Detailed Summary

Financial Results (Quarter Ended September 30, 2026)

  • Net Sales/Income from operations: ₹0.00 lakh (no revenue from operations)
  • Other operating Income: ₹0.07 lakh
  • Total Income: ₹0.07 lakh
  • Total Expenses: ₹2.85 lakh
  • Net Loss before tax: ₹(2.84) lakh
  • Tax Expenses: ₹0.00 lakh
  • Net Loss for the quarter: ₹(2.84) lakh
  • Earnings per Share (Basic/Diluted): ₹(0.02)

Financial Results (Half Year Ended September 30, 2026)

  • Net Sales/Income from operations: ₹0.00 lakh (no revenue from operations)
  • Other operating Income: ₹1.43 lakh
  • Total Income: ₹1.43 lakh
  • Total Expenses: ₹7.89 lakh
  • Net Loss before tax: ₹(6.46) lakh
  • Tax Expenses: ₹0.00 lakh
  • Net Loss for the half year: ₹(6.46) lakh
  • Earnings per Share (Basic/Diluted): ₹(0.05)

Financial Position (as at September 30, 2026)

  • Paid-up Equity Share Capital: ₹1,380.00 lakh
  • Reserves and Surplus: ₹(1,353.09) lakh (accumulated losses)
  • Net Worth: ₹26.91 lakh
  • Total Assets: ₹243.96 lakh
  • Total Liabilities: ₹217.05 lakh
  • Borrowings from related parties: ₹134.64 lakh (unsecured)

Material Uncertainty Related to Going Concern

The Company did not earn any revenue from operations during the quarter and six months ended September 30, 2026, incurred a net loss of ₹6.46 lakh for the six months, and has accumulated losses with reserves and surplus of ₹(1,353.09) lakh against paid-up equity share capital of ₹1,380.00 lakh, resulting in a net worth of ₹26.91 lakh. The Company is dependent on funding from related parties, with borrowings of ₹134.64 lakh. These conditions indicate material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern. The financial results have been prepared on a going concern basis considering continued financial support from promoters/related parties.

Director Appointments

1. Ms. Bhavna Agrawal (DIN: 11916622): Appointed as Additional Director in category of Non-Executive Independent Director via circulation resolution passed on 29th October 2026. Term: 29th October 2026 to 28th October 2031 (5 years), subject to shareholder approval by special resolution. She is an Associate Member of ICSI (Membership No. A66978) and Company Secretary in Practice (Certificate of Practice No. 25119).

2. Mr. Prem Bharath Bist (DIN: 11916669): Appointed as Additional Director in category of Non-Executive Non-Independent Director effective 30th October 2026, based on Nomination and Remuneration Committee recommendation. Appointment subject to shareholder approval within three months. He has secondary education and knowledge of textile and silk industries.

Director Resignations

1. Mr. Kolagunda Kumar Siddappa (DIN: 08305351): Resigned as Non-Executive Non-Independent Director and Chairman effective conclusion of meeting on 30th October 2026 citing personal reasons. Confirmed no other material reasons.

2. Ms. Sheela Arvind (DIN: 01020390): Resigned as Independent Director and consequently as Chairperson of Audit Committee, Nomination and Remuneration Committee, and Stakeholders' Relationship Committee effective conclusion of meeting on 30th October 2026 due to other professional commitments. She holds directorships in Avana Electrosystems Limited (Independent Director) and Spectraa Technology Solutions Limited (Independent Director).

Board Leadership Changes

  • Mr. Prem Bharath Bist elected as Chairperson of the Board effective conclusion of meeting on 30th October 2026.

Committee Reconstitution

Effective conclusion of meeting on 30th October 2026:

  • Audit Committee: Ms. Bhavna Agrawal (Chairperson), Mr. Byadarahally Lakshmaiah Pundareeka (Member), Mrs. Poonam Gupta (Member)
  • Nomination & Remuneration Committee: Ms. Bhavna Agrawal (Chairperson), Mr. Byadarahally Lakshmaiah Pundareeka (Member), Mrs. Poonam Gupta (Member)
  • Stakeholders Relationship Committee: Ms. Bhavna Agrawal (Chairperson), Mr. Byadarahally Lakshmaiah Pundareeka (Member), Mrs. Poonam Gupta (Member)

Other Board Approvals

  • Postal Ballot Notice: Approved for seeking shareholder approval for (a) appointment of Ms. Bhavna Agrawal as Independent Director by special resolution, and (b) appointment of Mr. Prem Bharath Bist as Non-Executive Non-Independent Director by ordinary resolution.
  • Related Party Transactions Policy: Amended in line with recent amendments to Regulation 23 of SEBI LODR Regulations and SEBI Industry Standards on "Minimum information to be provided for approval of Related Party Transactions". Effective immediately.

Legal Contingency

Ongoing dispute with Cotton Corporation of India Limited regarding cotton purchases. Arbitration proceedings and legal appeals pending before Hon'ble High Court of Karnataka. Execution proceedings initiated with Proclamation of Sale issued for recovery of alleged dues amounting to ₹703.12 lakh. High Court granted interim stay on execution proceedings vide order dated January 06, 2026. Security deposits of ₹63.90 lakh fully provided for; balance disputed amount of ₹639.23 lakh disclosed as contingent liability.

Other Matters

  • Factory building remained vacant since February 2026, resulting in no rental income during quarter ended September 30, 2026.
  • Half year includes income of ₹1.38 lakh recognized in quarter ended June 30, 2026 on adjustment of repair and maintenance expenses against tenant's security deposit.
  • Chief Financial Officer did not sign the Financial Results statement.

Meeting Details

Board meeting held on 30th October 2026 at Registered Office: No 18, III Floor, Anjaneya Temple Road, Yediyur, Jayanagar, 6th Block, Bangalore-560082. Commenced at 03:00 PM and concluded at 06:35 PM.