VEDA's forensic scores are quantitative screening outputs — not investment advice and not a determination of fraud. Read the full disclaimer · Glossary
Risk Grade
HIGH
Revenue FY23
₹371.00 Cr
Net Income
₹25.04 Cr
EBITDA
₹82.46 Cr
Op. Cash Flow
₹99.66 Cr
Market Cap
₹3,355.54 Cr
Higher number = lower risk
Multi-model forensic assessment by Veda Analytics Engine
Our forensic analysis identifies material indicators of financial distress and potential earnings manipulation at Gensol Engineering Ltd. Immediate elevated scrutiny is warranted.
The Altman Z-Score stands at 2.17, within the Grey Zone (1.81–2.99). While not indicative of imminent distress, this ambiguous positioning — particularly when calibrated for emerging market dynamics — necessitates close monitoring of liquidity and debt-service metrics over the next two to four quarters.
The Beneish M-Score (Beneish, 1999) of -0.65 exceeds the −2.22 manipulation threshold — a statistically significant indicator that earnings may be subject to aggressive accounting practices. Our forensic team notes that companies breaching this threshold in Indian markets have, in multiple documented cases (SEBI enforcement actions 2019–2025), subsequently disclosed restatements or faced regulatory scrutiny.
The Piotroski F-Score of 4/9 indicates average financial health. While not alarming, the score suggests pockets of weakness across the nine signals that merit monitoring — particularly around leverage dynamics and margin sustainability.
Dechow RSST analysis indicates a low fraud probability of 0.40%, well within acceptable parameters. Accrual quality appears sound.
Negative operating cash flow is a significant concern. When a company reports positive net income but negative OCF, it signals that reported earnings may not be backed by actual cash generation — a classic indicator of accrual-based earnings inflation that our forensic methodology specifically targets.
Our operational red flag detection system has triggered 2 high-severity alerts: Days Sales Outstanding Spike; Negative Operating Cash Flow Despite Profits. Each flag is calibrated against Indian market benchmarks and historical fraud patterns from our proprietary database of 3,000+ SEBI, SFIO, and MCA enforcement cases.
The composite forensic risk score of 22/100 (CRITICAL) is the weighted average of each model's 0–100 safety value: Altman Z (33%), Beneish M (28%), Piotroski F (17%), Dechow F (11%), DuPont (5%), Montier C (5%). Weights are re-scaled over the models that ran, and penalty multipliers apply when Beneish flags manipulation or Altman Z is in the distress zone.
Monitoring Recommendations
This analysis applies six forensic accounting models — Altman Z-Score (1968/1993), Beneish M-Score (1999), Piotroski F-Score (2000), Dechow RSST F-Score (2011), Montier C-Score (2008) and DuPont decomposition — calibrated for Indian capital market conditions. Governance is not part of the composite. Findings are indicative and should be corroborated with primary source documents.
