Soma Textiles & Industries Ltd. Regulatory Clarification Response
Date of Communication: 25th June, 2026
Nature of Query: The National Stock Exchange of India Ltd (NSE) sought clarification via email dated June 25, 2026 regarding two specific issues:
1. The delay in submission of the Outcome of Board Meeting containing financial results
2. The identical figures appearing in both the Standalone and Consolidated Financial Results for the quarter ended 31st March, 2026, which were submitted to the Exchange on 30th May, 2026
Company's Clarification on Filing Delay
The Board Meeting concluded at 5:40 PM on May 30, 2026. The company attempted to submit the financial results within the stipulated 3-hour timeframe under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 but encountered technical issues on the portal that prevented completion within the prescribed timeline.
The company immediately communicated the issue to the NSE via email within the specified timeline, providing:
- A signed copy of the Financial Results
- Screenshot evidence of the portal error encountered during upload attempt
- Email communications regarding the technical difficulty
The company assures the Exchange of its commitment to full compliance with all applicable SEBI and NSE regulations and promises to take necessary steps to avoid such occurrences in the future.
Details of Financial Results Clarification
The company explains that the Consolidated Financial Results are identical to the Standalone Financial Results due to the accounting treatment of its investment in Soma Textile FZC, an associate company:
Investment Details:
- Associate Company: Soma Textile FZC
- Country of Incorporation: Outside India
- Shareholding: 40% held by Soma Textiles & Industries Limited
- Consolidation Status: Accounted for as an Associate under Indian Accounting Standards 28 'Investment in Associates and Joint Ventures'
Accounting Treatment:
- The investment is accounted for using the Equity Method
- As of the reporting date (March 31, 2026), the Group's share of accumulated losses in the associate exceeds the carrying amount of its investment
- The carrying value of the investment has been reduced to Nil
- The Group has discontinued recognizing its share of further losses as required under applicable accounting standards
- Subsequent losses will not be recognized unless the Group has incurred legal or constructive obligations or made payments on behalf of the associate
- The Group will resume recognizing its share of profits only after such profits equal the cumulative share of previously unrecognized losses
Result Impact: Since the investment in the associate stands fully impaired, there is no impact on the Consolidated Financial Results, making them identical to the Standalone Financial Results.
Regulatory Compliance Reference
The company references compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 regarding the timeline for submitting financial results after board meetings. The response demonstrates the company's awareness of regulatory requirements and its efforts to maintain compliance despite technical challenges.
Topic Tags: Regulatory Response, Financial Results Clarification, Accounting Treatment, Associate Company, SEBI Compliance, Technical Filing Issues