Katare Spinning Mills reported a net loss of ₹216.43 lakh for the financial year ended March 31, 2026, as its spinning division remained substantially non-operational for a prolonged period. The company's total income stood at ₹363.34 lakh, while total expenses were ₹520.40 lakh. The statutory auditor, G M Pawle and Associates, issued a qualified opinion on the financial statements, highlighting material uncertainty regarding the company's ability to continue as a going concern.

The Board of Directors approved the audited financial results for the quarter and year ended March 31, 2026, at a meeting held on May 30, 2026. The filing was made pursuant to Regulation 33 of the SEBI (LODR) Regulations, 2015. The company's spinning division has not carried on substantial manufacturing operations, leading to continuous net losses and accumulated losses.

Auditors noted that the company carries a Net Deferred Tax Liability of ₹78.87 lakh as of March 31, 2026, an increase from ₹19.80 lakh in the previous year. Management stated that Deferred Tax Assets relating to carried forward financial losses and unabsorbed depreciation were not recognized due to the absence of virtual certainty regarding future taxable income. Furthermore, the company has not completed a comprehensive impairment testing of its Property, Plant, and Equipment under Ind AS 36, preventing auditors from commenting on the recoverability of these assets.

In a significant disclosure, the auditors issued an adverse opinion on the company's internal financial controls over financial reporting as of March 31, 2026. The report identified material weaknesses, including the failure to identify and record necessary valuation adjustments for Property, Plant, and Equipment despite prolonged manufacturing suspension. The company also lacked a control operating workflow to evaluate long-term impairment indicators and deferred tax balances effectively.

The financial statements also revealed that the company has incurred cash losses during the current financial year as well as the immediately preceding financial year. The Board of Directors did not propose a dividend for the year. The company operates in multiple business segments, including cotton yarn manufacturing and solar power generation.

Financial Performance for FY26

Katare Spinning Mills Limited has announced that its board of directors will meet on Saturday, May 30, 2026, to discuss the company's financial performance. The meeting is scheduled to take place at 4:30 p.m. at the registered office located in Solapur.

Agenda for the Meeting

The primary agenda for the board meeting is to consider the audited standalone financial results of the company. Specifically, the directors will review the financials for the quarter and the fiscal year ended on March 31, 2026. This disclosure is being made in compliance with Regulation 29 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Trading Window Closure

In conjunction with the board meeting, the company has informed the stock exchanges about the closure of the trading window. This restriction applies to all promoters, directors, officers, and designated persons of the company, as well as their immediate relatives. The window will remain closed to ensure compliance with regulatory norms regarding insider trading.

Key Dates and Details

The intimation was addressed to the Manager of the Compliance Department at the Bombay Stock Exchange Limited, where the company is listed under the scrip code 502933.