Company's Regulatory Communication
Raj Rayon Industries Limited submitted a disclosure to the National Stock Exchange of India Limited and BSE Limited on May 14, 2026, regarding the outcome of its Board meeting held on the same date. The communication was made pursuant to Regulation 30 and 33 read with Para A of Part A of Schedule III of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.
Board Meeting Decisions and Financial Results
The Board of Directors meeting commenced at 12:00 noon and concluded at 1:00 p.m. on May 14, 2026. Key decisions included:
1. Approval of Audited Financial Results: The Board approved and took on record the audited Financial Results of the Company for the quarter and year ended March 31, 2026. The summarized audited Financial Results and Auditors' report were enclosed as Annexure I.
2. Resignation of Key Managerial Personnel: The Board accepted the resignation of Mr. Chintan Dharod from the post of Company Secretary and Compliance Officer (Key Managerial Personnel) with effect from close of business hours on May 14, 2026. Details were provided in Annexure II.
3. Appointment of New Compliance Officer: The Board appointed Ms. Ritu Shukla (ICSI Membership No. A63834) as Company Secretary and Compliance Officer under the Companies Act, 2013 read with Regulation 6 of SEBI (LODR) Regulations, 2015, effective May 15, 2026. Details were provided in Annexure III.
Financial Results Clarification
The audited Financial Results for quarter and year ended March 31, 2026 showed:
Quarter Ended March 31, 2026 (Audited) vs March 31, 2025 (Audited):
- Revenue from operations: ₹29,481.72 lakhs vs ₹20,584.51 lakhs
- Total income: ₹29,588.09 lakhs vs ₹20,845.68 lakhs
- Profit before tax: ₹755.77 lakhs vs ₹745.93 lakhs
- Profit after tax: ₹1,403.21 lakhs vs ₹1,344.35 lakhs
- Basic EPS: ₹0.25 vs ₹0.24
Year Ended March 31, 2026 (Audited) vs March 31, 2025 (Audited):
- Revenue from operations: ₹117,971.70 lakhs vs ₹84,937.94 lakhs
- Total income: ₹118,461.74 lakhs vs ₹85,413.12 lakhs
- Profit before tax: ₹3,230.77 lakhs vs ₹826.35 lakhs
- Profit after tax: ₹3,399.28 lakhs vs ₹1,380.61 lakhs
- Basic EPS: ₹0.61 vs ₹0.25
- Net worth: ₹15,647.46 lakhs
Regulatory Compliance and Audit Qualifications
The company declared pursuant to Regulation 33(3)(d) of SEBI (LODR) Regulations, 2015 that the Statutory Auditors issued their report with modified opinion. The Statement on Impact of Audit Qualifications was attached as Annexure IV.
The audit qualification related to three inoperative bank accounts continuing in the company's name from prior to the Corporate Insolvency Resolution Process when current management was not in charge. The management is in process to obtain details of these accounts, and auditors were unable to comment on the impact arising from subsequent availability of pending bank statements.
Notes to Financial Results
Key notes included:
- Other Income includes ₹2.50 crores received from VAT department in Q2 FY2025-26 which was earlier provisioned/written off as Exceptional item in FY2021-22
- Management has sent letters to in-operative bank accounts for closure and awaits response
- Status of new labour codes implementation remains unchanged, now deferred to next financial year
- Company reversed provision of ₹55 lakhs created for non-compliance with minimum public shareholding requirement of 25%
- Company is primarily engaged in single business segment of Manufacturing & Marketing of Textiles Yarns