Date: 06/07/2026

Financial Results (Standalone & Consolidated)

Standalone Financial Results (FY26):

  • Turnover/Total Income: ₹15,404.40 lakhs
  • Total Expenditure: ₹15,592.46 lakhs
  • Net Loss: ₹118.15 lakhs
  • Earnings Per Share (EPS): (₹1.10)
  • Total Assets: ₹11,152.36 lakhs
  • Total Liabilities: ₹11,152.36 lakhs
  • Net Worth: ₹6,086.89 lakhs
  • Paid-up Equity Share Capital: ₹1,714.77 lakhs (Face Value ₹10 each)
  • Reserves: ₹4,372.12 lakhs

Consolidated Financial Results (FY26):

  • Turnover/Total Income: ₹15,404.58 lakhs
  • Total Expenditure: ₹15,595.38 lakhs
  • Net Loss: ₹120.06 lakhs
  • Earnings Per Share (EPS): (₹0.72)
  • Total Assets: ₹11,155.92 lakhs
  • Total Liabilities: ₹11,155.92 lakhs
  • Net Worth: ₹6,080.60 lakhs

Quarterly Performance (Q4 FY26 Standalone):

  • Net Loss: ₹143.13 lakhs
  • EPS: (₹1.16)

Type of Opinion: Qualified Opinion

Frequency: First-time qualifications

Basis for Qualified Opinion (Five Key Issues):

1. Inventory Valuation: Auditors unable to ascertain correctness of quantity, condition, and valuation of inventory worth approximately 30,000 kgs cotton bales. Management claims mutilated stock valued at 37% discount to cost, but auditors found no proper records or documentation.

2. Advance to Wholly Owned Subsidiary: Company advanced loan to Laxmi Spintex Private Limited without board approval or compliance with Companies Act, 2013 requirements (including Section 186). Management claims advance was squared off during FY26 with no outstanding balance.

3. Advance to Creditor: Significant advance given to creditor with indicators of financial stress in connected entities. No provision or impairment recognized under Ind AS 109. Management states recovery is "in process."

4. Sale of Land to Subsidiary: During previous FY, company recorded land sale to Laxmi Spintex Private Limited, but legal formalities for sale deed registration not completed as of March 31, 2026. Management states possession handed over awaiting stamp duty exemption certificate.

5. Expected Credit Loss (ECL) Provision: Company not assessed or recognized ECL provision on trade receivables outstanding over three years as required under Ind AS 109. Management states financial impact "not ascertainable."

Management vs Auditor Disagreement:

Management claims no financial impact for issues 1-4, but auditors strongly disagree:

  • Inventory: No evidence for 37% discount calculation or quantity verification
  • Subsidiary advance: Non-compliance not cured by subsequent squaring-off
  • Creditor advance: No assessment of recoverability or impairment
  • Land sale: Mere possession transfer doesn't constitute legal sale completion
  • ECL: Confirms understated expenses and overstated receivables/net worth

Board Meeting Outcomes

  • Audit Committee and Board of Directors approved financial results on May 22, 2026
  • Statutory Auditors carried out limited review of results

Other Operational Disclosures

  • Partial sale of plant and machinery undertaken during reporting period
  • Unamortized portion of related subsidy recognized in P&L
  • Company subscribed to memorandum of Laxmi Style & Design Private Ltd (wholly owned subsidiary) but share allotment pending
  • Financial results prepared in accordance with Ind AS and SEBI LODR Regulations

XBRL Filing Correction

Company clarified discrepancy in XBRL filing where FY26 EPS was mistakenly reported as (₹1.16) instead of correct (₹1.10), attributing this to inadvertent typographical error.