GKB Ophthalmics carries a clean audit opinion across seven years, but that opinion sits atop a record of persistent bank-return mismatches, a CRISIL D default rating, and an ₹8.82 crore labour recovery order that remains entirely unprovided. The company funds itself through promoter and subsidiary loans while routing nearly half its turnover through related-party entities, and it has not paid a dividend since 2010-11.
Key findings
- An ₹8.82 crore labour recovery order and a stack of disputed tax demands sit unprovided
Major- The Labour Commissioner issued a recovery order for ₹8,82,00,856 on 12 September 2025, and on 14 July 2026 the Mamlatdar of Bardez Taluka demanded payment within 10 days; the company is challenging the order via writ petition and has made no provision. Separately, the Commissioner of Customs imposed a differential duty of ₹2,66,66,750 on 31 July 2025, and an earlier 2016 order demands ₹5,78,43,145 in duty plus an equal penalty. Auditors have identified contingent liabilities as a Key Audit Matter, an area requiring the most judgement, in every annual report from FY2019-20 to FY2025-26. - Promoter family holds board control with remuneration structured around profit-linked limits
Minor- Mr. K.G. Gupta has been Chairman & Managing Director since at least FY2020, with his son Mr. Vikram Gupta as Non-Executive Director and another son, Mr. Gaurav Gupta, as CEO of subsidiary Lensco. The company paid minimum remuneration to Mr. K.G. Gupta in every year from FY2020 through FY2026 because it did not make a profit. A postal ballot concluded 3 November 2025 saw Resolution 1 defeated with 76.52% of votes against it, but the Chairman later acceded to a shareholder’s claim of inadvertent dissent, flipping the result to 99.84% in favour. - A material subsidiary that never operated is being liquidated, returning idle equity
Minor- GSV Ophthalmics, incorporated on 5 October 2018 to manufacture Hi-Index lenses, never commenced commercial operations and was placed into voluntary liquidation effective 21 November 2025. The parent had invested ₹11.70 crore in equity and held 79.54%; the subsidiary repaid its ₹5 crore unsecured loan to GKB during FY2025-26. Two step-down subsidiaries and one associate remain unaudited, with the auditor stating they are not material to the Group. - Accounting estimates and a payables write-back reduce reported losses
Minor- The company uses useful lives for plant and equipment that differ from Schedule II of the Companies Act based on technical assessments, a policy consistently applied from FY2019-20 through FY2023-24. Deferred tax assets of ₹5.87 crore on accumulated losses remained unrecognised as of 31 March 2026 due to absence of reasonable certainty of future profits. In FY2020-21, a trade payable of USD 2,56,543 owed to Alpha Diamond Industry Japan was written back to other income because the party could not be contacted.
What to watch
- Labour recovery order. Outcome of writ petition WP/358/2021 in Bombay High Court at Goa challenging the ₹8,82,00,856 recovery order; next hearing date not disclosed in the FY2025-26 Annual Report.
- GSV Ophthalmics dissolution. NCLT Mumbai Bench order on the dissolution petition filed 15 February 2026, pending as of the FY2025-26 Annual Report.
- CRISIL rating. Next rating action following the ‘CRISIL D Issuer Not Cooperating’ migration on 26 May 2026, and whether the company resumes cooperation.
- Bank return reconciliation. Whether quarterly stock-and-debtor statements filed with Bank of India for FY2025-26 are brought into agreement with the books, given the CARO finding again reports non-agreement.
- RPT utilisation. Actual utilisation against the proposed material RPT limits of ₹27 crore with GKB Vision and ₹15 crore with Lensco for FY2026-27.
Bottom line: This is a disclosed but deeply strained record. The audit opinion is unqualified, yet the CARO annexure has flagged the same bank-return mismatches, unpaid statutory dues, and cash losses for years running. The ₹8.82 crore labour order and the CRISIL D rating are facts, not forecasts. Watch whether the bank statements are reconciled, whether the labour writ progresses, and how much of the proposed related-party limits is actually drawn.