Sri Lakshmi Saraswathi Textiles Arni Ltd

Subject and period

• Integrated quarterly financials for quarter ended June 30, 2026 submitted.
• Auditors cite going concern uncertainty due to losses and negative net worth.
• Audit qualifications note impact of qualifications in Annexure-2.

Financial position and net worth

• Paid-up capital Rs 3.33 Cr; actual net worth negative Rs 85.10 Cr.
• Revaluation reserve Rs 210.71 Cr included; not in net worth.
• No outstanding defaults on loans or debt securities as of June 30, 2026.

Statutory dues and compliance

• EPF dues Rs 149.10 Lakh outstanding; ESI Rs 5.24 Lakh; penalties provision.
• TDS/TCS outstanding Rs 22.83 Lakh; interest provision Rs 2.47 Lakh.
• Management states PF/ESI arrears will be regularised from current quarter.

Outlook and governance

• Management expects cash flow and turnover uplift from cost controls and FTAs.
• Going concern basis maintained; emphasis of matter noted but no opinion modification.
• No governance changes disclosed.

Q1 FY2026-27 highlights & auditor notes

• Board approved unaudited Q1 FY2026-27 results for quarter ended June 30, 2026.
• Auditors flag going concern due to accumulated losses of Rs 10,514.05 lakhs.
• Q1 loss Rs 551.84 lakhs; company remains with negative net worth.
• Statutory dues outstanding: ESI 5.24 lakhs; EPF 149.10 lakhs; TDS/TCS 22.83 lakhs.
• Interest provisions created; principal EPF/TDS amounts remain unpaid.
• Garment division commenced operations; PF/ESI payments to be regularised from current quarter.
• Emphasis of matter: long-outstanding capital advances Rs 21.40 lakhs and Rs 13.18 lakhs.
• Management expects cash flows and turnover uplift from FTAs with EU/USA.
• Outlook: FTAs and Budget 2026 expected to boost FY2026-27 turnover.
• Auditors' opinion not modified despite matters.

Book closure details

• Book closure: Aug 20, 2026 to Aug 26, 2026 (inclusive) for equity shares.
• Purpose: 62nd AGM.
• Record Date: Not Applicable.
• Security: Equity shares.

Financial performance

• Total income Rs 8,814.10 L, down from prior year.
• Total expenses Rs 10,468.11 L, down from prior year.
• Loss before tax Rs -1,574.43 L.
• Total comprehensive income Rs 19,696.35 L, aided by asset revaluation.
• Earnings per share: basic and diluted Rs -47.24.

Operations & production

• Production 41.90 lakh kg; sales 41.78 lakh kg.
• Revenue from operations Rs 8,727.79 L; down from Rs 9,948.58 L.
• Dividends not declared due to accumulated losses.
• Fixed assets revalued; MOA amendment planned to monetize lands.

Capital & liquidity

• Total equity Rs 12,894.42 L; revaluation reserve Rs 21,071.20 L.
• Retained earnings Rs -10,514.05 L; cash Rs 2.05 L.
• Current borrowings: secured Rs 2,880.28 L and unsecured Rs 2,430.80 L.
• Non-current borrowings Rs 557.94 L.

Governance & AGM

• AGM scheduled Aug 26, 2026 via VC/OAVM.
• MOA amendment for real estate objects; Special Resolution.
• Cost Auditor remuneration for 2026-27: Rs 80,000 plus expenses.

Related party transactions

• Payments to Directors: Umaa Sharavani 2.18 L; Sridhara Rao 2.18 L; Sivarani J 1.99 L.
• Total KMP remuneration 2025-26: Balakrishna S 46.46 L; Padmanaban 31.38 L.
• Loans from KMP: Padmanaban Rs 2,362.20 L; Balakrishna Rs 68.60 L.

CSR & ESG

• CSR expenditures: Nil; CSR policy/committee in place; policy on website.

Audit & going concern

• Going concern: auditor notes material uncertainty due to eroded net worth and three-year losses.
• Demerger: equity shareholders did not approve; NCLT petition filed.
• Statutory dues outstanding: ESI 4.71 L; EPF 124.78 L; TDS 24.47 L; GST 6.75 L.

Outlook & risks

• Outlook: textile industry turmoil; potential recovery from policy changes and better raw material pricing.
• Strategy: monetize lands via MOA amendments to improve liquidity.

AGM Details

• AGM on 26 August 2026 at 02:30 PM IST via VC/OAVM.
• Register of Members and transfer books closed from 20 to 26 August 2026.

Resolutions

• Ordinary: Receive and adopt Audited Financial Statements for year ended 31 March 2026.
• Ordinary: Re-appoint Sri R. Padmanaban (DIN 00084579) who retires by rotation.
• Special: Amend MOA to add real estate and construction activities.
• Ordinary: Ratify cost auditor remuneration of Rs 80,000 for 2026-27.

Director Changes

• Re-appointment of Sri R. Padmanaban as Director (retiring by rotation).

Details furnished to stock exchanges

• Details of securities dematerialized/rematerialized during the period were furnished to all stock exchanges where the shares are listed.