SEL Manufacturing Company Ltd

Resignation of Dharminder Pal (NED)

• Resigns as Non-Executive Non-Independent Director; effective 07 Aug 2026; ceases from Audit, Nomination & Remuneration, Risk Management Committees.

Financial results and governance

• Board approved unaudited quarterly results for the quarter ended 30 June 2026.
• Limited Review Report on the results was approved.
• Board approved Board's Report and Corporate Governance Report for FY2025-26.
• 26th AGM scheduled for 30 September 2026 at 11:00 AM IST via VC.

Regulatory and going concern disclosures

• Corporate Insolvency Resolution Process under IBC; interim moratorium granted by NCLT Chandigarh until next hearing.
• Independent auditor issued a qualified opinion due to impairment testing not performed per Ind AS 36.
• Material going-concern uncertainty amid liquidity stress and failure to service repayments.

Operational and listing matters

• Note highlights accumulated losses and high debt; major plants shut during the period.
• AGM and annual report for year ended 31 March 2026 will be dispatched separately.

Dematerialisation status

• Dematerialisation requests were processed and confirmed to the depositories.
• Dematerialised securities were listed on exchanges where existing securities are listed.
• Physical certificates were mutilated and cancelled after verification; depository name substituted as registered owner within prescribed timelines.

Financial Performance

• Board approved unaudited standalone financial results for quarter ended 31 December 2025.
• Total income from operations was Rs. 209.49 lakhs for the quarter.
• Net loss for the quarter was Rs. 4,074.91 lakhs; year-to-date loss Rs. 12,601.23 lakhs.
• Earnings per share (EPS) for the quarter was a loss of Rs. 12.30 (basic and diluted).

Auditor Remarks ️

• Qualified opinion due to no impairment testing on Property, Plant & Equipment and Capital Work in Progress.
• Material uncertainty on going concern due to continuous losses, liquidity stress, and debt repayment defaults.
• Cumulative losses of Rs. 76,691 lakhs and outstanding debt obligations of Rs. 18,743 lakhs for FY 2025-26.
• Defaults on installments of Rs. 26,186 lakhs and interest dues of Rs. 17,105 lakhs from Sept 2023 to Dec 2025.
• Interim moratorium granted by NCLT on payments pending bank compliance on declassification.

Board Decisions & Disclosures

• Company operating under financial distress; major plants shut; shifted to job work operations.
• Corporate Insolvency Resolution Process initiated; resolution plan approved and implemented in FY 2020-21.
• Company unable to infuse Rs. 4,000 lakhs working capital as per resolution plan.
• Application filed with NCLT regarding banks not declassifying company as defaulter.
• No impairment loss recognized despite non-operational assets; depreciation charged on shut units.
• Adoption of new labor codes effective November 2025 considered; impact on employee benefits to be evaluated.

Governance & Compliance

• Shareholders passed resolution for initiation of Corporate Insolvency Resolution Process in October 2023 EGM.
• Segment reporting not applicable; company has only one reportable segment: Textiles.

🗓️ Meeting Details

• Board meeting scheduled for 7 February 2026.

📊 Financial Performance

• Approval of unaudited financial results for the quarter ended 31 December 2025.