Financial Performance Highlights (FY 2025-26 vs FY 2024-25)

  • Revenue from Operations: ₹8272.30 lakhs (prev. ₹9255.63 lakhs) - decrease of ₹983.33 lakhs (10.6%)
  • Other Income: ₹114.54 lakhs (prev. ₹240.75 lakhs) - decrease of ₹126.21 lakhs (52.4%)
  • Total Income: ₹8386.84 lakhs (prev. ₹9496.38 lakhs) - decrease of ₹1109.54 lakhs (11.7%)
  • Profit Before Tax: ₹6.40 lakhs (prev. ₹13.36 lakhs) - decrease of ₹6.96 lakhs (52.1%)
  • Profit After Tax: ₹4.70 lakhs (prev. ₹9.72 lakhs) - decrease of ₹5.02 lakhs (51.6%)
  • Earnings Per Share (basic & diluted): ₹0.03 (prev. ₹0.06)
  • Current Tax: ₹6.98 lakhs (prev. ₹5.47 lakhs)
  • Deferred Tax: (₹5.27) lakhs (prev. (₹1.83) lakhs)

Key Financial Metrics

Cost Structure (FY 2025-26):

  • Cost of Materials Consumed: ₹6436.60 lakhs
  • Employee Benefits Expense: ₹334.88 lakhs
  • Finance Cost: ₹136.84 lakhs
  • Depreciation & Amortization: ₹161.62 lakhs
  • Other Expenses: ₹1213.32 lakhs

Capital Structure:

  • Authorized Share Capital: ₹16.75 crore (1.675 crore equity shares of ₹10 each)
  • Paid-up Share Capital: ₹16.75 crore (unchanged during year)
  • Reserves & Surplus: ₹240.89 lakhs (prev. ₹236.19 lakhs)

Key Balance Sheet Items (as of 31-Mar-2026):

  • Non-Current Assets: ₹1751.41 lakhs
  • Current Assets: ₹2238.36 lakhs
  • Total Assets: ₹3989.77 lakhs
  • Equity: ₹2177.55 lakhs
  • Non-Current Liabilities: ₹261.67 lakhs
  • Current Liabilities: ₹1812.22 lakhs

Significant Events and Updates

Auditor Changes

  • M/s. RPC & Co., Chartered Accountants (FRN: 127123W) resigned as Statutory Auditors on 22nd August 2026 due to pre-occupation with other assignments
  • Board appointed M/s. Finava & Associates, Chartered Accountants (FRN: 117362W) as Statutory Auditors effective 31st August 2026 to fill casual vacancy
  • New auditors to hold office until conclusion of ensuing AGM

Compliance Issues Identified

Secretarial Audit Observations:

1. Company has not appointed Internal Auditor as required under Section 138 of Companies Act, 2013

2. Unpaid Professional Tax amounting to ₹7.69 lakhs for FY 2017-18 to September 2025 with Gujarat Professional Tax authority

3. Short deduction of TDS and interest thereon amounting to ₹3.71 lakhs for FY 2012-13 to 2018-19 with Income Tax authority

Management Response:

  • Internal Auditor appointment delayed due to non-availability of suitable qualified professional
  • Steps initiated to regularize outstanding Professional Tax dues
  • Verifying matter relating to short deduction of TDS and interest

Board and Committee Matters

Board Composition:

1. Mr. Maganlal Parvadiya (DIN: 03190749) - Chairman & Whole-time Director

2. Mr. Chandulal Parvadia (DIN: 03197876) - Whole-time Director

3. Mrs. Bindiya Ketankumar Parvadiya (DIN: 08210285) - Non-Executive Director

4. Mr. Mahendra Ghodasara (DIN: 10763914) - Independent Director

5. Mr. Niteshkumar Kantariya (DIN: 08405905) - Independent Director

Board Meetings: Held 5 times during FY 2025-26 (20/05/2025, 01/09/2025, 11/09/2025, 12/11/2025, 02/03/2026)

All directors attended all meetings

Committee Structure:

  • Audit Committee: Met 5 times
  • Nomination and Remuneration Committee: Met 2 times
  • Stakeholders Relationship Committee: Met 2 times
  • Independent Directors Meeting: Held 2 times

AGM Matters

16th Annual General Meeting Details:

  • Date: Wednesday, 30th September 2026
  • Time: 11:00 AM
  • Venue: Registered Office of the Company

Agenda Items:

1. Adoption of audited financial statements for FY 2025-26

2. Re-appointment of Mrs. Bindiya Ketankumar Parvadiya as Non-Executive Director retiring by rotation

3. Appointment of M/s. Finava & Associates as Statutory Auditors

4. Appointment of Mr. Maganlal Shambhubhai Parvadiya as Managing Director

5. Appointment of Mr. Chandubhai Shambhubhai Parvadiya as Whole-time Director

Record Date: Friday, September 25, 2026 for determining eligibility to vote

Operational Highlights

  • Business Nature: Manufacturing and processing of yarn (no change during year)
  • No Subsidiaries/JVs/Associates: Section 129 provisions not applicable
  • Dividend: No dividend recommended for FY 2025-26
  • Export Earnings: Nil
  • Import Outgo: Nil
  • Listing: BSE SME Platform; annual listing fees paid

Capital Structure Impact

No change in share capital during the year. No issuance of shares with differential rights, stock options, sweat equity, or any convertible instruments.

Cash Flow Implications

  • Net cash from operating activities: ₹363.19 lakhs
  • Net cash used in investing activities: (₹619.82) lakhs
  • Net cash from financing activities: ₹363.38 lakhs
  • Net increase in cash and cash equivalents: ₹106.75 lakhs
  • Cash and cash equivalents at year-end: ₹124.55 lakhs

Forward-looking Statements

Management Discussion & Analysis contains cautionary statement about forward-looking statements within meaning of applicable securities laws. Actual results may differ materially due to factors including demand/supply conditions, input availability and prices, government regulations, tax laws, and economic developments.