Gujarat Fluorochemicals Limited
Preview the depth — unlock the full forensic study.
You're reading the free Overview. The full Landscape study, the Lenses, governance and quality scans unlock with Pro — across 5,000 Indian companies.
Briefing
Gujarat Fluorochemicals Limited — the brief
Forensic posture: Multiple flags. The auditor's opinion is clean, but the company has structured six material related-party transactions worth ₹1,077 Cr (asset purchases, guarantees, and subsidiary funding) that warrant scrutiny; contingent liabilities of ₹1,213 Cr (16.8% of net worth) are mostly routine tax disputes, and the academic engines show the company is out of immediate distress but with uneven operational momentum.
Auditor’s report (CARO 2020)
Auditor’s assessment Clean. Auditor: Patankar & Associates. Opinion: Unqualified. Fiscal year FY24-25.
Related-party transactions
Assessment Notable. Disclosed volume of ₹720 Cr across 41 related parties. Fiscal year FY24-25.
- Promoter KMPs subscribed GFCL EV subsidiary warrants: Mr. Vivek Kumar Jain, Mrs. Nandita Jain, and Mr. Devansh Jain (KMP and relatives) collectively subscribed ₹50 Cr of convertible warrants in GFCL EV Products Limited (a listed subsidiary), raising governance conflict-of-interest questions.
- Material guarantees for promoter-group wind energy entities: The Group has outstanding corporate guarantees of ₹421.57 Cr for Inox Renewable Solutions Limited (down significantly from ₹1,573.12 Cr in FY24); these entities are classified as 'other related parties' controlled by the promoter group, not
- Large trade receivable from deconsolidated IGREL Mahidad: A trade/other receivable of ₹192.03 Cr is outstanding from IGREL Mahidad Limited, which ceased to be a subsidiary in February 2025 after external equity dilution; recoverability risk is elevated given the entity is no longer controlled by G
Contingent liabilities
Assessment Notable. Total disclosed: ₹1,213 Cr (16.8% of net worth). Fiscal year FY24-25.
- Penalty u/s 271AA(1) AY 2018-19 failure to maintain international transaction documents; remanded to AO by High Court
- Customs duty – duty and equal penalty on pre-import condition violation for advance licence raw materials; Supreme Court judgement entitles Company to credit of ₹30.47 Cr, appeal at CESTAT
- Corporate guarantees/securities given to banks for fund-based and non-fund-based facilities of other related parties (vs ₹1,573.12 Cr prior year – significant 73% reduction)
Corporate governance
Board of 10 directors, 50% independent. Chair: Mr. Devendra Kumar Jain. Chair and CEO roles are separated. Statutory auditor: M/s Patankar & Associates. Board remuneration: 4.9% of net profit. Fiscal year FY24-25.
“Issue of convertible warrants by a subsidiary Mr. Vivek Kumar Jain 15.00 Mr. Devansh Jain 20.00 Mrs. Nandita Jain 15.00 Total 50.00”
What retail misses·The company transferred its entire 57 MW captive wind power plant to a subsidiary for ₹200 Cr in January 2025, then immediately reduced its stake in that subsidiary to 26.25% (ceasing consolidation) — a transaction structure that is fully disclosed in related-party notes but would be invisible to anyone reading earnings headlines or news summaries.
Strengths noted in disclosures: Auditor issued unqualified opinion with zero high or material flags in the audit report — disclosures are accurate and complete. · Altman Z-score of 8.13 places the company in the Safe zone with low bankruptcy risk, anchored on solid profitability and leverage ratios. · Earnings quality composite score of 78/100 (Good) with low manipulation risk and cash flow matching reported profit — core financials are genuine.
Forensic signal
From the company's own filingsStrong: 52-Week · Size · Weak: Valuation · Yield