Company Disclosure Summary

Key Quantitative Figures

  • Revenue from Operations: ₹97.74 crore (FY2025-26) vs ₹86.74 crore (FY2024-25)
  • Other Income: ₹3.82 lakh
  • Total Income: ₹98.12 crore
  • Profit Before Exceptional Items and Tax: ₹19.60 crore
  • Exceptional Items (Profit on Sale of Assets): ₹(7.78) crore
  • Profit Before Tax: ₹27.38 crore
  • Net Profit: ₹27.45 crore (FY2025-26) vs ₹3.65 crore (FY2024-25)
  • Basic EPS: ₹38.57 (FY2025-26) vs ₹5.13 (FY2024-25)
  • Equity Share Capital: ₹7.12 crore (71,18,330 shares of ₹10 each)
  • Reserves and Surplus: ₹42.73 crore
  • Borrowings:
  • Long-term: ₹4.82 crore
  • Short-term: ₹30.99 crore
  • Current Ratio: 1.78 (FY2025-26) vs 0.92 (FY2024-25)
  • Return on Equity: 386% (FY2025-26) vs 51.25% (FY2024-25)

Dates of Action

  • AGM Date: September 28, 2026 at 11:30 AM
  • Book Closure: September 22-28, 2026
  • E-voting Period: September 25-27, 2026
  • Board Meeting Dates: May 30, 2025; August 13, 2025; November 14, 2025; January 12, 2026; February 13, 2026
  • Financial Year Ended: March 31, 2026

Parties Involved

  • Statutory Auditors: M/s. C S K Prabhu and Co LLP
  • Secretarial Auditor: Sri. CS.V. Prasanna
  • Internal Auditor: Smt. CA. Sasirekha Vengatesh
  • Bankers: Axis Bank Ltd
  • Registrar & Share Transfer Agents: M/s. MUFG Intime India Pvt Ltd
  • Scrutinizer: Mrs. Sasirekha Vengatesh, Chartered Accountant

AGM Agenda Items

Ordinary Business

1. Adoption of audited standalone financial statements for FY2025-26

2. Appointment of Smt. L. Nagaswarna (DIN: 00051610) who retires by rotation

Special Business

3. Reappointment of Smt. L. Nagaswarna as Whole Time Director for 3 years from August 14, 2026 with monthly salary of ₹2.50 lakh plus perquisites

4. Reappointment of Sri. D. Lakshminarayanaswamy as Managing Director for 3 years from April 1, 2026 with monthly salary of ₹4.30 lakh plus perquisites not exceeding 5% of net profits

5. Reappointment of Sri. C. Baalasubramaniyam (DIN: 00043863) as Independent Director for second term of 5 years from December 10, 2026

Financial and Operational Impact

  • Real Estate Income: ₹35.02 crore included in total revenue from joint development agreement
  • Taxation: Deferred tax credit of ₹7.26 lakh recognized; no current tax expense
  • Exceptional Items: Profit of ₹7.78 crore from sale of property, plant and equipment
  • Dividend: No dividend declared or paid during the year
  • CSR: Not applicable for FY2025-26; no expenditure incurred

Capital Structure Impact

No change in share capital during the year. 95.38% of equity shares held in dematerialized form.

Cash Flow Implications

  • Net Cash from Operating Activities: ₹1.30 crore
  • Net Cash from Investing Activities: ₹4.68 crore
  • Net Cash from Financing Activities: ₹(4.75) crore
  • Cash and Cash Equivalents: ₹0.52 lakh (negative bank balances of ₹318.86 lakh netted)

Management Commentary

  • Textile industry poised for growth with global sourcing shift away from China
  • Company restructuring product mix and reducing accounts receivables
  • Expected to perform well in near future
  • Challenges include rising competition, uncertain business environment, and cotton price fluctuations

Auditor Qualifications

Statutory auditors qualified their report noting:

  • Accounting software lacked audit trail (edit log) facility throughout the year
  • Unable to comment on preservation of audit trail as per statutory requirements

Regulatory Penalties

Company received adjudication orders from ROC, Coimbatore:

  • ₹1 lakh penalty each on company and officers for not printing CIN number in annual report (Section 12(3)(c))
  • ₹3 lakh penalty on company and ₹50,000 each on officers for non-disclosure of related party transactions with JGOM in FY2016-17 (Section 134(3)(h))

Company is in process of making appeal for waiver of penalties.

Related Party Transactions

Transactions with related parties amounting to ₹18.88 crore disclosed, primarily with:

  • Sri Ramakrishna Yarn Carriers Ltd
  • Swathy Processors Ltd
  • Suhasini Spinners Ltd
  • Sri Jaganatha Ginning & Oil Mills

All transactions claimed to be at arm's length and in ordinary course of business.

Corporate Governance

  • Board comprises 6 directors including 3 independent directors
  • 5 board meetings held during the year
  • All directors attended all board meetings
  • Committees: Audit Committee, Nomination and Remuneration Committee, Stakeholders Relationship Committee
  • Whistle Blower Policy and Code of Conduct in place