GE Vernova T&D India Ltd
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Briefing
GE Vernova T&D India Ltd — the brief
Forensic posture: Material flags. The auditor flagged a serious fraud incident (₹40.3 Cr refund fraudulently obtained by an external person) and audit-trail gaps in software systems, but the company's financials are otherwise clean; ₹4,874 Cr in contingent tax and litigation liabilities sit at an unknown fraction of net worth (not disclosed), and the earnings and academic engines show strong quality and low bankruptcy risk.
Auditor’s report (CARO 2020)
Auditor’s assessment Serious flags. Auditor: Deloitte Haskins & Sells. Opinion: Unqualified. Fiscal year FY24-25. 1 critical, 3 material, 1 minor flag.
- Audit trail feature not enabled: The company did not enable audit trail features for certain software systems in the prior year, making regulatory compliance reporting impossible for that period.
- Unable to comment on third-party software audit trail: The auditor cannot verify audit trail compliance for third-party employee database software due to lack of SOC report from the service provider.
- Delay in remittance of income tax dues: While most statutory dues are deposited regularly, the company has experienced delays in remitting income tax dues to authorities.
- Fraud by external person - refund obtained from tax authorities: An external unauthorized person fraudulently obtained a ₹40.3 million refund from tax authorities impersonating the company.
Related-party transactions
Assessment Notable. Disclosed volume of ₹7,851 Cr across 19 related parties. Fiscal year FY24-25.
- Substantial cash pool deposit with subsidiary entity: Company invested ₹25,968 Mn in inter-corporate deposit with LM Wind Power Blades (India) Pvt Ltd (subsidiary/step-down) on demand at interest rate 6.47-7.14% p.a., raising capital management concerns.
- Significant borrowing/repayment cycle with IHC: Company availed ₹9,841.9 Mn from GE India Industrial Pvt Ltd (IHC) and repaid ₹11,839.8 Mn during year, indicating active working capital management through related party; terms and security not explicitly detailed.
Contingent liabilities
Assessment Notable. Total disclosed: ₹4,874 Cr. Fiscal year FY24-25.
- Sales tax matters and Goods and service tax demands
- Custom, excise duty and service tax matters demands
“As audit trail feature was not enabled for the year ended March 31, 2024, reporting under Rule 11 (g) of the Companies (Audit and Auditors) Rules, 2014 on preservation of audit trail as per the statutory requirements for record retention is not applicable.”
What retail misses·The fraud flag — an unauthorized external person impersonating the company to claim a ₹40.3 Cr tax refund — appears in the auditor's detailed remarks but would not surface in earnings headlines or basic news coverage; it reveals a serious identity/control vulnerability that extends beyond the financials.
Strengths noted in disclosures: Earnings quality composite score of 87/100 with no manipulation risk detected; cash flow aligns with reported profit. · Altman Z-score of 17.5 places the company in the safe zone with low bankruptcy risk driven by profitability and asset productivity. · Piotroski score of 7/8 confirms strong fundamental financial position across nine quality dimensions.
Forensic signal
From the company's own filingsStrong: Size · Weak: Momentum · Valuation · Yield