Ran a systematic forensic accounting scan on Wardwizard Innovations & Mobility Ltd. (NSE: WARDWIZARD). The quantitative scores don’t cross every threshold — but the pattern of red flags is hard to ignore.

The most alarming finding: Days Sales Outstanding (DSO) exploded from ~25 days (FY2022) to ~188 days (FY2025) — a 7.6× increase — while revenue declined 5%. Trade receivables ballooned from ₹585L to ₹15,572L. Revenue falling + receivables doubling is a textbook revenue quality warning sign.

5 Red Flags at a glance:

🔴 #1 — DSO Explosion: Receivables up 26× in 3 years. Revenue down. Classic Check #1 trigger.

🔴 #2 — RPT Concentration: A single promoter-group entity (Wardwizard Solutions India Pvt Ltd) accounted for 49.6% of FY2023 revenue. Material RPTs with another promoter entity flagged at FY2024 AGM.

🔴 #3 — Negative CFO + Dividends: Cash flow from operations was negative all three years (−₹1,789L → −₹6,871L) yet the company declared dividends. That’s borrowed money paying shareholders.

🟡 #4 — Altman Z-Score in Distress Zone: Declined from 2.94 → 1.54. Below the 1.81 distress threshold in FY2025, driven by leverage (D/E: 1.85×) and falling liquidity (current ratio: 1.10).

🔴 #5 — Beneish M-Score Flags Manipulation (FY2024): M-Score of +0.66 (threshold: −1.78). Driven by a DSRI of 3.10 — receivables growing 3× faster than sales.

The Dechow F-Score stays below the fraud threshold, and this is not a fraud allegation. But when DSO explosion, RPT concentration, negative CFO, and both forensic scoring models fire simultaneously — that’s a multi-dimensional risk cluster demanding rigorous due diligence.

📊 Swipe through for the full breakdown with charts and data.

This is for educational/informational purposes only. Not investment advice. Always do your own research.

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