Board Meeting Details

The Board of Directors meeting was held on Tuesday, May 26, 2026, commencing at 1:00 PM and concluding at 3:35 PM.

Key Decisions Approved

1. Audited Financial Results: Approved the audited financial results for the quarter and year ended March 31, 2026, as reviewed and recommended by the Audit Committee.

2. Dividend Recommendation: Recommended a final dividend of ₹10.00 per equity share (100% comprising normal final dividend of 30% and special final dividend of 70% on face value of ₹10 each) for FY ended March 31, 2026, subject to member approval at the ensuing Annual General Meeting.

Financial Results Overview (Amounts in ₹ lakh)

Quarterly Performance (Q4 FY26)

  • Total Income: ₹691.65 lakh
  • Total Expenses: ₹388.08 lakh
  • Profit Before Tax: ₹301.84 lakh (before exceptional items: ₹303.57 lakh)
  • Exceptional Items: ₹17.32 lakh (related to new labour codes implementation)
  • Tax Expense: ₹107.67 lakh
  • Profit After Tax: ₹194.16 lakh
  • Earnings Per Share (Basic): ₹8.52
  • Earnings Per Share (Diluted): ₹8.46

Annual Performance (FY26)

  • Total Income: ₹2,570.21 lakh
  • Total Expenses: ₹1,447.43 lakh
  • Profit Before Tax: ₹1,121.05 lakh (before exceptional items: ₹1,122.78 lakh)
  • Exceptional Items: ₹17.32 lakh
  • Tax Expense: ₹259.94 lakh
  • Profit After Tax: ₹861.10 lakh
  • Earnings Per Share (Basic): ₹37.80
  • Earnings Per Share (Diluted): ₹37.50

Balance Sheet Position (as at March 31, 2026)

  • Total Assets: ₹14,876.01 lakh (Previous year: ₹12,450.74 lakh)
  • Financial Assets: ₹14,686.90 lakh (including Loans: ₹13,739.38 lakh)
  • Borrowings: ₹8,541.67 lakh
  • Equity Share Capital: ₹224.87 lakh
  • Other Equity: ₹5,990.88 lakh
  • Total Liabilities and Equity: ₹14,876.01 lakh

Cash Flow Statement (FY26)

  • Net Cash Used in Operating Activities: ₹(566.45) lakh
  • Net Cash Used in Investing Activities: ₹(10.01) lakh
  • Net Cash Generated from Financing Activities: ₹701.79 lakh
  • Net Increase in Cash and Equivalents: ₹125.33 lakh
  • Cash and Equivalents at Year-End: ₹763.34 lakh

Key Notes to Financial Statements

1. Labour Codes Implementation: New Labour Codes effective November 21, 2025, resulted in past period employee benefit liability of ₹17.32 lakh reported as exceptional item in Q4 FY26. Related deferred tax asset recognized. Central Government notified Rules on May 8, 2026, but State Rules are yet to be notified.

2. Segment Reporting: Company primarily engaged in providing loans to Small and Medium Enterprises with no overseas operations, hence no segment reporting required.

3. Group Structure: No holding/subsidiary/JV/associate concerns.

4. RBI Compliance: Disclosures provided pursuant to RBI circular RBI/DOR/2021-22/86 for loans transferred/acquired:

  • Aggregate loans transferred: ₹528.20 lakh
  • Weighted average maturity: 1.22 years
  • Weighted average holding period: 1.46 years
  • Retention of beneficial economic interest: 16.40%
  • Tangible security coverage: 3.78 times
  • No stressed loans transferred or acquired

5. Project Finance: Disclosures provided pursuant to RBI (Project Finance) Directions, 2025 regarding projects under implementation and resolution processes.

6. Dividend: Dividend recommendation of 100% (30% normal + 70% special) subject to shareholder approval.

Document Availability

The disclosure along with enclosures is available on the company website: www.cslfinance.in