Key Quantitative Figures

Financial Performance (₹ in lakhs):

  • Revenue from operations: ₹692.03 (FY26) vs ₹264.17 (FY25)
  • Other income: ₹7.97 (FY26) vs ₹18.80 (FY25)
  • Total income: ₹700.00 (FY26) vs ₹282.97 (FY25)
  • Profit before tax: ₹54.37 (continuing operations) + ₹104.16 (discontinued) = ₹158.53 total
  • Profit after tax: ₹54.37 (continuing) + ₹77.86 (discontinued) = ₹132.23 total
  • Paid-up share capital: ₹490.85 lakhs (no change during year)
  • Accumulated losses: ₹2,482.59 lakhs
  • Total borrowings: ₹1,747.36 lakhs
  • Current ratio: 0.29 (0.31 in previous year)

Related Party Transaction Limits Sought:

  • Rishikesh Yarns: ₹50 crores
  • Innovative Interiors: ₹5 crores
  • Sheshadri Industries Limited: ₹5 crores
  • Aananda Lakshmi Spinning Mills Limited: ₹5 crores
  • Suryavanshi Industries Limited: ₹5 crores

Dates of Action

  • AGM Date: 30th September 2026 at 9:30 AM
  • E-voting period: 26th September 2026 (9:00 AM) to 29th September 2026 (5:00 PM)
  • Record date closure: 19th September 2026 to 30th September 2026
  • Board meetings held: 5 meetings during FY26 (30/05/2025, 11/06/2025, 13/08/2025, 13/11/2025, 29/01/2026)
  • Financial year ended: 31st March 2026

Parties Involved

Regulatory Bodies:

  • BSE Limited (Listing exchange)
  • SEBI (Listing Regulations compliance)

Company Leadership:

  • Managing Director & CFO: Rajender Kumar Agarwal (DIN: 00041892)
  • Company Secretary: Rishabh Jain (until 12.08.2026), Pratyansha Pandey (from 12.08.2026)
  • Directors: Uttam Gupta, Adarsh Gupta, Rajani Elaprolu Kumari (from 13.08.2025)
  • Statutory Auditors: M/s. K.S. Rao & Co. (Firm Regn. No. 003109S)
  • Secretarial Auditors: M/s HSP & Associates LLP
  • Internal Auditors: LANS & Co.
  • RTA: KFin Technologies Limited

Related Parties:

  • Rishikesh Yarns (Proprietorship of relative of KMP)
  • Innovative Interiors (Partnership firm with relative of KMP)
  • Sheshadri Industries Limited (Director relative company)
  • Aananda Lakshmi Spinning Mills Limited (Director relative company)
  • Suryavanshi Industries Limited (Director relative company)

Operational and Strategic Updates

Business Transition:

The company has fully established operations for production of Bleached Cotton Linter Pulp & various Bleached Cotton Products for personal hygiene and medical applications. Regular orders are being received from Defence Industry (Munitions India Limited) for supply of pulp used in ammunition production.

Discontinued Operations:

Spinning division operations were discontinued effective 1st November 2023 due to unviability and continuous cash losses. Assets of this division classified as held for sale (₹185.84 lakhs).

Manufacturing Facilities:

  • Spinning & Medical Textile Divisions at Aliabad, Medchal Taluq, Ranga Reddy Dist. - 500 078 Telangana

Capital Structure Impact

  • No change in share capital during the year
  • Equity shares: 4,908,576 shares of ₹10 each
  • Promoter holding: 62.97% (Rajender Kumar Agarwal 42.36%, Yamunadevi Agarwal 20.61%)

Corporate Governance

Board Composition:

  • 4 Directors (1 Executive, 3 Non-Executive)
  • Board met 5 times during FY26
  • Audit Committee met 4 times
  • Nomination & Remuneration Committee met 2 times
  • Stakeholders' Relationship Committee met 1 time

Key Changes:

  • Ms. Rajani Elaprolu Kumari appointed as Additional Director w.e.f. 13th August 2025
  • Ms. Sushma Gupta resigned w.e.f. 13th August 2025
  • Mr. Rishabh Jain resigned as Company Secretary w.e.f. 12.08.2026
  • Ms. Pratyansha Pandey appointed as Company Secretary w.e.f. 12.08.2026

Auditor Qualifications and Remarks

Statutory Auditors (K.S. Rao & Co.):

Qualified Opinion regarding:

  • Long-pending trade payables aggregating ₹205.39 lakhs where limitation period expired under Limitation Act, 1963
  • Lack of formal quotes from third parties for related party transactions

Secretarial Auditors (HSP & Associates LLP):

No qualifications but noted:

  • Statutory auditors' qualifications regarding unpaid statutory dues (TDS ₹1.38 lakhs) and long-pending payables (₹197.01 lakhs)
  • Delay in intimation of information/reports/certificates to Stock Exchange

Cash Flow Implications

  • Net cash from operations: ₹289.76 lakhs
  • Net cash from investing: ₹1.03 lakhs
  • Net cash used in financing: ₹(297.13) lakhs
  • Net decrease in cash: ₹(6.34) lakhs
  • Cash and cash equivalents at end: ₹2.11 lakhs

Voting Arrangements

  • Remote e-voting through NSDL/CDSL platforms
  • Cut-off date for voting: 18th September 2026
  • Scrutinizer: Shri B.V. Saravana Kumar, Practising Company Secretary
  • Ballot forms accepted until 29th September 2026, 5:00 PM