Date: May 27, 2026

Board Meeting Outcomes

The Board of Directors meeting held on May 27, 2026 (4:30 PM to 7:55 PM) approved the Audited Financial Results (Standalone) for the fourth quarter and financial year ended March 31, 2026.

The meeting was conducted in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Results (Standalone)

Income Statement Highlights (₹ in Lakhs)

For Year Ended March 31, 2026:

  • Net loss before tax: Not clearly specified in tabular data
  • Tax expenses: ₹650.64 lakhs (includes provision for deferred tax)
  • Net loss for the year: ₹(11,360.24) lakhs
  • Total comprehensive income (after tax): ₹(1,347.00) lakhs
  • Basic EPS: ₹(27.20) per share (face value ₹2 each)

For Quarter Ended March 31, 2026:

  • Net loss for the quarter: ₹(1,342.24) lakhs
  • Total comprehensive income (after tax): ₹(1,328.48) lakhs
  • Basic EPS: ₹(26.84) per share

Balance Sheet Position as at March 31, 2026 (₹ in Lakhs)

Assets:

  • Non-current assets: ₹33.07 lakhs (Property, plant and equipment)
  • Capital work-in-progress: ₹19,835 lakhs
  • Right of use assets: ₹2,861 lakhs
  • Deferred tax assets (net): ₹4,200.84 lakhs
  • Current assets: ₹350,220 lakhs (Inventories)
  • Trade receivables: ₹20,654 lakhs
  • Cash and cash equivalents: ₹335.08 lakhs
  • Bank balances other than cash: ₹137.63 lakhs

Liabilities and Equity:

  • Equity share capital: ₹100 lakhs
  • Other equity: ₹(34,825) lakhs
  • Non-current borrowings: ₹76,373 lakhs
  • Current borrowings: Not specified
  • Trade payables: ₹136.57 lakhs (including outstanding dues of micro and small enterprises)

Cash Flow Statement (₹ in Lakhs)

Year Ended March 31, 2026:

  • Net cash flow from operating activities: ₹(2,188.42) lakhs
  • Net cash flow from investing activities: Not clearly specified
  • Net cash flow from financing activities: ₹16,261.80 lakhs (including proceeds from issue of equity share capital ₹100 lakhs)
  • Net decrease in cash and cash equivalents: ₹(819.45) lakhs

Strategic and Operational Disclosures

NCLT Resolution Plan Implementation

  • The Company received in-principle approval from NSE on March 7, 2025 for issuance of new equity shares amounting to ₹1 crore (50 lakh equity shares of ₹2 each)
  • On April 3, 2025, received subscription money and allotted new equity share capital of ₹1 crore to Successful Resolution Applicant (SRA)
  • Earlier share capital of ₹15.79 crores stands extinguished and written off in Capital Reserve
  • The SRA infused third tranche of payment, disbursed to financial creditors on July 23, 2025
  • Implementation of resolution plan stands completed as of March 31, 2026
  • Management shifting focus toward reviving operations including expanding product portfolio, entering new markets, and cost optimization initiatives

Exceptional Items and Accounting Treatments

Labour Code Impact:

  • Government notified four new Labour Codes on November 21, 2025
  • Company accounted for incremental impact of ₹20.60 lakhs during year ended March 31, 2026, disclosed as "Exceptional items"

Inventory Write-off:

  • Company wrote down inventory at Falta Unit by ₹13.97 crores
  • Inventory identified for disposal and measured at net realizable value assessed as nil due to deterioration, fungal infestation, and loss of strength
  • Resultant loss written off in Capital Reserve

Tax Treatment:

  • Brought forward tax losses amounting to ₹33.79 crore expired during financial year 2025-26
  • Corresponding Deferred Tax Asset previously recognized on such losses has been reversed
  • Deferred Tax Assets relating to current year tax losses recognized to extent management considers probable future taxable profits will be available

Notes to Financial Results

1. Financial results reviewed by Audit Committee and approved by Board of Directors on May 27, 2026

2. Figures for quarter ended March 31, 2026 are balancing figures between limited reviewed year-to-date and unaudited figures for 9 months ended December 31, 2025

3. Prepared in accordance with Indian Accounting Standards (Ind AS)

4. Company primarily engaged in manufacturing silk yarn, fabrics, home furnishings, fashion fabrics, handloom fabrics, and embroidered fabrics

5. Single reportable segment under Ind AS 108

#Tags: #EasternSilk #FinancialResults #NCLT #ResolutionPlan #InventoryWriteOff