Farm Peace reports Rs 31.3862 crore gap in lender figures

Farm Peace reported a Rs 31.3862 crore difference in March 2026 between trade receivables in its books and the figure submitted to HDFC Bank Limited for determining drawing power. The company disclosed recurring differences in quarterly lender statements covering both receivables and finished goods, which it attributed to provisional records and subsequent accounting adjustments.

Why did Farm Peace lender figures diverge from its books?

Farm Peace said its quarterly statements to HDFC Bank were prepared using provisional books and records before the accounts for the relevant periods had been finally closed. Farm Peace has working-capital facilities from HDFC Bank that are secured, among other things, against current assets, and it must periodically submit statements to determine drawing power, or the amount available under the facility based on eligible collateral.

Farm Peace said subsequent accounting entries, cut-off adjustments, stock reconciliations, corrections and quarter-end or year-end closing adjustments caused differences between lender submissions and final books. For trade receivables, Farm Peace also cited provision balances, buyer certifications against actual balances, rectification of accounting mismatches and record deviations. The company said some transactions are processed and recorded through outstanding entries at the time quarterly statements are prepared.

Farm Peace did not disclose that HDFC Bank reduced its borrowing limit or alleged a breach of financing terms. However, Farm Peace said that recurrence of the differences, or deficiencies in its financial-reporting and reconciliation processes, could result in recalculation of drawing power, breach of financing terms, tax or regulatory scrutiny, and reputational effects.

How large was Farm Peace's March 2026 receivables gap?

Farm Peace's largest disclosed trade-receivables difference was Rs 31.3862 crore in March 2026. Its books recorded sundry debtors, also called trade receivables, of Rs 59.9522 crore, while the quarterly statement submitted to HDFC Bank recorded Rs 28.5661 crore. The disclosed difference is the books balance less the lender-statement balance.

The March 2026 gap exceeded the other disclosed Fiscal 2026 receivables differences. In September 2025, Farm Peace recorded Rs 21.0597 crore in books and reported Rs 11.556 crore to HDFC Bank, a difference of Rs 9.5037 crore. In December 2025, the books balance was Rs 45.2444 crore and the lender statement recorded Rs 38.9773 crore, a Rs 6.2671 crore difference.

Farm Peace's March 2026 books balance was more than twice the receivables amount shown in the corresponding HDFC Bank statement. The difference also rose from Rs 3.116 crore in March 2025 to Rs 31.3862 crore a year later. Farm Peace did not provide a separate numerical allocation of the March 2026 movement among cut-off entries, provisions, buyer certifications or other stated causes.

Were Farm Peace's finished-goods figures also different?

Farm Peace reported finished-goods differences in 11 of the 12 quarters from June 2023 through March 2026, with December 2025 the only disclosed quarter showing no difference. The largest disclosed finished-goods variation was Rs 8.178 crore in September 2025, when final books showed Rs 42.70 lakh and the quarterly statement submitted to HDFC Bank showed Rs 8.605 crore.

The direction of finished-goods differences was not consistent across periods. In March 2026, Farm Peace's books recorded Rs 19.4585 crore of finished goods, against Rs 14.5461 crore in the HDFC Bank statement, creating a Rs 4.9124 crore difference. In March 2025, the lender statement was higher than books by Rs 1.4652 crore.

The table uses the difference convention disclosed by Farm Peace, under which a negative number means the lender-statement amount exceeded the books amount. Farm Peace said the inventory statements were prepared before books were finalized and that later accounting entries, reconciliations and closing adjustments changed the balances. The disclosures show that the mismatch involved both receivables and finished goods that may form part of the current assets securing working-capital facilities.

What controls has Farm Peace introduced for lender statements?

Farm Peace said it has reconciled the identified differences and strengthened its process for preparing and submitting stock statements. Its stated measures are reconciliation with underlying books and records, review by the finance function before submission, and periodic monitoring of differences to reduce the possibility of recurrence.

Farm Peace said it informed HDFC Bank of the differences and provided reconciliations along with a certificate from an independent Chartered Accountant. Farm Peace said the certificate confirms the nature and reasons for the differences and the remedial measures undertaken, and is available among the material contracts and documents for inspection. The disclosure does not state HDFC Bank's response, a revised drawing-power amount, a tolerance threshold or a testing period for the new process.

Farm Peace separately disclosed that it had not implemented an audit-trail feature in the past. An audit trail is a system record of changes to accounting records, including modifications, deletions and alterations of financial data. Farm Peace said the absence of that feature could limit tracking of changes and affect data integrity, auditability, internal controls and statutory compliance.

How does Farm Peace's seasonal model affect collateral reporting?

Farm Peace's processed-potato farming cycle creates concentrated procurement, storage and cash requirements, making current-asset reporting relevant to its secured working-capital facilities. In Gujarat, Farm Peace said plantation generally begins in October and November, while harvesting occurs between January and March. Sowing and harvesting require cash outflows for farmer payments, seed procurement, logistics and storage.

Revenue concentration shifted across the second half of the year but remained highest in the January-March quarter. January-March contributed 43.07% of Fiscal 2026 revenue from operations, compared with 62.41% in Fiscal 2025 and 78.37% in Fiscal 2024. October-December contributed 30.35% in Fiscal 2026, up from 21.71% in Fiscal 2025 and 13.61% in Fiscal 2024.

Farm Peace reported negative operating cash flow of Rs 7.1729 crore in Fiscal 2026, compared with negative Rs 17.5716 crore in Fiscal 2025 and negative Rs 1.542 crore in Fiscal 2024. Cash flow from financing activities was positive Rs 7.2479 crore in Fiscal 2026 and positive Rs 15.3045 crore in Fiscal 2025. These figures do not establish that the lender-statement differences changed available funding, but Farm Peace's disclosures identify drawing-power recalculation as a potential consequence if discrepancies recur.

Conclusion

Farm Peace disclosed recurring differences between provisional collateral statements submitted to HDFC Bank and later book balances, culminating in a Rs 31.3862 crore trade-receivables gap in March 2026. The variations changed in size and direction across receivables and finished goods, while Farm Peace attributed them to accounts not being finalized, later entries, cut-off adjustments, corrections and reconciliations.

The next point to watch is whether Farm Peace's stated reconciliation, finance-function review and periodic monitoring measures prevent differences in later lender statements. Farm Peace has said it provided HDFC Bank with reconciliations and an independent Chartered Accountant's certificate, but it did not disclose the bank's response, any revised drawing power or a timetable for implementing an accounting audit trail.