AANANDALAKSHMI SPINNING MILLS LTD.

Board Meeting Details

The Board of Directors meeting was held on November 12, 2026, at the company's registered office from 5:00 PM to 6:00 PM. The board approved:

1. Unaudited financial results for the quarter ended September 30, 2026, along with Limited Review Report

2. Routine business matters

Financial Performance Highlights

Quarter Ended September 30, 2026 (Amounts in ₹ Lakhs):

  • Revenue from operations: ₹69.90
  • Total Income: ₹69.90
  • Total Expenses: ₹19.37
  • Profit from Continuing Operations before tax: ₹50.53
  • Profit from Continuing Operations after tax: ₹50.53
  • Loss from Discontinued Operations: ₹(18.94)
  • Net Profit/(Loss) for the quarter: ₹31.58
  • Earnings per share (Continuing and Discontinued): ₹0.90

Half Year Ended September 30, 2026 (Amounts in ₹ Lakhs):

  • Revenue from operations: ₹79.80
  • Total Income: ₹87.10
  • Total Expenses: ₹33.08
  • Profit from Continuing Operations before tax: ₹53.62
  • Profit from Continuing Operations after tax: ₹53.62
  • Loss from Discontinued Operations: ₹(45.73)
  • Net Profit/(Loss) for half year: ₹7.88

Balance Sheet Position (as at September 30, 2026)

  • Total Assets: ₹386.04 Lakhs
  • Non-current assets: ₹163.29 Lakhs (Property, Plant and Equipment: ₹191; Investment property: ₹153.17; Other financial assets: ₹8.21)
  • Current assets: ₹222.75 Lakhs (Inventories: ₹174.81; Trade receivables: ₹0.17; Cash and cash equivalents: ₹3.12; Other financial assets: ₹17.67; Current Tax Assets: ₹8.35; Other current assets: ₹18.63)
  • Total Equity: Negative ₹(1,826.56) Lakhs (Equity Share capital: ₹349.93; Other Equity: Negative ₹(2,176.49))
  • Non-current liabilities: ₹125.30 Lakhs (Borrowings)
  • Current liabilities: ₹2,087.30 Lakhs (Trade payables: ₹169.20; Other financial liabilities: ₹351.88; Other current liabilities: ₹582.44)

Discontinued Operations Details

The company discontinued its spinning division operations effective September 22, 2020, due to continued cash losses making the division unviable.

Spinning Division Results (Quarter Ended September 30, 2026):

  • Total Income: ₹0
  • Total Expenditure: ₹18.94 Lakhs (Employee Benefits: ₹1.30; Finance Costs: ₹17.64)
  • Loss for quarter: ₹(18.94) Lakhs

Assets Held for Sale: ₹15.08 Lakhs (Property, plant, and equipment)

Critical Accounting Notes

1. Going Concern Basis: Despite accumulated losses of ₹3,740.81 Lakhs and current liabilities exceeding current assets, financial statements are prepared on going concern basis considering market value of new company

2. Unprovided Interest: No provision made for interest payable on outstanding unpaid statutory TDS dues of ₹20.89 Lakhs (including arrears of ₹21.13 Lakhs up to March 31, 2026)

3. Accounting Standards: Results prepared in accordance with Indian Accounting Standards

4. Segment Reporting: Not applicable as company operates as one segment

Cash Flow Statement

For Period Ended September 30, 2026:

  • Cash generated from operations: ₹43.57 Lakhs
  • Net cash flow from operating activities: ₹83.68 Lakhs
  • Net cash used in investing activities: ₹(0.51) Lakhs
  • Net cash used in financing activities: ₹(82.43) Lakhs
  • Net increase in cash: ₹0.73 Lakhs
  • Cash and cash equivalents at end: ₹3.42 Lakhs

Auditor's Review

KS. Rao & CO, Chartered Accountants issued a qualified review report citing:

  • No provision made for interest payable on outstanding unpaid TDS dues of ₹20.89 Lakhs
  • Except for this observation, nothing has come to their attention suggesting material misstatement

The financial results were reviewed by the Audit Committee and approved by the Board of Directors.