Grand Oak Canyons Distillery Ltd Forensic Report - SOIC x StockScans Report

as of Sep 2026

Grand Oak Canyons Distillery Ltd's audit record has deteriorated sharply: the FY2024-25 auditor was unable to form an opinion on ₹2,153 crore of loans converted to investments, after the FY2025-26 auditor reported a ₹401 crore loan sitting with no interest accrual pending an equity conversion that never completes. The record also shows six statutory auditors in six years, a SEBI ex-parte interim order, and a ₹401 crore loan sitting with no interest accrual pending an equity conversion that never completes.

Key findings

  1. A ₹401 crore loan earns no interest while its equity conversion never completes, and filings contradict themselves on related parties Critical - The auditor reported a ₹401 crore unsecured loan to Golkonda Aluminium Extrusion Ltd as at 31 March 2026 with no interest provided, pending conversion to equity. The same report states Section 188 was not complied with for related-party transactions, yet the annual report's AOC-2 declares NIL contracts and the corporate governance report states no materially significant related-party transactions. The FY2025-26 notes list 12 associates as related parties but disclose no transaction amounts.
  2. Company filings contradict each other on whether associates exist Major - The FY2025-26 standalone financial statements list 12 associates, while the same year's Corporate Governance report and CARO report state there is no subsidiary, associate or joint venture. The CARO report also states associate financials were withheld from the auditor, and that the group's structure makes it "not feasible... to ascertain with precision the exact quantum of investments made through entities beyond two layers". Board's Reports for FY2019-20 through FY2023-24 state no associates existed, but the FY2024-25 AOC-1 form lists associates.
  3. Six statutory auditors in six years, with three resignations in three consecutive years Major - M/s V S Shah and Associates resigned in September 2021, Mr. Narayanaswamy Subramanian resigned in July 2022, and M/s. Vinay Bhushan & Associates resigned in May 2024 citing "other commitments". M/s. G S A & ASSOCIATES LLP resigned on 4 February 2025, 19 days after SEBI's ex-parte interim order of 16 January 2025, citing internal restructuring. M/S V R S K & ASSOCIATES was appointed at the 40th AGM on 2 September 2025 for five years.
  4. SEBI issued an ex-parte interim order in January 2025, and governance certificates repeatedly flag LODR non-compliance Major - SEBI issued an Ex-Parte Interim Order dated 16th January, 2025 to the company. The FY2025-26 Corporate Governance certificate, dated 05/09/2026, states the company was not in compliance with Regulation 26(1) of SEBI LODR on committee memberships. Earlier secretarial audits for FY2019-20 and FY2020-21 flagged multiple LODR violations including unpublished board meeting notices and no qualified compliance officer.
  5. Board and KMP churn is extreme, with a deactivated director DIN and a promoter reclassification to zero Major - Promoter shareholding fell from 216,151 shares in October 2021 to 0.00% in the latest period, after the FY2022-23 AGM approved reclassification of promoters as public shareholders. The FY2025-26 auditor reported the DIN of director Mr. Harsh (DIN: 09021074) is deactivated as of March 31, 2026. The same year's report contains contradictory board composition statements and inconsistent descriptions of Mr. Luv Sharma's resignation.
  6. The accounting framework is unstable, moving between Indian GAAP and Ind AS, with inventory booked at cost Major - The FY2025-26 MD&A states financial statements are prepared under Indian GAAP, while FY2022-23 statements were prepared under Ind AS. The auditor reported consolidated statements did not comply with Ind AS for the year ended 31 March 2026, and the predecessor auditor said the same for FY2024-25. Inventories are valued at cost because "the net realizable value of inventories could not be ascertained with reasonable certainty".
  7. Auditor could not verify ₹2,153 crore of loans converted to investments because borrower balance sheets were unavailable Major - For the year ended 31 March 2025, the auditor reported that loans of ₹2,153 crore to unlisted companies were converted to investments due to the borrowers' financial constraints, but those companies' balance sheets were not available at audit time. No opinion could be formed on the status of the investments.

What to watch

Bottom line: This is a record with a clean first half and a sharply deteriorating second half, and a cascade of governance failures. The core risk is that the company's own filings cannot agree on its structure, its related parties, or its accounting framework, while the auditor cannot verify the largest asset conversions. Watch the SEBI order's outcome and whether the ₹401 crore loan ever converts.