Detailed Summary

Key Quantitative Figures

  • Net Loss for FY 2025-26: ₹1,138.21 thousand (Previous Year: ₹1,597.76 thousand loss).
  • Loss before Tax: ₹1,138.21 thousand.
  • Total Income: ₹8.27 thousand (primarily interest income).
  • Employee Benefits Expense: ₹300.00 thousand.
  • Other Expenses: ₹846.48 thousand.
  • Paid-up Equity Share Capital: ₹30,044 thousand (30,014 equity shares of ₹1,000 each).
  • Other Equity (Negative): ₹(151,729.01) thousand, resulting in negative total equity of ₹(121,685.01) thousand.
  • Current Liabilities: ₹136,464.77 thousand, primarily consisting of:
  • Borrowings (Unsecured, repayable on demand): ₹124,825.81 thousand (largely from a related party, Simplex Realty Limited: ₹113,315.81 thousand).
  • Other Financial Liabilities: ₹11,636.75 thousand (includes interest-free sales tax loan of ₹4,758.52 thousand).
  • Current Assets: ₹14,554.44 thousand, primarily consisting of:
  • Cash and Cash Equivalents: ₹41.94 thousand.
  • Other Bank Balances (Unclaimed Fractional Shares): ₹625.71 thousand.
  • Other Current Assets: ₹13,886.79 thousand (Deposit against disputed excise demand: ₹13,150.71 thousand; Advance tax: ₹736.08 thousand).
  • Earnings Per Share (Basic/Diluted): ₹(37.92) per share (Previous Year: ₹(53.23)).
  • Total Fees Paid to Statutory Auditors (Khandelwal and Mehta LLP): ₹27.50 thousand (Audit Fees: ₹20.00 thousand; For other services: ₹7.50 thousand).
  • Sitting Fees Paid to Directors: ₹70.50 thousand.

Dates of Action

  • 32nd AGM Date: Tuesday, 4th August 2026 at 12:00 PM, to be held through Video Conferencing/Other Audio-Visual Means (VC/OAVM).
  • Book Closure: From Wednesday, 29th July 2026 to Tuesday, 4th August 2026 (both days inclusive).
  • Record Date (Cut-off) for AGM: Tuesday, 28th July 2026.
  • Remote e-Voting Period: Saturday, 1st August 2026 (9:00 AM) to Monday, 3rd August 2026 (5:00 PM).
  • Board Meetings Held During FY26: 20th May 2025, 5th August 2025, 12th November 2025, 10th February 2026.
  • Appointment of Shrikrushna N. Pawar: Effective from 16th June 2026 (subject to shareholder approval).
  • Cessation of Smt. Sita Sunil: Ceased as Director w.e.f. 7th April 2026.

Parties Involved

  • Regulators: BSE Limited, SEBI.
  • Statutory Auditors: Khandelwal and Mehta LLP, Chartered Accountants.
  • Secretarial Auditors: M/s. Taher Sapatwala & Associates, Company Secretaries.
  • Internal Auditors: M/s. V.K. Goyal & Associates, Chartered Accountants.
  • Banker: State Bank of India, Mumbai.
  • Registrar and Transfer Agent (RTA): Purva Sharegistry (India) Private Limited.
  • E-Voting & AGM Facility Provider: National Securities Depository Limited (NSDL).
  • Scrutinizer for E-Voting: Shri Binit Kumar, Practicing Company Secretary.
  • Board of Directors (as of 31.03.2026): Shri Shekhar R Singh (Non-Executive), Shri Manish Harshey (Independent), Smt. Fatima Fernandes (Non-Executive). Shri Shrikrushna N. Pawar was appointed as an Additional (Non-Executive Independent) Director on 16th June 2026.
  • Key Managerial Personnel (KMP): Shri Dinesh Chandra Shrimali (CEO & CFO), Shri Bikash Singh (Company Secretary).
  • Related Parties: Simplex Realty Limited (Significant Influence), Directors, KMPs.

Purpose and Rationale

  • The Annual Report is a statutory filing to provide shareholders with the company's financial performance, operational updates, and governance reports for the year.
  • The purpose of the proposed land sale (Survey No. 339, Village Konari, Gondia) is to "optimize the Company's asset portfolio, unlock idle capital from the non-operational asset, and utilize the proceeds for the best interest of the Company and its stakeholders." The net proceeds are intended for general corporate purposes. The land, admeasuring 0.61 hectares, has remained vacant and non-revenue generating since acquisition in 2001.
  • The appointment of Shri Shrikrushna N. Pawar is to fill a vacancy and ensure compliance with board composition requirements, considering the upcoming retirement of another independent director.

Financial and Operational Impact

  • Explicitly Disclosed Impact: The company has reported a net loss for the year. The sale of land, if approved and executed, is expected to generate cash inflow, which will be used for general corporate purposes. The financial statements have been prepared on a going concern basis despite a material uncertainty noted by the auditors due to accumulated losses and negative net worth.
  • Capital Structure Impact: No impact on share capital during the year. The negative net worth increased further due to the loss incurred.
  • Cash Flow Implications: The company used cash in operating activities (₹1,199.43 thousand). There was a net cash inflow from financing activities (₹400 thousand from borrowings) and investing activities (₹650 thousand from repayment of an inter-corporate deposit).

Contingent Liabilities and Risks

  • Disputed Excise Duty Demands: ₹333,641.22 thousand for the period 1994-2000, pending before CESTAT. A deposit of ₹13,150.71 thousand has been made against this demand.
  • Interest on Sales Tax Loan: ₹27,723.93 thousand (disclosed as contingent liability). The principal of the sales tax loan (₹4,758.52 thousand) is recorded as a liability.
  • Material Uncertainty: The Auditors' Report includes an "Emphasis of Matter" paragraph highlighting that the company's accumulated losses and fully eroded net worth indicate a material uncertainty that may cast significant doubt on its ability to continue as a going concern.

Forward-Looking Statements

  • Management Commentary in the MD&A section discusses industry structure, opportunities, threats, and risks for the paper industry in India. The company's specific strategy involves focusing on "operational efficiency, cost optimization and strengthening of internal processes."
  • The company states that the accounts have been prepared on a going concern basis as "the Management is evaluating other options."

Corporate Actions and Changes

  • Dividend: No dividend recommended for FY26.
  • Director Changes: Smt. Sita Sunil ceased to be a director w.e.f. 7th April 2026. Shri Shrikrushna N. Pawar was appointed as an Additional Director (Non-Executive Independent) w.e.f. 16th June 2026, subject to shareholder approval at the AGM for a term until 15th June 2031.
  • Share Capital: No issuance or change in share capital during the year.
  • Compliance: The Secretarial Audit Report and Statutory Audit Report did not contain any qualifications regarding compliance with statutory provisions.

Additional Information

  • The company's equity shares are listed on BSE Limited. Annual listing fees for 2026-27 have been paid.
  • The company does not have any subsidiaries, associates, or joint ventures.
  • The company did not accept any public deposits during the year.
  • The company is not governed by the CSR provisions under Section 135 of the Companies Act, 2013.
  • The company has only two employees on its payroll as of 31st March 2026.