Board Meeting Details

The Board of Directors meeting was held on May 29, 2026, at the corporate office in Ludhiana, Punjab, commencing at 3:00 PM and concluding at 7:30 PM.

Key Approvals and Considerations

1. Audited Financial Results: Approved audited standalone financial results for quarter and financial year ended March 31, 2026, including statement of assets and liabilities and auditor's report with unmodified opinion.

2. Fund Utilization Statement: Confirmed no deviation or variation in utilization of proceeds from preferential allotment of convertible warrants during Q4 March 2026. Funds were used for acquiring equity stake in Shiva Texfabs Limited to support expansion pending merger.

3. Internal Auditor Resignation: Accepted resignation of Mr. Sanjay Kumar as Internal Auditor effective close of business hours on May 29, 2026, due to preoccupation with other assignments.

4. New Internal Auditor Appointment: Appointed Mr. Mahender Paul as Internal Auditor for FY 2026-27 and onwards under Section 138 of Companies Act, 2013.

Financial Results Highlights (Amounts in ₹ Lakhs)

Year Ended March 31, 2026 (Audited):

  • Total Revenue: ₹273,524
  • Total Expenses: ₹308,527
  • Loss before tax: ₹(428.32)
  • Tax Expense: Current tax ₹(21.35), Deferred tax ₹(406.97)
  • Net Loss for period: ₹(395.49)
  • Total Comprehensive Income: ₹(395.49)
  • Basic & Diluted EPS: ₹(0.34)
  • Paid-up Equity Share Capital: ₹1,193.28 lakhs (Face value ₹1/-)

Quarter Ended March 31, 2026 (Audited):

  • Total Revenue: ₹53,218
  • Loss before tax: ₹(150.39)
  • Net Loss for period: ₹(139.18)
  • Total Comprehensive Income: ₹(135.38)
  • Basic & Diluted EPS: ₹(0.12)

Balance Sheet Position as at March 31, 2026

  • Total Assets: ₹13,864.92 lakhs
  • Total Equity: ₹11,934.78 lakhs
  • Total Liabilities: ₹1,930.14 lakhs
  • Non-current liabilities: ₹446.50 lakhs
  • Current liabilities: ₹1,483.64 lakhs

Cash Flow Statement FY2026

  • Net cash used in operating activities: ₹(1,673.57) lakhs
  • Net cash from investing activities: ₹0.82 lakhs
  • Net cash from financing activities: ₹1,667.85 lakhs
  • Net decrease in cash: ₹(4.90) lakhs
  • Closing cash balance: ₹6.62 lakhs

Significant Notes to Financial Statements

1. Merger Application: Application for merger with Shiva Texfabs Limited filed with NCLT on September 23, 2025, pending final order.

2. Share Warrant Forfeiture: Company forfeited 26,87,000 share warrants issued on preferential basis as warrant holders failed to exercise conversion option within stipulated period. ₹322.44 lakhs subscription money forfeited and transferred to Capital Reserve.

3. Preference Shares Redemption: 360,000 4% Non-Cumulative Redeemable Preference Shares of ₹100 each originally due for redemption on August 31, 2025, were extended to August 31, 2026, after EGM approval on August 25, 2025. Shown under current liabilities.

4. New Labour Codes: Company assessed impact of new labour codes effective November 21, 2025, and continues to comply with major provisions.

Fund Utilization Details

Preferential issue proceeds totaling ₹17,85,60,000 were utilized for:

  • Acquiring equity stake in Shiva Texfabs Limited
  • Supporting ongoing expansion of Shiva Texfabs Limited pending merger
  • Meeting working capital requirements, business expansion and general corporate purposes

No deviation from originally stated objects.

Auditor Information

Manjul Mittal & Associates, Chartered Accountants (FRN: 028039N) issued unmodified opinion on annual audited standalone financial results.