Board Meeting Details

The meeting of the Board of Directors was held on Friday, November 13, 2026. It commenced at 5:30 PM and concluded at 7:45 PM.

Key Board Approvals

1. Financial Results Approval

The Board approved the Unaudited Financial Results (Standalone and Consolidated) of the Company for the quarter and half year ended September 30, 2026.

2. Director Resignation

The Board accepted the resignation of Shri D Kumaravel (DIN: 00004827) as an Independent Director of the Company with effect from closure of business hours on November 13, 2026 due to personal reasons. His resignation letter dated November 13, 2026 was received.

3. Chairman Continuation

The Board approved the continuation of Mr. K.G. Baalakrishnan (DIN: 00002174) as Non-Executive Chairman of the Company beyond the age of 75 years, subject to approval of members pursuant to Regulation 17(1A) of the SEBI Listing Regulations. Mr. Baalakrishnan is not debarred from holding the office of Director by virtue of any order of SEBI or any other statutory authority.

4. Postal Ballot Process

The Board approved conducting a postal ballot process to seek member approval for the continuation of Mr. K.G. Baalakrishnan as Chairman beyond 75 years. The Board appointed Sri M. D. Selvaraj, Managing Partner of MDS & Associates LLP, Company Secretaries, Coimbatore, as the Scrutinizer for the postal ballot process. The Postal Ballot Notice will be intimated to the Stock Exchange and circulated to shareholders in due course.

Financial Results Summary

Standalone Results (₹ in Lakhs)

Quarter Ended September 30, 2026:

  • Revenue from Operations: ₹602
  • Other Income: -₹185 (negative)
  • Total Income: ₹417
  • Total Expenses: ₹1,844
  • Loss Before Tax: -₹1,426
  • Tax Expense: ₹127
  • Net Loss: -₹1,299
  • EPS: -₹5.06 (Face value ₹10 each)

Half Year Ended September 30, 2026:

  • Revenue from Operations: ₹813
  • Other Income: ₹2,072
  • Total Income: ₹2,885
  • Total Expenses: ₹3,405
  • Loss Before Tax: -₹520
  • Tax Expense: ₹127
  • Net Profit: ₹393
  • EPS: -₹1.53

Consolidated Results (₹ in Lakhs)

Quarter Ended September 30, 2026:

  • Revenue from Operations: ₹1,048
  • Other Income: -₹184 (negative)
  • Total Income: ₹864
  • Total Expenses: ₹2,296
  • Loss Before Tax: -₹1,433
  • Tax Expense: ₹129
  • Net Loss: -₹1,305
  • EPS: -₹5.08

Half Year Ended September 30, 2026:

  • Revenue from Operations: ₹1,534
  • Other Income: ₹2,073
  • Total Income: ₹3,607
  • Total Expenses: ₹4,215
  • Loss Before Tax: -₹609
  • Tax Expense: ₹149
  • Net Profit: ₹459
  • EPS: -₹1.73

Segment Information

Standalone Segment Results (₹ in Lakhs)

Textiles Segment:

  • Q2 Revenue: ₹602
  • Q2 Segment Result: -₹614 (loss)
  • Half Year Revenue: ₹813
  • Half Year Segment Result: ₹1,163 (profit)

Power Segment:

  • Q2 Revenue: Not quantifiable from data
  • Q2 Segment Result: -₹161 (loss)
  • Half Year Revenue: Not quantifiable from data
  • Half Year Segment Result: -₹244 (loss)

Consolidated Segment Results (₹ in Lakhs)

Textiles Segment:

  • Q2 Revenue: ₹578
  • Q2 Segment Result: -₹574 (loss)
  • Half Year Revenue: ₹758
  • Half Year Segment Result: ₹1,203 (profit)

Power Segment:

  • Q2 Revenue: Not quantifiable from data
  • Q2 Segment Result: -₹162 (loss)
  • Half Year Revenue: Not quantifiable from data
  • Half Year Segment Result: -₹244 (loss)

Garments Segment:

  • Q2 Revenue: ₹470
  • Q2 Segment Result: -₹28 (loss)
  • Half Year Revenue: ₹776
  • Half Year Segment Result: -₹89 (loss)

Assets and Liabilities Position

Standalone (as of September 30, 2026)

  • Total Assets: ₹35,427 lakhs
  • Total Equity: -₹44 lakhs (negative)
  • Non-Current Liabilities: ₹20,337 lakhs
  • Current Liabilities: ₹15,134 lakhs
  • Borrowings: ₹25,607 lakhs (₹17,724 non-current + ₹7,883 current)

Consolidated (as of September 30, 2026)

  • Total Assets: ₹36,136 lakhs
  • Total Equity: -₹1,891 lakhs (negative)
  • Non-Current Liabilities: ₹20,845 lakhs
  • Current Liabilities: ₹17,183 lakhs
  • Borrowings: ₹26,591 lakhs (₹17,892 non-current + ₹8,699 current)

Cash Flow Statements

Standalone Half Year Ended September 30, 2026

  • Net cash used in operating activities: -₹777.65 lakhs
  • Net cash from investing activities: ₹2,256.19 lakhs
  • Net cash used in financing activities: -₹1,469.01 lakhs
  • Net increase in cash: ₹9.52 lakhs

Consolidated Half Year Ended September 30, 2026

  • Net cash used in operating activities: -₹866.92 lakhs
  • Net cash from investing activities: ₹2,256.43 lakhs
  • Net cash used in financing activities: -₹1,376.94 lakhs
  • Net increase in cash: ₹12.57 lakhs

Auditor's Emphasis of Matter

The auditors drew attention to Note No. 4 which describes that certain creditors have initiated recovery proceedings before the NCLT involving aggregate claims of ₹10.50 crore. Of this total, ₹6.50 crore is disputed by the Company, while management is engaged in discussions for amicable settlement of the remaining ₹4.00 crore.

Management Commentary

The disclosure states that the company had been a leading producer of fabrics and garments with good brand image and was a dividend-paying company in the past. The present adverse financial condition is attributed to various extraneous factors including pandemic, geo-political tensions, tariff imposition, and drought. The company is operating at lower capacity but expects to ramp up operations with efforts to arrange working capital and support from Government of India through Free Trade Agreements with European countries and discussions with USA for favorable trade relations.

Additional Information

The information will be made available on the Company's website www.kgdenim.com. The financial results were reviewed and recommended by the Audit Committee before board approval.