Deccan Polypacks Limited reported a net loss of ₹35.81 lakh for the financial year ended March 31, 2026, a reversal from the net profit of ₹90.52 lakh recorded in the previous year. The company's Board of Directors approved the audited financial results for the year and quarter ended March 31, 2026, during a meeting held on May 29, 2026. The statutory auditors issued an unmodified opinion on the annual audited financial results and the auditor's report.

The financial performance was impacted by a rise in total expenses, which increased to ₹35.81 lakh in FY26 from ₹21.44 lakh in FY25. Employee benefits expense stood at ₹3.17 lakh, while finance costs were recorded at ₹0.01 lakh. Other expenses rose to ₹32.64 lakh from ₹21.43 lakh in the prior year. Income from discontinued operations was nil for the year, compared to ₹111.97 lakh in FY25, which was entirely derived from other income.

Financial Performance

The company's earnings per share (EPS) for the year stood at -1.69, basic and diluted, a decline from 4.28 in the previous year. The statement of profit and loss indicated that the company did not generate any revenue from operations or income from discontinued operations during the current financial year. The total comprehensive income for the period reflected the net loss of ₹35.81 lakh.

Balance Sheet and Cash Flows

The balance sheet as of March 31, 2026, showed total assets at ₹4.88 lakh, a decrease from ₹14.41 lakh in the previous year. Equity share capital remained constant at ₹211.50 lakh, while other equity turned negative at ₹1,575.66 lakh, resulting in a total equity deficit of ₹1,364.16 lakh. Long-term borrowings surged to ₹1,367.87 lakh from ₹8.00 lakh in FY25.

Cash and cash equivalents decreased significantly to ₹1.48 lakh from ₹11.00 lakh at the end of the previous year. The cash flow statement revealed a net decrease in cash and cash equivalents of ₹9.52 lakh for the year. Cash generated from operations was negative at ₹35.52 lakh, while net cash from financing activities was ₹26.00 lakh, driven by an increase in long-term borrowings.

Auditor's Report

GMK Associates, the statutory auditors, provided an unmodified opinion on the standalone financial statements. The report included an emphasis of matter regarding the preparation of Ind AS financial statements on a realizable value basis and the absence of confirmation of balances. The auditors stated that the impact of these matters could not be determined at the time of the report. The audit was conducted in accordance with the Standards on Auditing specified under the Companies Act, 2013.

Deccan Polypacks Limited reported a net loss of ₹35.81 lakh for the financial year ended March 31, 2026, reversing the profit of ₹90.52 lakh recorded in the previous year. The company's total assets contracted significantly to ₹4.88 lakh from ₹14.41 lakh as of March 31, 2025, driven primarily by a depletion in cash and cash equivalents. The statutory auditors issued an unmodified opinion on the annual audited financial results, which were approved by the board on May 29, 2026.

The financial performance for FY26 reflects a total expense of ₹35.81 lakh, up from ₹21.44 lakh in the prior year, with no income recorded from discontinued operations during the current period. In contrast, the previous year saw an other income of ₹111.97 lakh. The company reported a basic and diluted loss per share of ₹1.69 for FY26, compared to earnings per share of ₹4.28 in FY25.

Financial Position

The balance sheet data highlights a shift in the company's capital structure and asset composition. Long-term borrowings increased sharply to ₹1,367.87 lakh as of March 31, 2026, from ₹8.00 lakh in the previous year. Conversely, cash and cash equivalents dropped to ₹1.48 lakh from ₹11.00 lakh over the same period.

Cash Flow Analysis

The company's net cash flow from operating activities remained negative at ₹35.52 lakh for the year ended March 31, 2026, compared to a negative outflow of ₹21.44 lakh in the previous year. Financing activities provided a net inflow of ₹26.00 lakh, primarily driven by an increase in long-term borrowings. Consequently, the closing balance of cash and cash equivalents stood at ₹1.48 lakh, down from an opening balance of ₹11.00 lakh.

Auditor's Report

GMK Associates, Chartered Accountants, provided an independent auditor's report stating that the financial statements give a true and fair view of the state of affairs of the company as at March 31, 2026. The report included an emphasis of matter regarding notes to the Ind AS financial statements concerning preparation on a realizable value basis and the absence of confirmation of balances. The auditors noted that the impact of these uncertainties could not be determined at the time of reporting.

Regulatory Disclosures

The financial results were published in the newspapers Business Standard and Prajasakthi on May 30, 2026. The company confirmed that it has suspended its manufacturing operations and sold its land, building, and manufacturing facilities. Due to the absence of a final action plan for the company's affairs and operations, the financial statements were not prepared on a going concern basis but rather on a realizable value basis.