Advance Syntex Limited reported a standalone loss of ₹1.00 lakh for the quarter ended June 30, 2026, with zero revenue from operations. The Vadodara-based textile firm has scheduled its 37th Annual General Meeting for September 30, 2026.

The company’s statutory auditors issued an adverse opinion on the financial statements, citing significant going concern risks and deviations from Indian Accounting Standards (Ind AS). The Register of Members and Share Transfer Books will remain closed from September 23 to September 30, 2026, for the purpose of the meeting.

Financial Performance

The company generated no revenue from operations or other income during the quarter. Total expenses stood at ₹1.00 lakh, primarily driven by other expenses. This marks a slight improvement from the ₹1.41 lakh loss reported in the preceding quarter. For the full fiscal year ended March 31, 2026, the company posted a comprehensive loss of ₹60.34 lakh.

The loss per share stood at ₹0.01, compared to nil in the same quarter last year. Total comprehensive income for the period was negative ₹1.00 lakh.

Auditor Concerns and Going Worth Risks

VRAJM & Associates, the statutory auditors, highlighted multiple critical issues in their limited review report. They stated that the business activity is closed and the "going concern" assumption is no longer sustainable. Consequently, the company has not followed Ind AS fully.

Key concerns raised by the auditors include:

• Asset Liquidation: Axis Bank sold all fixed assets and stock under the SARFAESI Act, 2002. The fixed asset block is now zero. The company received ₹4.54 crore for land and buildings against a book value of ₹1.23 crore, and ₹66 lakh for plant and inventory against a book value of ₹2.18 crore.
• NPA Status: Lender banks have classified the company’s dues as Non-Performing Assets (NPAs). Interest charging has stopped per RBI norms, leading to understated finance costs and liabilities.
• Provisioning Gaps: Management provided only partial provisions for trade receivables despite Ind AS 109 requirements for 100% provision on non-recoverable amounts. This has resulted in an understatement of total comprehensive loss.
• Unpaid Dividend: A dividend of ₹20,265 due for transfer to the Investor Education and Protection Fund (IEPF) on August 3, 2025, remains untransferred.

What the Numbers Show

The divergence between the modest quarterly loss of ₹1.00 lakh and the auditor’s warning of understated liabilities reveals a structural disconnect in the financial reporting. With zero revenue and zero fixed assets, the company’s continued existence relies entirely on resolving historical NPA dues and receivable recoveries. The absence of employee benefit expenses and finance costs—due to NPA classification—artificially compresses the current period’s loss, masking the true scale of accumulated liabilities that remain subject to reconciliation.

Corporate Actions

The Board of Directors approved the standalone unaudited financial results and scheduled the 37th Annual General Meeting for September 30, 2026, at 2:00 pm at the Registered Office. Mr. Devesh R. Desai was appointed as the scrutinizer for e-voting.

Advance Syntex Limited has announced its audited financial results for the year ended March 31, 2026. The Board of Directors adopted the audited financial statements during a meeting held on May 21, 2026. The company reported a total comprehensive loss of ₹60.34 lakh for the year, a significant reduction compared to a loss of ₹1,841.56 lakh in the previous year.

Financial Performance

The company's revenue from operations stood at nil for the quarter and year ended March 31, 2026. Other income for the year was reported at ₹14.97 lakh. Total expenses for the year amounted to ₹75.31 lakh, a decrease from ₹39.29 lakh in the prior year. The company reported a basic and diluted earnings per share (EPS) of (₹0.54) for the year.

Balance Sheet Highlights

The total assets of the company decreased to ₹1,250.01 lakh as of March 31, 2026, from ₹1,342.21 lakh in the previous year. Total equity stood at a negative ₹1,302.32 lakh, indicating a negative net worth. Total liabilities were reported at ₹1,250.01 lakh, comprising non-current liabilities of ₹687.84 lakh and current liabilities of ₹1,864.49 lakh.

Auditor's Report

VRAJM & Associates, Chartered Accountants, issued an adverse opinion on the financial results. The auditors noted that the business activity is closed and the "going concern" assumption is not sustainable. Consequently, the company has not followed Indian Accounting Standards (IndAS). The report also highlighted that the lender bank sold fixed assets and stock under the SARFAESI Act, 2002, but did not provide separate information for specific asset categories, leading to entries based on available information. Additionally, the auditors stated that trade receivables require impairment and that total comprehensive loss is understated.