Financial Analyst Summary: Borana Weaves Limited Regulatory Compliance Response

NSE Symbol: BORANA

Date and Nature of Communication

Borana Weaves Limited submitted a clarification letter to the National Stock Exchange of India Limited on June 17, 2026, addressing deficiencies observed in their financial results submission for the year ended March 31, 2026.

Company's Clarification on Deficiencies

The company acknowledged three specific deficiencies in their original submission:

1. Standalone Auditor's Report Omission: The Standalone Auditor's Report was inadvertently not attached due to an administrative oversight. The report was submitted along with this clarification letter.

2. Financial Results Format Issue: The financial results were not submitted in the format prescribed under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company revised and realigned the financial results with the prescribed format.

3. Missing Unmodified Audit Opinion Declaration: The declaration pursuant to Regulation 33(3)(d) of SEBI (LODR) Regulations, 2015, confirming that statutory auditors issued an unmodified audit opinion, was inadvertently omitted. This declaration was enclosed with the response.

Regulatory Compliance Reference

The company specifically referenced compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The declaration submitted confirms that the audit report issued by statutory auditor KSA & Co. (Firm Registration Number: 03822C) on the annual audited standalone financial results for the year ended March 31, 2026, contains an Unmodified Opinion.

Financial Results Details

The audited standalone financial results show significant performance improvements:

Balance Sheet Highlights (as at March 31, 2026 vs March 31, 2025):

  • Total Assets: ₹36.64 crore (vs ₹15.59 crore)
  • Property, plant and equipment: ₹14.65 crore (vs ₹6.64 crore)
  • Inventories: ₹4.73 crore (vs ₹2.54 crore)
  • Total Equity: ₹28.16 crore (vs ₹8.75 crore)
  • Equity share capital: ₹2.66 crore (vs ₹1.99 crore)
  • Borrowings: ₹6.95 crore (vs ₹5.90 crore)

Profit & Loss Statement (Year Ended March 31, 2026):

  • Total Income: ₹10.24 crore
  • Total Expenses: ₹8.15 crore
  • Profit before tax: ₹7.84 crore
  • Total tax expenses: ₹1.38 crore
  • Profit for the period: ₹6.46 crore
  • Basic and diluted EPS: ₹24.35

Cash Flow Statement (Year Ended March 31, 2026):

  • Net cash from operating activities: ₹3.70 crore
  • Net cash used in investing activities: ₹(17.87) crore (primarily purchase of property, plant and equipment)
  • Net cash from financing activities: ₹14.34 crore (including IPO proceeds of ₹13.66 crore)

Management Assurance and Controls

The company assured the exchange of its commitment to maintaining accuracy and compliance with all applicable regulatory requirements, stating that necessary controls are being strengthened to avoid such discrepancies going forward.

Signatories:

  • Ankur Mangilal Borana, Executive Director and Chief Executive Officer (DIN: 01091164)
  • Rajkumar Mangilal Borana, Chief Financial Officer/Director (DIN: 01091166)
  • Mangilal Ambalal Borana, Chairman/Managing Director (DIN: 01091167)

Auditor: KSA & Co., Chartered Accountants (Firm Registration No: 003822C), represented by CA Arun Kanodiya (Membership No: 077131)

Topic Tags: Regulatory Response, Financial Results Clarification, Compliance, SEBI LODR Regulations, Audit Opinion Declaration