Financial Results Overview
Quarter Ended 30.09.2026 (Unaudited):
- Revenue from Operations: ₹3,569.05 lakh (vs. ₹2,234.18 lakh in Q2 FY26)
- Other Income: ₹64.00 lakh
- Total Income: ₹3,633.06 lakh
- Total Expenses: ₹3,576.74 lakh
- Profit Before Tax: ₹56.32 lakh (vs. loss of ₹159.73 lakh in Q2 FY26)
- Tax Expense (Deferred Tax): ₹25.87 lakh
- Net Profit: ₹30.45 lakh (vs. net loss of ₹196.82 lakh in Q2 FY26)
- Other Comprehensive Income: ₹2.49 lakh
- Total Comprehensive Income: ₹32.94 lakh
- Basic EPS: ₹0.004
- Diluted EPS: ₹0.004
Half Year Ended 30.09.2026 (Unaudited):
- Revenue from Operations: ₹6,562.36 lakh (vs. ₹4,852.98 lakh in H1 FY26)
- Other Income: ₹121.32 lakh
- Total Income: ₹6,683.68 lakh
- Total Expenses: ₹6,523.24 lakh
- Profit Before Tax: ₹160.44 lakh (vs. loss of ₹332.79 lakh in H1 FY26)
- Tax Expense (Deferred Tax): ₹70.19 lakh
- Net Profit: ₹90.25 lakh (vs. net loss of ₹320.47 lakh in H1 FY26)
- Other Comprehensive Income: ₹2.08 lakh
- Total Comprehensive Income: ₹92.33 lakh
- Basic EPS: ₹0.01
- Diluted EPS: ₹0.01
Balance Sheet Position (as at 30.09.2026)
- Total Assets: ₹9,393.16 lakh (vs. ₹9,576.22 lakh as at 31.03.2026)
- Property, Plant & Equipment: ₹4,236.25 lakh
- Inventories: ₹3,877.16 lakh
- Trade Receivables: ₹245.90 lakh
- Cash & Cash Equivalents: ₹6.50 lakh
- Bank Balances (other): ₹61.21 lakh
- Equity Share Capital: ₹7,874.68 lakh (unchanged)
- Other Equity: ₹304.01 lakh
- Long-Term Borrowings: ₹292.68 lakh
- Short-Term Borrowings: ₹148.43 lakh
- Trade Payables: ₹622.51 lakh
Cash Flow Statement (Half Year Ended 30.09.2026)
- Cash from Operating Activities: ₹615.96 lakh
- Cash used in Investing Activities: ₹618.34 lakh (primarily purchase of PPE: ₹619.84 lakh)
- Cash used in Financing Activities: ₹76.62 lakh
- Net decrease in Cash: ₹79.00 lakh
- Cash & Cash Equivalents at end: ₹67.71 lakh
Auditor's Review Report
HB Kalaria & Associates issued a qualified review report with the following observations:
- The company did not carry out physical inspection of fixed assets or maintain a fixed asset register, preventing verification of quantities and condition.
- The company did not carry out physical inspection of inventories, preventing verification of quantities and condition.
- Certain debtor balances were written off as irrecoverable due to goods rejection by customers, with no material impact on financial statements.
- The term of the existing statutory auditor had expired, and no new auditor was appointed at the AGM. The existing auditor continued under Section 139(10) of Companies Act, 2013.
Annexure B: Statement on Deviation/Variation in Fund Utilization
- Funds raised through Rights Issue: ₹4,874.81 lakh (dated 07.10.2024)
- No deviation/variation in use of funds raised
- Utilization details:
- Repayment of long-term unsecured loan: ₹320.00 lakh allocated (₹345.67 lakh originally allocated, ₹25.40 lakh unutilized)
- Working capital requirement: ₹3,300.00 lakh fully utilized
- Corporate expense/General Corporate Purpose: ₹1,193.16 lakh utilized (₹1,194.14 lakh originally allocated, ₹19.18 lakh unutilized)
- Issue related expenses: ₹16.30 lakh utilized (₹35.00 lakh originally allocated, ₹18.70 lakh transferred to General Corporate Purpose)
Annexure C: Outstanding Default on Loans
- Total loans outstanding: ₹265.71 lakh
- Amount of default: ₹0
- Total financial indebtedness: ₹265.71 lakh
Annexure D: Related Party Transactions (Half Yearly)
Total value of transactions during reporting period: ₹173.11 lakh
Key transactions include:
- Remuneration to directors and key management personnel
- Loans to directors:
- Harikrishna S. Chauhan (Director): ₹70 lakh (unsecured, on demand, for day-to-day expense and working capital)
- Ilaben Paghdar (Director): ₹150 lakh (unsecured, on demand, for day-to-day expense and working capital)
Additional Information
- Company operations fall under single segment "Spinning of Cotton Yarn"
- Board meeting approving results held on 27th October, 2026
- The company is monitoring developments regarding implementation of New Labour Codes effective from November 21, 2025