Varmora Granito’s Bank Returns Repeatedly Differed From Books

Varmora Granito Limited’s quarterly current-asset statements filed with banks differed from its books in each of the 12 disclosed quarters from FY 2023-24 through FY 2025-26. The largest difference was Rs 73.556 crore in March 2024, when the bank statement showed Rs 558.775 crore and the books showed Rs 485.219 crore.

Why did Varmora Granito’s bank returns differ from its books?

Varmora Granito attributes the differences to unrated receivables, changes in inventory valuation arising from overhead allocation, and other adjustments after quarterly statements were submitted. The company also says the quarterly statements were filed with banks according to the submission timing in the relevant sanction letters. The disclosure does not quantify the amount attributable to each of those three causes in any quarter.

The statements matter because Varmora Granito’s working-capital facilities are borrowings against current assets. HDFC Bank’s disclosed security includes a first pari passu charge, meaning an equal-ranking shared charge, over present and future current assets and movable fixed assets. State Bank of India, referred to as SBI Bank, discloses a first pari passu charge over the company’s entire current assets with HDFC Bank and ICICI Bank.

The source does not state that any of the 12 differences caused a breach, dispute with a bank or change in sanctioned limits. It does show that the bank-filed figure and book figure were not identical in every disclosed quarter. The stated explanation depends on differences in receivable assessment, inventory overhead allocation and adjustments made after a statement’s submission.

How large were Varmora Granito’s quarterly bank-return differences?

Varmora Granito’s largest absolute quarterly difference was Rs 73.556 crore in March 2024, with the bank statement above the books. The second-largest was Rs 71.103 crore in December 2023, but the direction was reversed because the books exceeded the bank statement. The table shows bank less books, so a negative figure means the books were higher.

Bank statements exceeded the books in nine of the 12 quarters. They were higher in all three quarters through December in FY 2025-26, before the March FY 2025-26 books figure exceeded the bank filing by Rs 4.060 crore. The books were also higher in December FY 2024-25 and December FY 2023-24.

What changed across the three financial years?

The aggregate of absolute quarterly differences declined to Rs 16.551 crore in FY 2025-26 from Rs 61.569 crore in FY 2024-25 and Rs 164.424 crore in FY 2023-24. These totals add four quarterly differences within each year and are not current-asset balances at a single reporting date. The FY 2025-26 total was less than one-tenth of the FY 2023-24 total.

March figures illustrate both the decline and the change in direction. Varmora Granito’s books showed Rs 485.219 crore at March 2024, Rs 668.164 crore at March 2025 and Rs 620.111 crore at March 2026. The corresponding bank-statement figures were Rs 558.775 crore, Rs 669.511 crore and Rs 616.051 crore, changing from bank higher by Rs 73.556 crore in March 2024 to bank higher by Rs 1.347 crore in March 2025 and books higher by Rs 4.060 crore in March 2026.

The disclosure does not provide a quarter-by-quarter reconciliation of unrated receivables, inventory-overhead valuation or post-submission adjustments. Therefore, the lower FY 2025-26 aggregate establishes smaller reported differences, but does not establish which stated driver declined. It also does not identify the date of each adjustment after a quarterly filing.

How are Varmora Granito’s current assets linked to its borrowings?

Varmora Granito reported Rs 136.976 crore of cash credit and working-capital demand loans from banks at 31 March 2026, compared with Rs 221.447 crore at 31 March 2025 and Rs 112.385 crore at 31 March 2024. Cash credit is a borrowing facility available up to a sanctioned limit, while a working-capital demand loan is repayable on demand under its terms. The current-asset statements are relevant because those facilities are secured against current assets.

Total current borrowings were Rs 186.584 crore at 31 March 2026, compared with Rs 283.884 crore at 31 March 2025 and Rs 150.533 crore at 31 March 2024. The March 2026 figure includes Rs 48.698 crore of current maturities of non-current loans and Rs 0.912 crore of interest accrued but not due, in addition to cash credit and working-capital demand loans. The source does not state that the fall in working-capital borrowings from March 2025 to March 2026 resulted from the smaller FY 2025-26 quarterly differences.

The disclosed collateral package extends beyond current assets. HDFC Bank’s security includes factory land and buildings, plant and machinery, a windmill turbine and equipment, personal guarantees and a corporate guarantee from Jaystar Industries. SBI Bank’s security includes stocks, book debts and other current assets alongside mortgage, equipment and machinery security, while ICICI Bank discloses a charge over current assets including book debts and receivables, specified land and buildings, and financed movable assets.

Conclusion

Varmora Granito reported non-matching book and bank-statement values in all 12 disclosed quarters between FY 2023-24 and FY 2025-26. The biggest discrepancies occurred in December 2023 and March 2024, when absolute differences exceeded Rs 70 crore, while the aggregate of four absolute quarterly differences fell to Rs 16.551 crore in FY 2025-26.

The next relevant disclosure is whether Varmora Granito provides a quantified reconciliation of unrated receivables, inventory overhead allocation and adjustments made after bank-statement submission. Readers can also assess subsequent current-asset statements alongside the Rs 136.976 crore cash credit and working-capital demand-loan balance reported at 31 March 2026 and the continuing security terms disclosed for HDFC Bank, SBI Bank and ICICI Bank facilities.