Board approves Sept-quarter results, board rejig; auditor flags going-concern uncertainty
Board approved unaudited standalone results for the quarter and half year ended 30 Sept 2026.
By ScoutQuest · · 3 min read
- Net Loss (Half Year)
- Rs. (6.46) lakhs for the half year ended 30 September 2026
- Revenue from Operations
- no revenue from operations
- Net Worth
- Rs. 26.91 lakhs
Results approved
The Board met on 30 October 2026 and approved the unaudited standalone financial results for the quarter and half year ended 30 September 2026, along with the statement of assets and liabilities and the cash flow statement. The statutory auditors, Rao & Emmar, issued a limited review report on them.
The auditor's review conclusion
- The conclusion is unmodified: nothing came to the auditors' attention that suggested a material misstatement.
- The report separately sets out a "Material Uncertainty Related to Going Concern".
- The company did not earn any revenue from operations during the quarter or the half year. Total income for the half year was Rs. 1.43 lakhs, which is other operating income.
- Net Profit / Loss (-) for the period was Rs. (6.46) lakhs for the half year ended 30 September 2026.
- Accumulated losses left reserves and surplus at Rs. (1,353.09) lakhs against paid-up equity share capital of Rs. 1,380.00 lakhs, giving a net worth of Rs. 26.91 lakhs.
- The company is dependent on funding from related parties, with borrowings of Rs. 134.64 lakhs.
- The accounts are prepared on a going concern basis, citing continued financial support from promoters and related parties and their confirmation that loans will not be demanded back until the company can repay or resume operations.
What this means
The two items that carry the most weight for a reader are the going-concern wording and the fact that no revenue came from operations in the period. Together they describe a company that is not currently generating sales and whose net worth has been almost fully used up by losses, while it runs on money borrowed from related parties.
Other matters in the review report
- A long-pending dispute with Cotton Corporation of India Limited over cotton purchases and related claims is before the High Court of Karnataka. Execution proceedings were initiated against the company before the Commercial Court, Mysuru; the High Court granted an interim stay on 6 January 2026 and the matter is pending.
- The disputed balance of Rs. 639.23 lakhs is disclosed as a contingent liability, pending the final outcome.
- The auditors note that the Chief Financial Officer has not signed the statement.
Board changes
- Ms. Bhavna Agrawal appointed as an Additional Director in the Non-Executive Independent category for a term of five consecutive years from 29 October 2026 to 28 October 2031, subject to members' approval by special resolution.
- Mr. Prem Bharath Bist appointed as an Additional Director in the Non-Executive Non-Independent category with effect from 30 October 2026, liable to retire by rotation, subject to members' approval.
- Mr. Kolagunda Kumar Siddappa resigned as Non-Executive Non-Independent Director and Chairman with effect from the conclusion of the meeting on 30 October 2026, citing personal reasons.
- Ms. Sheela Arvind resigned as Independent Director and as Chairperson of the Audit Committee, the Nomination and Remuneration Committee and the Stakeholders' Relationship Committee, citing other professional commitments.
- The Board elected Mr. Prem Bharath Bist as Chairperson and reconstituted the three committees with effect from the conclusion of the meeting.
Other decisions
- The Board approved the Postal Ballot Notice seeking members' approval through remote e-voting only, for Ms. Agrawal's appointment by Special Resolution and Mr. Bist's appointment by Ordinary Resolution.
- The Board approved an amendment to the Related Party Transactions Policy in line with recent changes to Regulation 23 of the SEBI (LODR) Regulations, 2015 and SEBI's Industry Standards, adopted with immediate effect.
Also from Pasari Spinning Mills
Bhavna Agrawal appointed Additional Director (Non-Executive Independent) for 5 (Five) years
30 Oct 2026
Board meeting on 30 October 2026 to approve quarterly and half-yearly unaudited results
27 Oct 2026
More numbers
- Net Profit / Loss (-) for the half yearRs. 6.46 lakhs
- Total income, half year ended 30 Sept 2026 (standalone)1.43 lakhs
- Reserves and surplusRs. (1,353.09) lakhs
- Paid-up equity share capitalRs. 1,380.00 lakhs
- Net worth as at 30 September 2026Rs. 26.91 lakhs
- Borrowings from related partiesRs. 134.64 lakhs
- Disputed amount disclosed as contingent liabilityRs. 639.23 lakhs
- Term of Ms. Bhavna Agrawal as Independent Directorfive consecutive years
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