Avenue Supermarts Limited

Auditor’s report (CARO 2020)

Auditor’s assessment Material flags. Auditor: S R B C & CO LLP. Opinion: Unqualified. Fiscal year FY24-25. 0 critical, 1 material, 0 minor flags.

• Disputed statutory dues pending: The Company has multiple outstanding disputed tax liabilities totaling approximately ₹208.42 crore pending resolution across various tax authorities, primarily GST and customs disputes from prior years.

Related-party transactions

Assessment Notable. Disclosed volume of ₹5,850 Cr across 37 related parties. Fiscal year FY24-25.

• Continued large capital infusion into loss-making e-commerce subsidiary: Avenue Supermarts invested a further ₹250 crore during FY25 into Avenue E-Commerce Limited (cumulative cost ₹1,138.11 crore), while the subsidiary carries CARO para 3(xvii) adverse remarks in its audit report, suggesting ongoing funding of
• CARO adverse remark on two subsidiaries: Both Avenue E-Commerce Limited and Reflect Healthcare and Retail Private Limited received CARO Paragraph 3(xvii) qualifications in their standalone audit reports, which relates to cash losses/accumulated losses — this warrants attention giv
• Material trade receivables outstanding from subsidiary: Avenue Supermarts had ₹195.23 crore of trade receivables outstanding from Avenue E-Commerce Limited at year-end (down from ₹227.32 crore), representing over 56% of total standalone trade receivables, indicating significant credit exposure t

Contingent liabilities

Assessment Notable. Total disclosed: ₹4,557 Cr (21.3% of net worth). Fiscal year FY24-25.

• Indirect tax matters pending resolution as claims (vs ₹121.76 Cr prior year)

Corporate governance

Board of 8 directors, 50% independent. Chair: Chandrashekhar Bhave. Chair and CEO roles are separated. Statutory auditor: S R B C & Co. LLP. Fiscal year FY24-25.