Jayatma Industries has recommended the re-appointment of M/S GMCA & Co., Chartered Accountants (Firm Registration No. 109850W), as its Statutory Auditors for a second consecutive term of five years. The Board of Directors approved the recommendation on August 11, 2026, stating that the appointment is necessary to fulfill requirements under Section 139 of the Companies Act, 2013 read with relevant rules. The proposed tenure commences from the conclusion of the ensuing Annual General Meeting for the Financial Year 2026–27 and extends until the conclusion of the Annual General Meeting to be held in 2031, subject to shareholder approval.

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as per SEBI Circular CIR/CFD/CMD/4/2015 dated September 9, 2015. Nirav Kalyanbhai Shah, CEO & Director of Jayatma Industries, signed the communication to BSE Limited. The firm’s re-appointment ensures continuity in financial oversight for the listed entity.

Auditor Profile

M/S GMCA & Co. was established in 1973 under the guidance of Senior Partner G. M. Shaikh. The firm possesses over 50 years of experience in auditing, taxation, and advisory services. It serves clients across diverse industries and maintains exposure as a Statutory Auditor for listed companies on both the BSE Main Board and SME Board.

The firm’s work exposure includes accounting and closure of books in SAP, preparation of financial statements, consolidation and reporting under IndAS, and management information systems (MIS). It also handles direct and indirect taxation matters. The firm is currently peer-reviewed and conversant with yearly results publication according to listing requirements.

Regulatory Context

The re-appointment process adheres to Para A of Part A of Schedule III read with Regulation 30 of the SEBI LODR Regulations. The Board’s decision aims to maintain regulatory compliance while leveraging the auditor’s long-standing familiarity with the company’s financial structures. Shareholders will vote on this resolution during the forthcoming Annual General Meeting.

What the Numbers Show

The selection of M/S GMCA & Co. for a second five-year term highlights Jayatma Industries’ preference for stability in its external audit function. With over five decades of operational history, the auditor brings established expertise in IndAS implementation and SEBI compliance, which are critical for listed entities navigating complex regulatory environments. This continuity may reduce transition risks associated with changing auditors mid-cycle.

Jayatma Industries Limited reported a widened net loss of ₹60.67 lakh for the first quarter ended June 30, 2026 (Q1FY26), compared to a net loss of ₹23.61 lakh in the corresponding period of the previous year. The deterioration in profitability was driven by a 23.4% year-on-year decline in revenue from operations, which stood at ₹270.51 lakh against ₹352.93 lakh in Q1FY25. This performance highlights continued pressure on the company’s wholesale trading business, where total expenses exceeded total income by ₹60.67 lakh, signaling persistent margin challenges in the textile and fabric segment.

The Board of Directors approved the standalone unaudited financial results on August 11, 2026, in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by M/s. GMCA & Co., Chartered Accountants, the company’s statutory auditors, who issued a limited review report stating that nothing came to their attention to suggest material misstatement. The financial statements were prepared in accordance with Ind AS 34 and Section 133 of the Companies Act, 2013.

Financial Performance Breakdown

Revenue from operations decreased sequentially as well, down from ₹294.35 lakh in Q4FY26. Other income remained relatively stable at ₹10.63 lakh, up slightly from ₹10.40 lakh in Q1FY25. However, cost pressures persisted, with purchase of stock-in-trade at ₹229.49 lakh and an increase in inventories contributing ₹32.40 lakh to expenses. Finance costs rose marginally to ₹21.43 lakh from ₹21.67 lakh in the previous year’s quarter, while employee benefits expense increased to ₹6.18 lakh from ₹4.63 lakh.

The basic earnings per share (EPS) declined to ₹-0.99 from ₹-0.38 in the same quarter last year. The company continues to operate in the wholesale trading of textiles, fabrics, yarn, household linen, articles of clothing, floor coverings, tapestry, and sports clothes. No exceptional items or discontinued operations were reported during the period.

Corporate Governance Updates

Alongside the financial results, the Board authorized the convening of the 42nd Annual General Meeting (AGM) for September 24, 2026, at 11:30 A.M. via Video Conferencing or other Audio-Visual Means. Mr. Chintan K. Patel, Practicing Company Secretary, was appointed as the scrutinizer for the e-voting process. The register of members and share transfer books will remain closed from September 18, 2026, to September 24, 2026, inclusive.

The Board also recommended the re-appointment of M/s. GMCA & Co., Chartered Accountants (FRN: 109850W), as statutory auditors for a second term of five years, subject to shareholder approval at the AGM. The auditors will hold office from the conclusion of the ensuing AGM until the conclusion of the AGM in 2031.

What the Numbers Show

The divergence between revenue decline (-23.4%) and expense reduction (-11.7%) highlights fixed-cost rigidity within Jayatma Industries’ trading model. While top-line pressure is evident, the inability to proportionally reduce operating expenses—particularly inventory-related costs and finance charges—has exacerbated the bottom-line impact. The widening loss suggests that current trading margins are insufficient to cover overheads, raising questions about volume recovery prospects in the textile wholesale segment.