Shree Rama Newsprint Ltd

Financials

• Revenue from operations for Q1 FY27: ₹972.16 lakhs.
• Total Income: ₹1,138.83 lakhs in Q1 FY27.
• Profit after tax from continuing operations: ₹-938.18 lakhs.
• Profit after tax from discontinued operations: ₹-111.73 lakhs.
• Total comprehensive income for the period: ₹-1,047.88 lakhs.
• Impairment on discontinued Paper Division assets: ₹2,784.33 lakhs.
• Going concern risk: current liabilities exceed current assets by ₹12,625.97 lakhs.
• Paper Division discontinued; Water Bottle division is the sole operating segment; segment reporting not applicable.
• Earnings per share - continuing operations: ₹-0.64; discontinued: ₹-0.08; combined: ₹-0.72.

Corporate actions & disclosures

• AGM scheduled for 25 September 2026; e-voting cut-off on 18 September 2026.

Meeting Details

• Board meeting scheduled on 13 August 2026; time and venue not disclosed.

Key Agenda Items

• To consider and approve the unaudited financial results for the quarter ended 30 June 2026.

Other Notes

• Trading window closed for all Designated Persons from 1 July 2026 until 48 hours after results declaration.

Purpose

• Postal ballot to approve a Special Resolution for governance action.

Resolutions

• Special Resolution: Appointment of Mr. Alok Jain as Independent Director.

Outcome

• Approved; in-favour 12 votes, against 1; abstentions Nil.

Impact

• Adds independent director to the board; term not disclosed.

Director profile

• Mr. Alok Jain, DIN 06950769, Independent Director.

Shree Rama Newsprint Ltd — Trading Window closed from 1 July 2026; will reopen on expiry of 48 hours after public announcement of Un-Audited Financial Results of the Company for the Quarter ended on 30th June 2026 (both days inclusive).

Board appointment

• Mr. Alok Jain appointed Additional Director as Non-Executive Independent Director effective 25 May 2026.
• First term is five consecutive years, subject to member approval by special resolution or postal ballot.
• He has over 32 years' cross-functional experience across corporate and academic sectors.
• He is currently a director at Panchariya Semicon Private Limited.
• He is not related to any company directors and holds no company shareholding.

Auditor report

• Batliboi & Purohit, Chartered Accountants, issued the statutory auditor's report on audited results.
• The report expressed an unmodified opinion on the quarter and year ended 31 March 2026.
• Auditors highlighted material uncertainty over going concern due to losses and negative working capital.
• They also noted further impairment loss of Rs. 2,784.33 lakhs on discontinued paper division assets.

Financial and governance impact

• Board approved audited financial results on 25 May 2026.
• Paper division remains discontinued; water bottle division is the only operating segment.
• Company reported total comprehensive loss of Rs. 6,853.02 lakhs for FY2026.
• Current liabilities exceeded current assets by Rs. 12,152.60 lakhs, indicating going-concern uncertainty.

Q4 and FY26 results

• 📊 Q4 FY26 revenue from operations fell 30.6% YoY to ₹787.10 lakh.
• 📊 Q4 FY26 total income declined 22.0% YoY to ₹996.47 lakh.
• 📊 Q4 FY26 loss before tax widened to ₹992.68 lakh from ₹664.43 lakh.
• 📊 Q4 FY26 loss after tax was ₹992.68 lakh, versus ₹664.43 lakh last year.
• 📊 FY26 revenue from operations declined 25.9% YoY to ₹3,271.86 lakh.
• 📊 FY26 total income fell 18.8% YoY to ₹3,963.43 lakh.
• 📊 FY26 loss before tax was ₹3,394.94 lakh, versus ₹2,861.39 lakh last year.
• 📊 FY26 loss after tax was ₹3,394.94 lakh, versus ₹2,861.39 lakh last year.
• 📊 FY26 total comprehensive loss widened to ₹6,853.02 lakh from ₹10,627.76 lakh.
• 📊 FY26 basic and diluted EPS was negative ₹2.30, versus negative ₹1.94 last year.

Cost trends

• 📊 FY26 raw material and packing material cost was ₹1,707.59 lakh, down 19.3% YoY.
• 📊 FY26 employee benefit expense fell 16.8% YoY to ₹121.51 lakh.
• 📊 FY26 finance costs rose 2.2% YoY to ₹3,690.96 lakh.
• 📊 FY26 other expenses increased 22.5% YoY to ₹1,432.26 lakh.
• 📊 Q4 FY26 other expenses jumped to ₹518.54 lakh from ₹304.82 lakh sequentially.

Discontinued operations

• 📊 FY26 discontinued operations loss before tax was ₹3,458.56 lakh, versus ₹7,767.30 lakh last year.
• 📊 Q4 FY26 discontinued operations loss before tax was ₹2,798.53 lakh.
• 📊 The company recognised a further impairment loss of ₹2,784.33 lakh on Paper Division assets.
• 📊 Paper Division remains classified as discontinued operations and is being sold piecemeal.

Balance sheet and cash

• 📊 Cash and cash equivalents rose to ₹99.27 lakh at 31 March 2026 from ₹5.07 lakh.
• 📊 Current liabilities exceeded current assets by ₹12,152.60 lakh at 31 March 2026.
• 📊 Borrowings stood at ₹37,627.22 lakh, including ₹35,000.00 lakh current borrowings.
• 📊 Other equity remained negative at ₹23,015.02 lakh at 31 March 2026.

Audit and governance

• 📍 Statutory auditors issued an unmodified opinion on the audited results.
• ⚠️ Auditors highlighted material uncertainty over going concern due to losses and negative working capital.
• 📍 The board appointed Alok Jain as additional non-executive independent director for five years.
• 📍 The board approved a postal ballot notice for member approval.

Business model

• 🗒️ The company now reports one operating segment: water bottle division.
• 🗒️ Paper Division is discontinued and its assets and liabilities are separately presented.

Financial results

• Board approved audited financial results for quarter and year ended 31 March 2026.
• Results covered standalone continuing and discontinued operations, with balance sheet and cash flow approved.
• Statutory auditors issued an unmodified opinion on the audited results.

Key financials

• Year ended 31 March 2026 total comprehensive loss was Rs 6,853.02 lakh.
• Year ended 31 March 2026 revenue from operations was Rs 3,271.86 lakh.
• Current liabilities exceeded current assets by Rs 12,152.60 lakh, indicating going-concern uncertainty.

Auditor remarks

• Auditors highlighted material uncertainty related to going concern.
• Auditors noted further impairment loss of Rs 2,784.33 lakh on discontinued Paper Division assets.

Director appointment

• Mr. Alok Jain appointed Additional Non-Executive Independent Director effective 25 May 2026.
• First term is five years, subject to shareholder approval by special resolution or postal ballot.

Other board actions

• Board approved notice of postal ballot for shareholder business.
• Paper Division remains classified as discontinued operations, with assets being sold piecemeal.

Meeting Details

• Board meeting scheduled for 19 May 2026.
• Time and location were not disclosed.

Key Agenda Items

• Consider and approve audited financial results for quarter and year ended 31 March 2026.

Other Notes

• Trading window closed from 1 April 2026 until 48 hours after results declaration.