Allcargo Logistics Limited
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the accompanying standalone financial statements of Allcargo Logistics Limited (“the Company”), which comprise the Balance Sheet as at March 31, 2026, and the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended, and notes to the standalone financial statements, including material accounting policy information and other explanatory information (hereinafter referred to as the “standalone financial statements”).
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (“the Act’) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with Companies (Indian Accounting Standards) Rules, 2015, as amended (“Ind AS”) and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2026, and its profit (including other comprehensive income), changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those SAs are further described in the Auditor’s Responsibilities for the Audit of the standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the
Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Emphasis of Matters
a. We draw attention to Note 45A in the standalone financial statement with respect to composite scheme of arrangement involving the demerger of the international supply chain business from the Company, as approved by the National Company Law Tribunal on October 10, 2025 and the accounting treatment thereof overriding the requirements of applicable Ind AS.
b. We draw attention to Note 56 in the accompanying standalone financial statements, which describes the search operations carried out by the Income Tax Authorities during the previous year ended March 31, 2025, at various premises of the Company, its erstwhile subsidiary and group company business premises and at the residences of three of its key managerial personnel, the consequent notice received and the management’s position thereof.
Our opinion is not modified in respect of these matters.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the standalone financial statements of the current year. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.
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Sr.
No
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Key Audit Matters
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How the Key Audit Matters was addressed in our audit
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1
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Refer note 45 on business combination to the Standalone
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Our audit procedures include the following:
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financial statements.
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1.
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We read the Scheme approved by NCLT to
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The Company during the year accounted for a composite
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understand the key clauses including the
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scheme of arrangement (“Scheme”) involving demerger
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appointed date, effective date, and the
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of International Supply Chain business of the Company
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accounting treatment prescribed therein.
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into a separate entity and merger of certain subsidiaries (including step down subsidiary into the Company. The Scheme was approved by the Hon’ble National Company Law Tribunal (NCLT) on October 10, 2025.
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2.
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We evaluated the design and implementation and tested the operating effectiveness of key internal financial controls related to the accounting of the
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Demerger of international supply chain business:
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scheme.
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This business comprises significant portion of the
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3.
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We evaluated the accounting treatment
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operations of the Company. Further, in order to comply
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prescribed in the Scheme with reference to
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with the Scheme, the Company accounted for the
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the requirements of the applicable Ind AS.
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demerger from the appointed date i.e. October 01, 2023 instead of the effective date of the Scheme and restated
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4.
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We assessed the overriding effect of
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the comparative information.
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accounting treatment prescribed in the Scheme in relation to demerger of
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The accounting of the demerger is inherently complex
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international supply chain business on
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since it involves significant judgement particularly in
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the standalone financial statements of
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relation to identification and allocation of assets and
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the Company including the effect on the
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liabilities transferred to the resultant company, and
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presentation and disclosures.
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applicable presentation and disclosure requirements.
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5.
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We obtained the carve-out financial
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In view of these complexities and judgements, we have
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information of the demerged business
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considered the above demerger as a Key Audit Matter.
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and evaluated the management basis
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Further, considering that the accounting treatment
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for identification and allocation of assets
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prescribed under the Scheme overrides the requirements
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and liabilities transferred to the resultant
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of applicable Ind AS, this matter is also considered
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company such as basis of allocation of
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fundamental to the user’s understanding of the
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common assets and liabilities and tested
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accompanying standalone financial statements.
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supporting assumptions and underlying
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Common control business combination of Subsidiaries
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data on a sample basis.
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and Step-down subsidiary involved in domestic supply
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6.
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We verified the accounting entries relating
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chain business.
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to cancellation and issuance of share
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The Scheme also involves merger of certain subsidiaries including step down subsidiaries into the Company and are considered material to the standalone financial statements.
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capital, adjustments of reserves, and re-statement of comparative financial information with reference to Ind AS 103
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to the extent pertains to common control business combination.
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The accounting of the common control business combination under Appendix C to Ind AS 103 is inherently complex since it involves significant judgement
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7.
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We obtained the merged entities financials and tested the accounting entries for
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particularly in relation to, adjustment of the resultant debit
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balance of capital reserve against the reserve identified
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8.
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We evaluated the adequacy of disclosures
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in the Scheme, inter-company eliminations, restatement
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made in the Standalone financial
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of comparative information, and applicable presentation
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statements with reference to applicable
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and disclosure requirements.
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IND AS and Schedule III to the Companies
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In view of these complexities and judgements, we have considered the above common control business
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Act, 2013, in relation to the demerger and common control business combination.
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combination as a Key Audit Matter.
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Sr.
No
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Key Audit Matters
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How the Key Audit Matters was addressed in our audit
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2
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Recoverability of trade receivables
The gross balance of trade receivables as at March 31, 2026 amounted to Rs. 519 Crores, against which the Company has recorded expected credit loss provision of Rs. 90 Crores.
The Company has a formal policy for evaluation of recoverability of receivables and recording of impairment loss which is applied at every period-end.
In accordance with Ind AS 109 ‘Financial Instruments’, the Company applies Expected Credit Loss (ECL) model for measurement and recognition of impairment loss on trade receivables which is based on the historical credit loss experience, current conditions and forecasts of future conditions. In calculating expected credit loss, the Company has also considered customer accounts as well as experience with collection trends and current economic and business conditions.
Due to significance of the trade receivables balance to the Standalone Financial Statements as a whole and with the involvement of estimates and judgement, we have considered recoverability of trade receivables as key audit matter.
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Our audit procedures include the following:
1. We evaluated the Company’s policies, processes and financial controls relating to the monitoring of trade receivables and review of credit risks of customers.
2. We examined the management’s assessment of recoverability of receivables.
3. We circularized requests for balance confirmations on sample basis and examined response.
4. We inspected relevant contracts and correspondence with the customers on sample basis, assessment of their creditworthiness with reference to publicly available information, where applicable.
5. We obtained evidence of receipts from customers after the period end on test check basis.
6. We evaluated management’s estimates and the inputs used by management for development of the ECL model, analysis of ageing of receivables, assessment
of material overdue individual trade receivables including specific customer balances.
7. We tested the mathematical accuracy and computation of the allowances by using the same input data used by the Company.
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Information Other than the Standalone Financial Statements and Auditor’s Report Thereon
The Company’s Board of Directors is responsible for the other information. The other information comprises the information included in the Annual Report including Director’s report, but does not include the standalone financial statements and our auditor’s report thereon, which we obtained prior to the date of this auditor’s report, and the Director’s report, which is expected to be made available to us after that date.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Board of Directors for the Standalone Financial Statements
The Company’s Management and Board of Directors are responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards specified under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds
and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, the Board of Directors of the Company are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
We give in “Annexure A” a detailed description of Auditor’s responsibilities for Audit of the Standalone Financial Statements.
Other Matter:
a. The standalone financial statements of the Company for the year ended March 31, 2025, were audited by another auditor whose report dated May 24, 2025 expressed an unmodified opinion on those statements.
b. The restated financial information for the year ended March 31, 2025 which is included in as
corresponding financial information includes the financial statements and other financial information in respect of erstwhile subsidiaries/ step down subsidiary Allcargo Gati Limited, Gati Express Supply Chain Private Limited, Allcargo Supply Chain Private Limited for the financial year ending March 31, 2025. The said information have been audited by the respective independent auditors of those companies and have been furnished to us by the management. Our opinion, in so far as it relates to the amounts and disclosures included for the previous year is based solely on the reports of other independent auditors. As mentioned in emphasis of matter paragraph above and Note 45 to the statement, financial statements for the year ended March 31, 2025 have been restated.
Report on Other Legal and Regulatory
Requirements
1. As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”), issued by the Central Government of India in terms of sub-section (ll) of section 143 of the Act, we give in “Annexure B” a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit of the aforesaid standalone financial statements.
(b) In our opinion, proper books of account as required by law relating to preparation of the aforesaid standalone financial statements have been kept by the Company so far as it appears from our examination of those books, except that in the absence of sufficient appropriate audit evidence in respect of one software we are unable to comment whether back-up of the books of account and other books and papers maintained in electronic mode, have been kept in servers physically located in India on a daily basis as explained in Note 54 to the standalone financial statements.
(c) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive income), the Statement of Changes in Equity and the Statement
of Cash Flows dealt with by this Report are in agreement with the books of account maintained for the purpose of preparation of the standalone financial statements.
(d) In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act.
(e) On the basis of the written representations received from the directors as on March 31, 2026 taken on record by the Board of Directors, none of the directors are disqualified as on March 31, 2026 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) The modification relating to the maintenance of accounts and other matters connected therewith are as stated in paragraph 2(b) above on reporting under Section 143(3)(b).
(g) With respect to the adequacy of the internal financial controls with reference to standalone financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in “Annexure C”.
(h) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements - Refer Note 37 to the standalone financial statements.
ii. The Company did not have any longterm contracts including derivative contracts for which there were any material foreseeable losses.
iii. The following are the instances of delay in transferring amounts, required to be transferred, to the Investor Education and
Protection Fund by the Company during the year ended March 31, 2026:
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Sr.
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Date of
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Amount in
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No of days
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No.
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Payment
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crore
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delay
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1
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Not yet deposited
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0.02
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Not
deposited
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iv a. The Management has represented that, to the best of it’s knowledge and belief, as disclosed in the note 53(iv) to the s (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
b. The Management has represented that, to the best of it’s knowledge and belief, as disclosed in the note 53(v) to the standalone financial statements, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
c. Based on the audit procedures performed that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e) contain any material mis-statement.
v. The Company has neither declared nor paid any dividend during the year.
vi. Based on our examination, which included test checks, the Company has used an accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software. Further, during the course of our audit, we did not come across any instance of audit trail feature being tampered with. Additionally, the audit trail of prior year has been preserved by the Company as per the statutory requirements for record retention.
3. In our opinion, according to information, explanations given to us , the remuneration paid
or provided by the Company to its directors are not within the limits laid prescribed under Section 197 read with Schedule V of the Act. The company will take necessary approval from the members of the company in the ensuring annual general meeting.
For M S K C & Associates LLP
Chartered Accountants
ICAI Firm Registration Number - 001595S/S000168
Ojas D. Joshi
Partner
Membership No. 109752
UDIN: 26109752PMTEXX2576
Place: Mumbai
Date: May 14, 2026
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