Sanchay Finvest auditor flags unpaid dividends and NSE penalties
The auditor issued a qualified report for FY26, citing missed preference share redemptions and a ₹47.88 lakh penalty from the NSE.
— 2 earlier stories on Sanchay Finvest Ltd. →What's new
- Auditor issued a qualified report for FY26 due to governance and compliance failures.
- Company failed to redeem preference shares or pay dividends due in October 2024.
- NSE demanded ₹47.88 lakh in penalties for historical non-compliance.
Why this matters
A qualified audit report is a red flag for any company, but it is particularly concerning for a ₹47 crore nano-cap. The lack of basic reconciliation systems for deposits and receivables suggests deep-seated operational dysfunction. Investors should view these governance failures as a primary risk.
What we're watching
- Whether the company settles the NSE penalty or contests the demand.
- Any update on the redemption of the overdue preference shares.
- The quality of internal controls under the newly appointed internal auditor.
The full read
Sanchay Finvest ended FY26 with a net loss and a qualified audit report that exposes significant governance failures. The auditor flagged that the company failed to redeem 12% redeemable non-cumulative preference shares that matured in October 2024, nor did it pay the required dividends. Beyond the missed payments, the company faces a ₹47.88 lakh penalty demand from the National Stock Exchange for past non-compliances. The audit also revealed that the company lacks a functional system to reconcile deposits, advances, and receivables. These disclosures paint a picture of a firm struggling with basic operational and regulatory requirements. With a market capitalization of only ₹47 crore, the company's inability to manage its obligations or its internal controls creates a high-risk profile for shareholders. The board has since replaced its secretarial auditor and appointed a new internal auditor, but the fundamental issues regarding compliance and financial oversight remain unresolved. It is a mess. The open question is how the company intends to clear its outstanding liabilities while under regulatory scrutiny.
Questions answered
- Why did the auditor issue a qualified report?
- The auditor flagged the company for failing to redeem 12% redeemable non-cumulative preference shares that matured in October 2024. The company also failed to pay the associated dividends.
- What is the status of the penalty from the NSE?
- The National Stock Exchange has demanded ₹47.88 lakh from Sanchay Finvest for historical non-compliances. The company has not yet indicated how it plans to address this demand.
- What internal control issues did the audit reveal?
- The audit found that the company lacks a proper system to reconcile deposits, advances, and receivables. This indicates a material weakness in the firm's financial reporting processes.
- Have there been any changes to the audit team?
- Yes. The board accepted the resignation of secretarial auditor Ramesh Chandra Mishra and appointed M/s SKBJ P & Co as the new internal auditor for FY26-27.
Story so far
All notes on SANCF →- 29 May 2026 · 12:49 PM IST Sanchay Finvest auditor flags unpaid dividends and NSE penalties
- 1d ago Sanchay Finvest auditor flags missed payments and internal control gaps
- 1d ago Sanchay Finvest auditor flags unpaid dividends and NSE penalties