The Board of Directors of Sri Lakshmi Saraswathi Textiles (Arni) Limited held a meeting on Thursday, November 12, 2026, which commenced at 11:30 AM and concluded at 12:50 PM. The Board approved the unaudited financial results for the second quarter and six months ended September 30, 2026.

Financial Performance Highlights

Quarter Ended September 30, 2026 (Q2 FY27):

  • Total Income from Operations: ₹2,192.59 lakhs
  • Net Loss Before Tax: ₹(695.23) lakhs
  • Net Loss After Tax: ₹(621.30) lakhs
  • Earnings Per Share (Basic & Diluted): ₹(18.64)

Half Year Ended September 30, 2026 (H1 FY27):

  • Total Income from Operations: ₹4,264.78 lakhs
  • Net Loss Before Tax: ₹(1,323.74) lakhs
  • Net Loss After Tax: ₹(1,173.14) lakhs
  • Earnings Per Share (Basic & Diluted): ₹(35.20)

Comparative Figures:

  • Q2 FY26 Net Loss After Tax: ₹(330.28) lakhs
  • H1 FY26 Net Loss After Tax: ₹(707.33) lakhs
  • FY26 Net Loss After Tax: ₹(1,574.43) lakhs

Auditor's Limited Review Report Qualifications

The statutory auditors, M/s. S. Viswanathan LLP, issued a qualified limited review report with the following key observations:

1. Material Uncertainty Related to Going Concern:

  • Accumulated losses were ₹10,514.05 lakhs as of March 31, 2026
  • Company made a loss of ₹1,173.14 lakhs for H1 FY27
  • Continued negative net worth and persistent losses over last three years
  • Financial statements prepared using going concern basis based on management's opinion that company would generate sufficient profits

2. Non-Remittance of Statutory Dues:

  • Employees' State Insurance (ESI): ₹8.06 lakhs outstanding (Oct 2025-Sep 2026), with ₹0.35 lakhs interest provision. ₹4.18 lakhs remitted on Oct 1, 2026. Balance: ₹3.89 lakhs principal + ₹0.09 lakhs interest
  • Employees' Provident Fund (EPF): ₹167.23 lakhs outstanding (Aug 2024-Sep 2026). Provisions: ₹17.25 lakhs interest + ₹17.89 lakhs damages. ₹10.06 lakhs PF + ₹2.42 lakhs interest remitted on Oct 1, 2026. Balance: ₹157.16 lakhs principal + ₹16.96 lakhs interest + ₹17.08 lakhs damages. Excludes unpaid EPF for garments division (amount unverified)
  • TDS & TCS: ₹25.34 lakhs outstanding (May 2025-Sep 2026) with ₹3.73 lakhs interest provision

3. Emphasis of Matter:

  • Capital advances outstanding for more than three years: ₹21.40 lakhs (machinery purchase) + ₹13.18 lakhs (ring frames purchase)
  • No confirmation of balance obtained

Management's Response

The management provided the following clarifications on the auditor's observations:

1. Going Concern Principle:

  • Cost control measures implemented in production and administrative expenses
  • Significant reduction in losses over previous 2-3 quarters
  • Fixed assets revalued at current actual value
  • Management hopeful of generating necessary cash flows for statutory payments in ensuing quarters

2. Statutory Dues:

  • Acknowledged the outstanding amounts as reported by auditors
  • Noted partial payments made post-reporting period

Financial Position Highlights (as of September 30, 2026)

Assets:

  • Total Assets: ₹32,426.75 lakhs
  • Non-Current Assets: ₹30,355.33 lakhs (including Property, Plant & Equipment: ₹29,059.78 lakhs)
  • Current Assets: ₹2,071.42 lakhs (including Inventories: ₹814.61 lakhs, Cash: ₹41.95 lakhs)

Equity and Liabilities:

  • Total Equity: ₹11,721.28 lakhs (Share Capital: ₹333.28 lakhs, Other Equity: ₹11,388.00 lakhs)
  • Non-Current Liabilities: ₹7,948.28 lakhs
  • Current Liabilities: ₹12,757.19 lakhs (including Borrowings: ₹5,904.70 lakhs)

Cash Flow Statement (H1 FY27)

  • Net Cash from Operating Activities: ₹(451.24) lakhs
  • Net Cash from Investing Activities: ₹29.72 lakhs
  • Net Cash from Financing Activities: ₹461.42 lakhs
  • Net Change in Cash: ₹39.90 lakhs
  • Cash at End: ₹41.95 lakhs

Additional Information

  • Textiles is the only segment of operation
  • Results reviewed by Audit Committee and approved by Board on November 12, 2026
  • Previous period figures regrouped/restated where necessary
  • Full results available on BSE website and company website