presents a sharper picture: the company is seeking shareholder approval to borrow ₹50 crore from promoter-linked entities against a ₹5.20 crore turnover, its operations burned 36.99 crore of cash, and control changed hands in November 2024 with a board reshuffle that included a relative as CEO and an independent director resigning before tenure.
Key findings
- Proposed promoter-linked borrowings of ₹50 crore are nearly 10x turnover
Major- The FY2025-26 AGM notice seeks approval for unsecured borrowings of up to ₹25 crore each from Team India Managers Limited (TIML), a Promoter and Related Party, and New Berry Advisors Limited (NBA), a Related Party, at 9% interest for up to one year. The combined ₹50 crore equals roughly 961.54% of audited FY2025-26 turnover of ₹5.20 crore. The same-period AOC-2, dated 14 August 2026, states there were no material related-party transactions during the year, and no valuation report was obtained for either facility. - Operations are deeply cash-negative; the company runs on loan recycling and other income
Major- Net cash used in operating activities was 36.99 crore in FY2025-26 versus 1.31 crore in FY2024-25, with loans given of 38 crore during FY2026 versus nil in FY2025. Other income of ₹2.14 crore was 465.2% of profit before tax of 1.39 crore in FY2025-26. No dividend was recommended for any year on record, and a promoter insider disposal of ₹33.69 crore occurred on 7 November 2024. - Control changed hands in November 2024, with a related CEO and rapid independent director turnover
Major- Bennett, Coleman and Company Limited sold 74.92% of voting share capital to Team India Managers Limited and the Saraogi family, with change of control concluded on 7 November 2024. Five directors resigned effective that same date, and five new directors were appointed, including Non-Executive Director Surajkumar Saraogi and Executive Director & CEO Niru Shiv Kumar Kanodia, who are relatives under Section 2(77) of the Companies Act. Independent Director Ashok Anant Paranjpe resigned effective 29 May 2026, before completing his five-year tenure that began 7 November 2024. - Recovered own-share certificates are repeatedly credited to profit at Re. 1 each
Major- When own share certificates previously written off became available, they were included as inventory at Re. 1 per security, crediting the profit & loss account. This same policy appears in every year's notes from FY2019-20 through FY2024-25. The average effective tax rate was 1.1% versus the statutory 25.2% over two years, and in FY2024-25 the Reserve Fund transfer figures conflict: Note 31 states ₹46.94 lakh while the note on p.88 states ₹35.84 lakh. - A proposed acquisition of 4A Financial Technologies collapsed mid-transaction
Minor- The Board approved on 13 August 2025 the acquisition of 100% of 4A Financial Technologies Private Limited and a preferential allotment of 22,48,270 shares at ₹285 each. Only 62.414% of the target's equity was transferred by 4 March 2026, and the acquisition and allotment stood cancelled with no shares issued. The company had no subsidiary, joint venture or associate as of 31 March 2026, though in FY2024-25 its 45.31% controlling shareholder was classified as an associate. - No adverse regulator actions against the company itself
Minor- The FY2025-26 Corporate Governance report states no penalties or strictures were imposed by Stock Exchanges, SEBI or any statutory authority in the last three years. RBI approved the change in control vide letter dated 26 September 2024. The only regulator action in the record is a 2021 RBI compounding order against promoter BCCL for ₹25, and NSE and BSE requests for clarification on the preferential issue were administrative in nature. - Contingent liabilities have shrunk from ₹34.28 lakhs to nil
Clean- Claims not acknowledged as debts stood at nil in FY2025-26, down from ₹1.50 lakhs in FY2024-25 and ₹34.28 lakhs in FY2020-21. The ₹1.44 crore income tax demand for AY 1993-94 was resolved under the Vivad se Vishwas Scheme, with a refund of ₹1,10,84,481 determined in FY2021-22 and received in FY2023-24 after adjusting ₹6,48,142 against old demands. - Statutory auditor rotation followed the statutory schedule
Clean- V.B. Goel & Co. served a second term ending at the 30th AGM, and the Board appointed Vinod Kumar Jain & Co. on 13 August 2020 for five financial years, approved by members on 24 September 2020. The Board approved V.B. Goel & Co.'s reappointment on 21 May 2025, and members approved it at the AGM held 12 September 2025. The record shows no resignations, casual vacancies, or regulatory actions against either auditor.
What to watch
- Shareholder vote on borrowings. The TIML and NBA borrowing resolutions go to vote at the AGM convened pursuant to the notice dated 25 August 2026.
- Drawdown of approved facilities. Watch whether actual borrowings from TIML and NBA during FY2026-27 approach the approved ₹25 crore limits.
- FY2026-27 AOC-2 disclosure. The next annual report will show whether the TIML and NBA borrowings are reported as material related-party transactions at arm's length.
- FY2026-27 cash flow. Annual results due by May 2027 will show whether operating cash flow remains negative and whether loans given stay elevated.
Bottom line: This is an audited record with a clean opinion streak and a litigation book cleared to nil. The risk sits in the gap between the company's disclosed position and its proposed actions: borrowings from promoter entities nearly ten times turnover, a cash-negative core funded by loan recycling and other income, and a board transition that concentrated control with related parties. Read the FY2026-27 annual report for whether the borrowings are drawn, how they are disclosed, and whether operations start generating cash.