A revised statutory audit report of Balmer Lawrie & Co. Ltd. for financial year 2025-26 has flagged fresh doubtful vendor transactions worth ₹1.62 crore and highlighted weaknesses in the company’s internal financial controls following observations made by the Comptroller and Auditor General.
The revised report, issued on July 1, 2026, replaces the earlier statutory audit report dated May 17, 2026. It incorporates additional observations after the CAG’s review and records further issues relating to suspected financial irregularities, vendor payments and internal control processes.
Fresh Vendor Transactions Under Scrutiny
According to the revised audit report, the key concern relates to doubtful vendor payments detected after the company’s internal review of suspected irregular payments identified last year.
Additional transactions relating to FY23 to FY25 were found during the review process. The Northern Region branch auditor identified doubtful vendor transactions worth ₹1.62 crore from previous financial years and recommended that they be examined further.
The company’s management has treated the amount as recoverable from the concerned vendors and has made a corresponding provision in its accounts. However, the auditors noted that an independent external investigation is still underway, making it difficult to determine the final financial impact at this stage.
Internal Control Weaknesses Highlighted
The revised audit report has also raised concerns over Balmer Lawrie’s internal financial control framework. Auditors pointed to long-outstanding receivables exceeding three years, discrepancies in customer account reconciliations, unallocated receipts and inadequate documentation as significant control deficiencies.
The report noted that the company continues to rely heavily on manual reconciliation processes. It said the company needs to strengthen its customer account reconciliation and monitoring mechanisms to address gaps in financial control.
The auditors issued a qualified opinion on the effectiveness of internal financial controls. They also flagged weaknesses in customer and vendor balance confirmation procedures and controls linked to the Balmerol Connect Plus loyalty programme.
External Investigation Continues
The revised audit report referred to alleged unauthorised redemption of digital loyalty coupons worth approximately ₹16.56 lakh. The company has constituted an internal committee to investigate the matter.
The report also discussed pending legal liabilities, impairment charges arising from the closure of the Refinery & Oil Field Services business and going-concern issues concerning one of the company’s subsidiaries. However, the auditors concluded that these matters did not require any modification to the overall audit opinion on the FY26 consolidated financial statements.
Balmer Lawrie said an independent external investigation into the doubtful vendor payments and other financial irregularities is continuing. The company said appropriate financial and administrative action will be taken after the investigation is completed and its findings are examined.
