Grand Foundry’s record is one of structural erosion: revenue collapsed to near-zero, the company has been suspended from trading and escalated to GSM Stage IV, and three statutory auditors in a single year have been accompanied by repeated board clear-outs and a pattern of regulatory non-compliance that its own governance reports denied.
Key findings
- Three statutory auditors in a single year
Major- M/s Ashwani & Associates, appointed for a five-year term at the 31st AGM on 29 September 2023, resigned on 6 January 2026 citing pre-occupation. M/s ANSK & Associates were appointed on 10 February 2026 to fill the vacancy but declined to continue after the ensuing AGM, and shareholders approved M/s Agarwal & Saxena as the third auditor on 30 June 2026. - Recurring SEBI and exchange non-compliances, while governance reports claimed a clean record
Major- The company’s shares were suspended from trading from 1 April 2019 to 12 July 2019, and later escalated to GSM Stage IV, where they remained restricted as of FY2024-25. SEBI imposed an adjudication penalty on 25 January 2024 for SAST violations spanning three financial years, and BSE and NSE levied fines of ₹11,800 and ₹5,900 respectively in FY2023-24. Despite these actions, the FY2024-25 Corporate Governance report stated the company had complied with all capital-market requirements over the last three years. - CARO confirms loans to related parties were 100% of total loans in FY2023
Major- The CARO report for FY2023 states that loans made to related parties were 100% of total loans made during that financial year. Loans and advances given to KM Properties Limited, a related party until 15 June 2023, totalled ₹51.34 lakhs in FY2023. - Financial statements were repeatedly regrouped, and going concern rests on unsold inventory
Minor- The company disclosed in each annual report from FY2020 through FY2025 that it regrouped and rearranged financial statement items wherever necessary. As of 31 March 2026, accumulated losses stood at ₹5.45 crore, and management states the going-concern assumption depends on generating sufficient future profits from the sale of unsold inventory and existing major contracts. - An unquantified PF/ESIC liability persists, and the auditor flagged material uncertainty on going concern
Minor- The company has not obtained registration under the PF and ESIC Act, and the liability remains undetermined as disclosed in FY2022-23, FY2023-24, and FY2024-25. The auditor’s report for FY2024-25 included a Material Uncertainty Related to Going Concern paragraph, noting accumulated losses of ₹18.99 crore exceeded net worth, though the opinion was not modified.
What to watch
- PF/ESIC liability. The unquantified liability for non-registration remained undetermined as of 31 March 2025.
- Going-concern recovery. Whether the company generates sufficient profits from unsold inventory and major contracts to support the going-concern assumption, as stated in the FY2025-26 Annual Report.
Bottom line: This is a record of a company that has shed its original business, accumulated a trail of regulatory actions while its own filings denied them, and saw three statutory auditors in a single year. The going-concern assumption now rests on unsold inventory and contracts whose substance is not disclosed, and the open offer by SAR Televenture will determine who controls whatever remains. Watch the completion of that offer and whether the GSM restriction is lifted.