Kati Patang review flags balances awaiting confirmation and dues

Kati Patang Lifestyle Limited’s consolidated limited review for the half year ended 30 September 2026 said receivable and payable balances were subject to confirmation and certain statutory dues remained outstanding; it also included unaudited subsidiary information with Rs 52.69 crore of total assets. The auditor otherwise reported no identified material misstatement, except for these matters.

What did Kati Patang’s September 2026 review identify?

Kati Patang’s auditor identified receivable and payable balances subject to balance confirmations and certain statutory dues outstanding at 30 September 2026. The matters appeared in the Emphasis of Matter section of Rajesh Raj Gupta & Associates LLP’s consolidated limited review report, dated 14 November 2026. The report did not quantify the balances requiring confirmation, name counterparties, identify the statutory dues or provide a settlement timetable.

The auditor said that, except for the matters in paragraph 5, nothing had come to its attention that caused it to believe the consolidated results failed to disclose information required under Regulation 33 or contained a material misstatement. This was a limited review under Standard on Review Engagements (SRE) 2410 for the quarter and six months ended 30 September 2026, rather than a full audit. The auditor said an SRE 2410 review is substantially narrower in scope than an audit and does not result in an audit opinion.

Which Kati Patang subsidiary information was unaudited?

Kati Patang’s consolidated results included unaudited interim information for Empyrean Spirits Private Limited, Kati Patang Limited UK and Agnetta International Private Limited. Empyrean Spirits Private Limited was identified as a subsidiary, Kati Patang Limited UK as its foreign subsidiary, and Agnetta International Private Limited as a wholly owned subsidiary. The auditor said their interim consolidated financial statements, information or results had not been audited by their auditors.

The subsidiary information considered in the consolidated results reflected total assets of Rs 52.69 crore at 30 September 2026, half-year revenue of Rs 10.63 crore and a net loss after tax of Rs 4.51 crore. It also reported a total comprehensive loss of Rs 4.45 crore for the half year ended 30 September 2026. The auditor did not provide separate financial results for each of the three entities.

The reported Rs 4.51 crore net loss in the unaudited subsidiary information was equal to the group’s reported consolidated net loss for the half year ended 30 September 2026. The reported total comprehensive loss of Rs 4.45 crore also matched the group’s consolidated total comprehensive loss for that period. This comparison identifies the scale of the unaudited information included, but the report does not allocate consolidated income, expenses or losses among the individual subsidiaries.

How did Kati Patang’s reported balance-sheet lines change?

Kati Patang reported consolidated trade receivables of Rs 11.35 crore at 30 September 2026, compared with Rs 7.48 crore at 31 March 2026, while trade payables rose to Rs 3.95 crore from Rs 1.10 crore. The auditor did not state that every reported receivable or payable lacked confirmation. Its wording was that receivable and payable balances in the consolidated financial statements were subject to balance confirmations.

Consolidated current assets increased to Rs 23.10 crore at 30 September 2026 from Rs 14.40 crore at 31 March 2026, while current liabilities increased to Rs 9.41 crore from Rs 4.39 crore. Inventories were Rs 4.55 crore versus Rs 2.39 crore, and other current financial assets were Rs 1.69 crore versus Rs 56.73 lakh. The supplied balance sheet contains no ageing analysis for trade receivables or trade payables and no amount for the statutory dues mentioned by the auditor.

Total consolidated assets rose by Rs 11.55 crore over the six months to 30 September 2026. Intangible assets increased to Rs 21.22 crore from Rs 19.13 crore, and non-current borrowings rose to Rs 14.08 crore from Rs 12.72 crore. The balance-sheet notes also state that Agnetta International Private Limited was acquired on 20 May 2026 under provisional business-combination accounting, with valuation of certain intangible assets, property, plant and equipment and contingent liabilities still to be finalised.

How did Kati Patang’s half-year consolidated results change?

Kati Patang’s consolidated total income increased to Rs 10.73 crore for the half year ended 30 September 2026 from Rs 6.03 crore a year earlier, while its net loss widened to Rs 4.51 crore from Rs 3.06 crore. Loss before tax increased to Rs 4.51 crore from Rs 2.94 crore. The reported increase in income therefore did not coincide with a reduction in the half-year consolidated loss.

Alcohol and beer revenue was Rs 10.02 crore in the 2026 half year, compared with Rs 5.38 crore in the corresponding 2025 period. Revenue from KLP lifestyle events increased to Rs 91.44 lakh from Rs 56.92 lakh, and digital-services revenue rose to Rs 59.33 lakh from Rs 30 lakh. Total expenses increased to Rs 15.27 crore from Rs 8.57 crore, including depreciation and amortisation of Rs 5.70 crore compared with Rs 3.57 crore.

Kati Patang said its presentation of excise duty on alcohol and beer sales changed during the half year ended 30 September 2026. Revenue from alcohol and beer was previously presented net of excise duty, but from the current financial year it includes excise duty, with the same amount intended to be shown as an expense under excise duty on sale of goods. The supplied consolidated table does not display a separate excise-duty expense line or disclose the amount, limiting like-for-like comparison of alcohol and beer revenue between the two half-year periods.

Conclusion

Kati Patang’s 30 September 2026 consolidated review brings together three reporting issues: balances requiring confirmation, unspecified statutory dues outstanding at the reporting date, and unaudited information from subsidiaries. These disclosures were made alongside Rs 52.69 crore of consolidated total assets and a half-year consolidated net loss of Rs 4.51 crore.

The next disclosed matter to watch is the resolution or further disclosure of the unconfirmed balances and outstanding statutory dues, for which the report gives no timetable. The balance-sheet note also says the provisional purchase-price allocation for Agnetta International Private Limited is to be finalised within a measurement period of up to 12 months from the 20 May 2026 acquisition date.