In continuation to Announcement dated 13/11/2025 regarding outcome of Board Meeting, we are submitting herewith Management view/response on basis of qualification on LRR for the period ....
Price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Gravity India has submitted its response to six qualifications raised by the statutory auditor in the Limited Review Report for the quarter and half year ended September 30, 2025. The auditor flagged that the company reported Rs. 2,036.40 Lakhs in income without supporting debtor confirmations, which management says were received after the review was concluded. The auditor also noted that the company's vegetable and fruit trading activities fall outside its stated objects in the MOA; management says it is in the process of amending the object clause via MCA filing. Further qualifications include non-provisioning of gratuity as required by Ind AS 19, non-recognition of right-of-use assets under Ind AS 116, and delayed TDS deposits. Management has attributed the delays to minimal staff and unavoidable circumstances and committed to regularising all non-compliances, including amending the MOA, implementing Ind AS 116, and depositing the pending TDS with interest.
This is a significant red flag for shareholders — a qualified opinion on the limited review means the auditor has reservations about the reliability of reported numbers, particularly Rs. 2,036.40 Lakhs of unverified revenue and the validity of business activities outside the company's approved objects. Combined with Ind AS compliance gaps and TDS delays, this signals weak financial governance and could weigh on the stock, though management has outlined remedial steps.