Dudani Retail’s Restated Summary Conflicts With Detailed Notes

Dudani Retail Limited’s restated FY26 balance-sheet summary conflicts with detailed restated notes on inventory, trade receivables, short-term borrowings and trade payables. The largest difference is inventory: Annexure I reports Rs 24.62 lakh at 31 March 2026, while Note 11 reports Rs 12.10 crore for the same date.

Why do Dudani Retail’s restated summary and detailed asset notes conflict?

Dudani Retail’s Annexure I summary reports inventory of Rs 24.62 lakh at 31 March 2026, Rs 22.26 lakh at 31 March 2025 and Rs 14.86 lakh at 31 March 2024. The same summary reports nil trade receivables for each of those three dates. Annexure I identifies Note 11 for inventories and Note 12 for trade receivables, making the detailed schedules part of the same restated financial information.

Note 11 instead reports inventory of Rs 12.10 crore at 31 March 2026, Rs 10.52 crore at 31 March 2025 and Rs 6.98 crore at 31 March 2024. Note 12 reports trade receivables of Rs 3.74 crore, Rs 2.67 crore and Rs 2.52 crore, respectively, rather than nil. The FY26 inventory gap between Annexure I and Note 11 is Rs 11.85 crore, while the FY26 receivables difference is Rs 3.74 crore.

The difference is not explained by the source as a rounding issue because the respective balances differ by crores of rupees. Note 11 divides FY26 inventory into raw materials of Rs 1.42 crore, finished goods of Rs 10.53 crore and stores and spares of Rs 14.50 lakh. The inventory note also says management physically verified inventory at the end of each respective year.

How do the detailed notes compare with Dudani Retail’s cash flow?

Dudani Retail’s detailed asset notes correspond closely with the working-capital movements in its restated cash-flow statement. For FY26, the cash-flow statement records an increase in inventory of Rs 1.58 crore and an increase in trade receivables of Rs 1.08 crore. Note 11 shows inventory increasing from Rs 10.52 crore at 31 March 2025 to Rs 12.10 crore at 31 March 2026, while Note 12 shows receivables rising from Rs 2.67 crore to Rs 3.74 crore.

The FY25 disclosures show a similar relationship. Detailed inventory increased from Rs 6.98 crore at 31 March 2024 to Rs 10.52 crore at 31 March 2025, a rise of Rs 3.54 crore, compared with the cash-flow statement’s Rs 3.54 crore inventory increase. Detailed receivables rose by Rs 14.17 lakh in FY25, from Rs 2.52 crore to Rs 2.67 crore, close to the cash-flow statement’s Rs 14.16 lakh receivables increase.

The detailed FY26 balance also identifies the composition of the working-capital amounts absent from the summary. Finished goods represented Rs 10.53 crore of the Rs 12.10 crore inventory reported in Note 11, or about 87% of that total. Note 12 classifies Rs 3.73 crore of FY26 receivables as outstanding for less than six months, with Rs 1.60 lakh older than six months and no disclosed provision for doubtful debts.

These relationships do not establish why Annexure I contains different figures, because the supplied pages provide no reconciliation between the summary and the detailed notes. They do show that the larger detailed inventory and receivable amounts are reflected in the FY25 and FY26 cash-flow working-capital movements. Continued conversion of inventory and collection of receivables would be relevant to those detailed balances, but no forward collection or inventory plan is disclosed in the supplied material.

What conflicts appear in Dudani Retail’s borrowings and payables?

Dudani Retail’s FY26 liability figures also differ between Annexure I and the accompanying notes. Annexure I reports short-term borrowings of Rs 84.79 lakh and trade payables of Rs 4.29 crore at 31 March 2026. Note 2(b), headed Restated Standalone Statement of Short Term Borrowings, reports total short-term borrowings of Rs 4.29 crore for that date.

Note 2(b) divides the Rs 4.29 crore total into Rs 4.17 crore of bank loans repayable on demand and Rs 12.05 lakh of current maturities of long-term debt. Note 6, headed Restated Standalone Statement of Trade Payables, instead reports trade payables of Rs 79.90 lakh, including Rs 30.03 lakh due to micro and small enterprises and Rs 49.87 lakh due to other enterprises. The components in Note 6 total Rs 79.90 lakh.

The source does not state that Annexure I intentionally reclassified the borrowing and payable figures. Its presentation instead assigns the Rs 4.29 crore amount to trade payables in the summary and to short-term borrowings in Note 2(b). The detailed notes therefore create a second set of material internal differences beyond inventories and trade receivables.

What do the bank-security disclosures say about the larger balances?

Dudani Retail’s disclosure on current-asset security to Kotak Mahindra Bank contains figures closer to the detailed schedules than to Annexure I. For FY26 fourth quarter, the table reports book trade receivables of Rs 3.74 crore and trade payables of Rs 7.99 crore. The same row prints inventory under book balances as Rs 1,21.03 lakh, while the reported inventory amount is Rs 12.08 crore; Note 11 separately reports closing inventory of Rs 12.10 crore.

Kotak Mahindra Bank had a cash-credit limit for working capital that was last renewed and enhanced on 25 January 2025, with a sanctioned amount of Rs 4.75 crore. Its disclosed outstanding balance was Rs 4.17 crore at 31 March 2026. The facility was secured by the company’s present and future current assets and by a Jaipur property owned by Sushila Dudani, with personal guarantees from Akshay Dudani, Charu Dudani and Sushila Dudani.

The prospectus says quarterly bank statements were based on unaudited interim financial information extracted from company books and were net of customer advances. It attributes variances between bank submissions and final books to provisional-book adjustments, including cut-offs, goods in transit, and overhead allocation to work in progress and finished goods. That explanation concerns differences between quarterly bank returns and final books; the supplied pages do not state that it explains the conflicting restated-summary and detailed-note balances.

What does the auditor’s report state about the restated information?

Dudani Retail’s auditor, Goyal & Company, stated on 10 September 2026 that it had examined the restated financial information for the years ended 31 March 2024, 2025 and 2026 for inclusion in the proposed small and medium enterprise initial public offering. The report says the information was compiled from audited financial statements and included retrospective adjustments for changes in accounting policies, material errors and regroupings or reclassifications, if any.

Goyal & Company said there were no reservations, qualifications, emphasis-of-matter paragraphs or adverse remarks in the audit reports for the three financial years that required adjustments to the restated financial statements. It also stated that the restated information was prepared in accordance with the Companies Act, 2013, the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, and the Institute of Chartered Accountants of India guidance note on reports in company prospectuses.

The auditor’s statements describe the stated examination scope and preparation basis, but the supplied report does not contain a correction or reconciliation for Annexure I against Notes 2, 6, 11 and 12. The report also says it does not reflect events after the dates of the underlying audited reports and that the auditor has no responsibility to update its report for later events and circumstances.

Conclusion

Dudani Retail’s restated financial information presents materially different FY24 through FY26 balances for core current assets and liabilities depending on whether a reader uses Annexure I or the detailed notes. The detailed inventory and receivables schedules broadly track the disclosed cash-flow movements, while the summary reports far smaller inventory and nil receivables; the borrowing and payable figures also appear assigned differently across the two presentations.

The next disclosure to watch is any prospectus revision, erratum or stated reconciliation of Annexure I with the detailed notes. The company discloses a mechanism for reconciling provisional bank returns with final books, but the supplied material leaves unresolved why the restated summary, prepared for the same reporting dates, differs from the detailed restated schedules.