Kati Patang Lifestyle Limited review flags balances and dues

Kati Patang Lifestyle Limited’s consolidated limited review for the half year ended 30 September 2026 identified receivable and payable balances subject to confirmation and certain outstanding statutory dues, while incorporating unaudited subsidiary information with total assets of Rs 52.6855 crore. The auditor issued its report on 14 November 2026.

What did Kati Patang’s auditor identify in the September 2026 review?

Kati Patang’s auditor identified receivable and payable balances that remained subject to balance confirmations, as well as certain statutory dues outstanding at 30 September 2026. Rajesh Raj Gupta & Associates LLP disclosed these matters in an emphasis-of-matter paragraph within its consolidated limited-review report dated 14 November 2026.

The report did not quantify the balances awaiting confirmation, name the counterparties involved, or state the amount, category or due date of the outstanding statutory dues. Except for these matters, the auditor said nothing had come to its attention that caused it to believe the consolidated results failed to meet the disclosure requirements of Regulation 33 of the Securities and Exchange Board of India, or SEBI, Listing Obligations and Disclosure Requirements Regulations, 2015.

The document is a limited-review report rather than a full audit opinion. The auditor said it performed the work under Standard on Review Engagements 2410, which involves inquiries and analytical procedures to obtain moderate assurance and has a narrower scope than an audit.

Which Kati Patang balances were subject to confirmation?

Kati Patang’s review does not specify the balance-sheet line items covered by the confirmation matter. Its consolidated balance sheet nonetheless reported trade receivables of Rs 11.3472 crore and trade payables of Rs 3.9536 crore at 30 September 2026, compared with Rs 7.475 crore and Rs 1.0974 crore, respectively, at 31 March 2026.

Trade receivables increased by Rs 3.8722 crore over the six months, while trade payables rose by Rs 2.8562 crore. These movements give context for the reported balance-confirmation issue, but the auditor did not say that the observation was confined to trade receivables and trade payables or that either line required an adjustment.

The report also gives no itemised disclosure for the statutory dues that remained outstanding at 30 September 2026. The consolidated balance sheet included other current liabilities of Rs 0.2875 crore and provisions of Rs 0.9421 crore, but neither the financial statements nor the review report identifies the statutory component within those line items.

What unaudited subsidiary information did Kati Patang include?

Kati Patang included interim financial information that had not been audited by the relevant entities’ auditors, covering total assets of Rs 52.6855 crore at 30 September 2026. The auditor named Empyrean Spirits Private Limited, or ESPL, its foreign subsidiary Kati Patang Limited (UK), and Agnetta International Private Limited as the entities whose information was considered in the consolidated unaudited results.

For the half year ended 30 September 2026, the included subsidiary information showed revenue of Rs 10.6262 crore, net loss after tax of Rs 4.5147 crore and total comprehensive loss of Rs 4.453 crore. The report does not provide a separate revenue, asset or loss breakdown for ESPL, Kati Patang Limited (UK), and Agnetta International.

Kati Patang obtained control of Agnetta International through a 100% equity-interest acquisition effective 20 May 2026. The balance-sheet notes say the transaction was accounted for provisionally under Indian Accounting Standard 103, or Ind AS 103, because fair valuations of certain identifiable intangible assets, property, plant and equipment, and contingent liabilities had not been finalised.

The purchase price allocation for Agnetta International is to be finalised within a measurement period of up to 12 months from the 20 May 2026 acquisition date. At 30 September 2026, consolidated intangible assets were Rs 21.2197 crore, compared with Rs 19.1348 crore at 31 March 2026, while total consolidated assets increased by Rs 11.5468 crore.

How did Kati Patang’s consolidated results and financial position change?

Kati Patang reported consolidated total income of Rs 10.7288 crore for the half year ended 30 September 2026, up from Rs 6.0347 crore a year earlier, but its net loss after tax increased to Rs 4.5147 crore from Rs 3.0614 crore. Total expenses rose to Rs 15.2245 crore from Rs 6.8789 crore over the same comparison.

The income comparison has a presentation change affecting alcohol and beer revenue. From the current financial year, Kati Patang includes excise duty in revenue from operations and presents the same amount separately as an expense under excise duty on sale of goods; earlier results showed alcohol and beer revenue net of excise duty.

Consolidated current assets rose to Rs 23.0954 crore at 30 September 2026 from Rs 14.4045 crore at 31 March 2026. Current liabilities rose to Rs 9.4121 crore from Rs 4.8916 crore, including trade payables of Rs 3.9536 crore and lease liabilities of Rs 2.4821 crore at the September reporting date.

Conclusion

Kati Patang’s 14 November 2026 consolidated limited review records two unresolved reporting matters at 30 September 2026: receivable and payable balances awaiting confirmation, and certain statutory dues still outstanding. It also relies on unaudited subsidiary information reflecting Rs 52.6855 crore of assets and a Rs 4.5147 crore half-year net loss after tax, as group expenses exceeded income.

The next disclosed matter to watch is the finalisation of the provisional purchase price allocation for the 20 May 2026 Agnetta International acquisition, which may take up to 12 months from that date. Future Kati Patang disclosures could also provide the amount and resolution status of the balance-confirmation matters and statutory dues identified in the September 2026 review.