Garodia Chemicals' September cash disclosures differ by Rs 12.75 lakh

Garodia Chemicals Limited reported two different cash and cash-equivalent figures for September 30, 2026: negative Rs 9.58 lakh in its cash-flow statement and Rs 3.17 lakh in its balance sheet. The Rs 12.75 lakh difference equals the company’s reported loss before tax and operating cash outflow for the half year.

Why do Garodia Chemicals' September cash disclosures differ?

Garodia Chemicals’ filing presents unreconciled closing cash figures for the same September 30, 2026 reporting date. The unaudited balance sheet shows cash and cash equivalents of Rs 3.17 lakh, unchanged from Rs 3.17 lakh at March 30, 2026. The cash-flow statement instead shows closing cash and cash equivalents of negative Rs 9.58 lakh after a reported net decrease of Rs 12.75 lakh.

The disclosed gap is Rs 12.75 lakh, calculated by comparing the Rs 3.17 lakh balance-sheet figure with negative Rs 9.58 lakh in the cash-flow statement. Both statements were included in the unaudited results approved by the board on November 6, 2026. The filing contains no note that reconciles the two September 30 figures, identifies one as erroneous, or reports a restatement.

The comparative-date labels also differ within the filing. The balance sheet uses March 30, 2026, while the cash-flow statement uses the year ended March 31, 2026. That one-day label difference does not resolve the Rs 12.75 lakh difference between two figures both presented for September 30, 2026.

Does Garodia Chemicals' cash-flow statement calculate to negative cash?

Yes, Garodia Chemicals’ cash-flow arithmetic produces negative Rs 9.58 lakh of closing cash. The statement starts with Rs 3.17 lakh of cash and cash equivalents and reports a net decrease of Rs 12.75 lakh for the period ended September 30, 2026. Subtracting the outflow from the opening balance gives negative Rs 9.58 lakh.

The entire reported decrease came from operating activities. Garodia Chemicals recorded a Rs 12.75 lakh loss before tax for the half year and reported no working-capital adjustments or direct taxes paid in the cash-flow statement. Consequently, cash generated from or used in operations was also negative Rs 12.75 lakh.

The financing section shows no amount for either equity-share proceeds or net long-term borrowing proceeds for the period ended September 30, 2026. This differs from the year ended March 31, 2026, when the filing reported Rs 50.00 lakh of equity-share proceeds, negative Rs 450.13 lakh of net long-term borrowing proceeds, and negative Rs 400.13 lakh of financing cash flow.

What changed in Garodia Chemicals' results and balance sheet?

Garodia Chemicals reported a Rs 12.75 lakh loss for the half year ended September 30, 2026, compared with a Rs 396.68 lakh profit in the corresponding half of 2025. The current-period statement records no revenue from operations and no other income, whereas the prior-year half included Rs 405.88 lakh of other income. Total expenses increased to Rs 12.75 lakh from Rs 9.20 lakh.

The September 2026 quarter recorded a Rs 2.36 lakh loss, compared with a Rs 10.39 lakh loss in the June 2026 quarter and a Rs 402.49 lakh profit in the September 2025 quarter. Employee-benefit expense was Rs 0.75 lakh in each of those three quarters, while other expenses fell to Rs 1.61 lakh in September 2026 from Rs 9.64 lakh in June 2026.

On the balance sheet, total assets were Rs 9.39 lakh at both September 30, 2026 and March 30, 2026. Non-current borrowings increased to Rs 47.87 lakh from Rs 31.74 lakh, a Rs 16.13 lakh movement, while trade payables declined to Rs 1.66 lakh from Rs 5.00 lakh. The filing does not explain how the higher borrowing balance relates to the blank current-period financing-cash-flow lines.

Other equity moved to negative Rs 93.42 lakh at September 30 from negative Rs 80.68 lakh at March 30, while share capital remained Rs 52.63 lakh. The Rs 12.74 lakh movement in other equity is close to the Rs 12.75 lakh reported half-year loss, subject to the rounding in lakh units. Garodia Chemicals also states that it has one business segment, so no segment-level disclosure is provided.

What did Garodia Chemicals' independent reviewer report?

Garodia Chemicals’ independent reviewer, Laxmikant Kabra & Co LLP, stated on November 6, 2026 that nothing had come to its attention to indicate that the unaudited statement was not prepared under Indian Accounting Standard 34, Interim Financial Reporting, or contained a material misstatement. This is a review conclusion rather than an audit opinion.

The reviewer included an emphasis of matter that balances of debtors, creditors, loans or advances given, and loans or advances received are subject to confirmation and reconciliation. That wording does not specifically mention the Rs 3.17 lakh balance-sheet cash figure, the negative Rs 9.58 lakh cash-flow figure, or the Rs 12.75 lakh difference.

The review report says such work provides moderate assurance and is substantially less extensive than an audit. Separately, the results note says the statutory auditor expressed an unmodified opinion, but the accompanying report describes itself as an independent auditor’s review report for the quarter and half year ended September 30, 2026.

Conclusion

Garodia Chemicals’ September 30, 2026 filing contains a direct inconsistency in its cash disclosures: the cash-flow statement arrives at negative Rs 9.58 lakh after a Rs 12.75 lakh operating outflow, while the balance sheet reports Rs 3.17 lakh of cash and cash equivalents. The first-half loss, no reported revenue or other income, and higher non-current borrowings provide context but do not reconcile the two figures.

What to watch next is whether Garodia Chemicals addresses the unresolved Rs 12.75 lakh difference in a correction, clarification or later financial filing. The November 6, 2026 announcement discloses neither a planned reconciliation nor a revised statement, despite borrowings rising by Rs 16.13 lakh to Rs 47.87 lakh at September 30.