Om Galaxy Limited’s bank stock statements diverged by 31.02%

Om Galaxy Limited disclosed quarterly differences between stock statements submitted to banks and its unaudited books, reaching 31.02% for trade receivables in FY 2024-25 Q3 and 29.16% for inventory in FY 2024-25 Q4. The FY 2025-26 auditor’s report nevertheless recorded no year-end discrepancy in net working capital.

Why did Om Galaxy’s bank stock statements differ from its books by up to 31.02%?

Om Galaxy said the differences resulted from provisional reporting, outstanding-period limits for receivables, inventory capitalisation and treatment of creditor advances. The company had aggregate working-capital limits exceeding Rs 5 crore at points during the relevant years, secured by current assets, and submitted quarterly bank stock statements covering inventory, trade receivables and trade payables.

The largest percentage difference was FY 2024-25 Q3 trade receivables, where the unaudited books showed Rs 24.06 crore and the bank statement showed Rs 18.36 crore. The Rs 5.70 crore gap equalled negative 31.02% of the bank-statement amount. Om Galaxy attributed the FY 2024-25 receivables differences, except Q2, to reporting based on a specified outstanding-period limit.

Inventory produced the largest rupee difference in the disclosed reconciliation. In FY 2024-25 Q4, inventory was Rs 30.00 crore in the books and Rs 42.35 crore in the stock statement, leaving a Rs 12.35 crore or 29.16% difference. Om Galaxy said the stock statement used provisional figures and cited Rs 8.08 crore of inventory capitalised to fixed assets during the year as the major reason.

How did Om Galaxy’s quarterly differences change across the reported years?

Om Galaxy’s reconciliation shows that the largest differences shifted between inventory and receivables over the reported periods. A stock statement is the information submitted to a bank for working-capital facilities, while the annexure compares that submission with unaudited books for the same quarter.

In the first quarterly reconciliation set, inventory matched the books in Q1, Q2 and Q3, before the Q4 stock statement exceeded book inventory by Rs 3.15 crore, or 11.81%. Trade receivables differed most in Q1, when books showed Rs 20.39 crore and the bank statement showed Rs 24.31 crore, a Rs 3.92 crore or 16.13% difference linked to tax deducted at source reconciliation.

FY 2024-25 contained both the largest receivables percentage gap and the largest inventory gap until FY 2025-26 Q2. Trade-payables differences in FY 2024-25 ranged from negative 0.68% to negative 4.98%, whereas FY 2025-26 recorded positive differences of 9.42% in Q3 and 14.75% in Q4. Om Galaxy said the Q3 FY 2025-26 payable difference reflected creditor advances not being netted off.

What did the FY 2025-26 CARO remark say about Om Galaxy’s statements?

The statutory auditor said stock statements submitted during FY 2025-26 were not in agreement with Om Galaxy’s books of account. The comment appeared in the annexure under CARO 2020, the Companies (Auditor’s Report) Order, and concerned information submitted to banks during the year.

The same remark said there were no discrepancies at the FY 2025-26 year-end in net working capital between the bank stock statement and the books. Om Galaxy defines working capital as current assets minus current liabilities in its ratio methodology. The company said the in-year differences concerned provisional data, did not indicate a material misstatement or physical-inventory shortage, had no quantifiable financial impact and required no adjustment to restated financial information.

The year-end statement does not mean every quarterly category matched. In FY 2025-26 Q2, inventory was Rs 38.79 crore in the books and Rs 54.30 crore in the bank statement, a Rs 15.51 crore difference. In Q4, inventory exceeded books by Rs 6.20 crore, while trade receivables were Rs 73.33 lakh lower and trade payables were Rs 4.14 crore higher in the bank statement.

Which categories accounted for the biggest Om Galaxy differences?

Inventory and trade receivables accounted for the largest disclosed percentage and rupee differences, while trade payables were usually closer to book values until FY 2025-26 Q4. Inventory and receivables are current assets in the working-capital calculation, while trade payables are current liabilities and reduce net working capital.

The FY 2025-26 Q4 figures show how differences can offset in a combined position. Inventory was Rs 6.20 crore higher in the bank statement than in the books, but receivables were Rs 73.33 lakh lower and payables were Rs 4.14 crore higher. Om Galaxy stated that stock, debtors and creditors together were within 10% in that quarter.

The reported operating ratios show a changing working-capital profile across FY 2023-24 to FY 2025-26. Inventory turnover, calculated as cost of goods sold divided by average inventory, declined from 1.77 to 1.44 and then 1.08. Trade-receivables turnover, calculated as revenue from operations net of returns divided by average trade receivables, moved from 3.12 to 2.70 before rising to 3.45.

What must hold for the year-end reconciliation to continue?

The disclosed year-end outcome depends on the combined reconciliation of inventory, receivables and payables rather than identical quarterly figures for every line item. It also depends on provisional stock statements being reconciled to books by the reporting date and on consistent treatment of inventory transferred to fixed assets, tax deducted at source, receivable-age limits and creditor advances.

Om Galaxy reported total debt of Rs 37.79 crore and shareholders’ funds of Rs 79.82 crore at 31 March 2026. Its current ratio, defined as current assets divided by current liabilities, was 1.20 at that date, compared with 1.43 at 31 March 2025. Those measures make the classification and reconciliation of current assets and current liabilities relevant to the bank submissions.

Conclusion

Om Galaxy’s disclosures show category-level differences between quarterly bank stock statements and unaudited books, led by the negative 31.02% gap in FY 2024-25 Q3 receivables and the 29.16% difference in FY 2024-25 Q4 inventory. The auditor confirmed that FY 2025-26 in-year statements did not agree with the books, while also recording no discrepancy in year-end net working capital.

The next disclosure to watch is whether subsequent quarterly submissions continue to reconcile to the year-end combined working-capital position. Om Galaxy’s stated explanations make that outcome dependent on completing reconciliations of provisional figures and on the treatment of receivables subject to outstanding-period limits, inventory capitalisation and creditor-advance net-offs.