Balmer Lawrie & Co. Ltd has disclosed a revised statutory auditor report for the consolidated financial statements for the year ended 31 March 2026, highlighting significant governance and control lapses. The report, issued by B Chhawchharia & Co, supersedes the earlier version dated 17 May 2026 following observations from the Comptroller and Auditor General of India. The auditors identified suspected fraud involving vendor payments and material weaknesses in internal financial controls, necessitating a qualified opinion on the adequacy of these controls.

The auditors flagged suspected irregular vendor payments identified during an internal examination, which led to the appointment of an external firm for an independent investigation. The Branch Auditor of the Northern Region identified additional doubtful transactions aggregating to ₹162.42 lakhs relating to earlier financial years. Consequently, the management has recognised this amount as recoverable from the concerned vendors and created a provision for the same. As the investigation is ongoing, the final impact remains unascertainable.

Further, the report highlighted a deficiency in controls over the issuance, monitoring, and redemption of digital loyalty coupons under the Balmerol Connect Plus Programme. An alleged unauthorised redemption of coupons aggregating to approximately ₹16.56 lakhs was detected. The auditors noted that the control environment was not effective in preventing or detecting pre-scanned coupons, resulting in a risk of loss to the company.

Key Audit Matters and Observations

The auditors reported several key matters, including suspected fraud, uncertain tax positions, and significant balances in trade receivables pending reconciliation. They observed that while balance confirmation procedures were performed, internal financial controls regarding documentation and follow-up required strengthening. The auditors also drew attention to an impairment loss of ₹806.64 lakhs recognised during the year regarding the closure of the SBU ROFS and disposal of related fixed assets.

Qualified Opinion on Internal Controls

In conjunction with the audit, the auditors issued a qualified opinion on the internal financial controls over financial reporting. They stated that material weaknesses existed in the design, documentation, and operating effectiveness of these controls as at 31 March 2026. Specifically, these weaknesses related to customer and vendor balance confirmations, unallocated receipts, and the controls over digital loyalty coupons. Despite these issues, the auditors affirmed that the consolidated financial statements give a true and fair view of the group's affairs.

Balmer Lawrie & Co. Ltd. announced that Amitava Bandyopadhyay will cease to be the Senior Vice President (Technical) effective July 1, 2026, due to superannuation. The disclosure was made to the stock exchanges in accordance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The company informed the National Stock Exchange of India Limited and BSE Limited about the change in its list of senior management. Amitava Bandyopadhyay was part of the senior management as defined in Regulation 16(1)(d) of the Listing Regulations.

Details of Change

The following table outlines the particulars of the cessation:

The filing was signed by Kavita Bhavsar, Company Secretary and Compliance Officer, on June 30, 2026.