Key Quantitative Figures

  • Revenue from operations: ₹36,303 thousand (FY26) vs. ₹53,642 thousand (FY25) - 32.32% decline
  • Net loss: ₹21,643 thousand (FY26) vs. ₹17,304 thousand (FY25)
  • Solar power generation: 1,491,913 units with estimated value of ₹47.90 lakh
  • Total assets: ₹11,87,421 thousand (FY26) vs. ₹12,06,945 thousand (FY25)
  • Share capital: ₹28,500 thousand (2,850,000 equity shares of ₹10 each fully paid)
  • Current ratio: 0.68 (FY26) vs. 0.78 (FY25)
  • Earnings per share: -₹7.59 (FY26) vs. -₹6.07 (FY25)

Dates of Action

  • AGM date: 26th September, 2026 at 11:00 AM IST
  • Book closure period: 19th September to 26th September, 2026 (both days inclusive)
  • Remote e-voting period: 23rd September (9:00 AM) to 25th September, 2026 (5:00 PM)
  • Auditor resignation date: 12th August, 2026
  • Board meeting date for auditor appointment: 21st August, 2026

Parties Involved

  • Statutory Auditors: M/s. Hiremath Patil Udgiri and Associates (new appointment), M/s. G M Pawle and Associates (resigned)
  • Secretarial Auditors: M/s. Chetan Kumbhojkar, Practicing Company Secretaries
  • Bankers: Kamala Co-Op. Bank Ltd., Main Branch, Solapur
  • Registrar & Share Transfer Agents: MUFG Intime India Pvt. Ltd.
  • Board of Directors: Mr. Kishore T Katare (Managing Director), Mrs. Vidyavati K Katare (Director), Mr. Umakant Mahindrakar (Director), Mr. Yadgiri Narayan Konda (Independent Director), Mr. Vilas Ramakant Shendge (Independent Director)

Business Operations Update

Spinning Division:

  • Remained substantially non-operational for prolonged period (3-4 years)
  • Revenue declined to ₹23.07 million from ₹46.00 million year-on-year
  • Non-operation attributed to adverse market conditions, unfavorable government policies, and unviable cotton-yarn price disparity
  • Company generating rental income from unutilized factory premises

Solar Power Division:

  • 1 MW solar power plant under net metering arrangement with MSEDCL
  • Generated 1,491,913 units during FY26
  • Primary use for captive consumption with surplus exported to grid
  • Received ₹46.51 lakh from MSEDCL for past year's exported power

Capital Structure Impact

  • No change in share capital during the year
  • No dividend recommended for FY26
  • Continued accumulation of losses in retained earnings (-₹28,955 thousand)

Corporate Governance Matters

  • Auditor Change: M/s. G M Pawle and Associates resigned due to firm restructuring; M/s. Hiremath Patil Udgiri appointed as replacement with fees of ₹50,000 for statutory audit and ₹50,000 for limited reviews
  • Director Re-appointment: Mr. Umakant Mahindrakar (DIN: 01233305) retires by rotation and seeks re-appointment
  • MD Continuation: Special resolution for Mr. Kishore T Katare (DIN: 00645013) to continue as Chairman and MD after attaining age 70, without remuneration until 30th June 2028
  • MOA Amendment: Addition of objects clause to enable battery energy storage systems (BESS) business

Financial Impact Disclosures

  • Deferred tax liability: ₹7,887 thousand recognized (increased from ₹1,980 thousand)
  • Deferred tax assets: Not recognized due to absence of virtual certainty regarding future taxable income
  • Impairment testing: Not conducted for Property, Plant and Equipment despite prolonged non-operation
  • Cash losses: Incurred in both current and immediately preceding financial year

Voting Arrangements

  • Remote e-voting through CDSL/NSDL systems for demat shareholders
  • Physical ballot option available at AGM
  • Detailed instructions provided for shareholders voting electronically
  • Scrutinizer: Mr. G. N. Pawar, Solapur

Compliance Issues noted in Secretarial Audit

  • Delays in filing e-Forms with Registrar of Companies
  • 3,650 equity shares (0.13%) held by promoters pending dematerialization
  • Non-compliance with Section 124 regarding transfer of unclaimed dividends to IEPF (pertaining to 2013 dividend)

Related Party Transactions

  • Unsecured loan from Mr. Kishore Katare: Receipts ₹1.48 million, repayments ₹8.39 million, interest payable ₹3.41 million
  • Transactions with Kamal Marketing Pvt Ltd: Purchases ₹19.36 million, sales ₹19.32 million
  • Director sitting fees: ₹8,000 each to all directors

Forward-looking Statements

Management remains cautiously optimistic about future, expecting steady growth in cotton yarn market and exponential growth in solar energy sector. Company plans to invest in technology and sustainable practices to maintain competitive edge.