Pasari Spinning Mills Ltd

Key board decisions

• Approved quarterly unaudited standalone financial results for quarter ended 30 June 2026 with Limited Review Report.
• Appointed Mr. Rayaluru Venkatapathi, cost accountant, as Internal Auditor.

Regulatory and audit matters

• Ongoing dispute with Cotton Corporation of India; contingent liability Rs. 639.23 Lakhs disclosed.
• Arbitration before Karnataka High Court; interim stay on related execution proceedings.
• CFO signature missing on the Statement; auditor notes governance-related matter.
• Statement excludes balance sheet items and cash flows; to be submitted with annual/half-year results.

Dematerialisation status

• Securities dematerialised during the period were processed; demat certificates mutilated and cancelled after verification.
• Depository name substituted as registered owner in records within the prescribed timeline.
• Details of dematerialised/rematerialised securities furnished to all stock exchanges where listed.

Financial results

• Board approved audited standalone financial results for quarter and year ended 31 March 2026.
• Auditor issued an unmodified opinion on the standalone results.

Performance

• Quarter ended 31 March 2026 showed loss of Rs 5.52 lakhs.
• Year ended 31 March 2026 profit was Rs 27.96 lakhs.
• Other operating income for the year was Rs 17.06 lakhs.

Balance sheet and cash flow

• Total assets stood at Rs 258.26 lakhs as at 31 March 2026.
• Cash and cash equivalents closed at Rs 14.47 lakhs.
• Net cash outflow during the year was Rs 6.57 lakhs.

Regulatory and legal matters

• Ongoing dispute with Cotton Corporation of India remains pending before Karnataka High Court.
• Execution proceedings were stayed; contingent liability of Rs 639.23 lakhs was disclosed.
• Property tax provision of Rs 18.87 lakhs was recognised for unpaid taxes since FY 2019-20.

Audit observations

• Auditor highlighted material uncertainty related to going concern due to the CCI dispute.
• Auditor noted no revaluation of investment properties during the year.
• Auditor observed the CFO had not signed the financial statements.

Other disclosures

• Rental income reduction drove the lower profit for the year.
• Company settled Rs 50.00 lakhs of dues to related party Pasari Exports Limited.

Financial Performance

• Board approved unaudited standalone results for quarter ended 31 Dec 2025 with limited review report.
• Profit before tax was Rs. 850 lakh for the quarter and Rs. 2,670 lakh for nine months ended 31 Dec 2025.
• Earnings per share (basic) were Rs. 0.06 for the quarter and Rs. 0.21 for nine months ended 31 Dec 2025.
• No extraordinary or exceptional items reported for the quarter ended 31 Dec 2025.

Auditor Remarks ️

• Auditor’s limited review report expressed unmodified conclusion with no material misstatements.
• Auditor highlighted non-disclosure of related party loan repayments of Rs. 10 lakh (quarter) and Rs. 50 lakh (nine months).
• Auditor drew attention to pending litigation involving Rs. 7.03 crore execution petition and Rs. 0.64 crore provision.

Regulatory Compliance

• Board noted and approved fine imposed by BSE for delayed submission of cash flow statement under Regulation 33.
• Board acknowledged fine payment and advised strict future adherence to regulatory filing timelines.

🗓️ Meeting Details

• Board meeting scheduled on 12 February 2026 at 3:00 PM, Bangalore registered office.

📍 Key Agenda Items

• Approval of quarterly unaudited financial results and Limited Review Report for quarter ended 31 December 2025.