Laxmi Cotspin Limited has announced its audited standalone and consolidated financial results for the quarter and financial year ended March 31, 2026. The Board of Directors approved the results during its meeting held on May 22, 2026, at the company's registered office. The meeting was originally scheduled for May 19, 2026, but was adjourned due to unavoidable circumstances.

Financial Performance

For the financial year ended March 31, 2026, the company reported a net loss of ₹117.86 lakh on a consolidated basis, compared to a net profit of ₹47.60 lakh in the previous year. Revenue from operations for the year stood at ₹15,067.21 lakh, slightly higher than the ₹15,041.56 lakh recorded in the previous year. Total income for the year was ₹15,404.58 lakh.

For the quarter ended March 31, 2026, the company reported a net loss of ₹141.42 lakh. Revenue from operations for the quarter was ₹1,727.53 lakh, a decrease from ₹2,246.03 lakh in the corresponding quarter of the previous year. Total expenses for the quarter rose to ₹2,035.66 lakh from ₹2,186.60 lakh in the same period last year.

Operational Highlights

The company's finance costs for the year decreased to ₹388.29 lakh from ₹457.76 lakh in the previous year. Depreciation and amortization expenses also reduced to ₹218.28 lakh from ₹320.59 lakh. However, employee benefit expenses increased to ₹741.82 lakh from ₹819.63 lakh. The basic and diluted earnings per share (EPS) for the year stood at a loss of ₹1.11 and ₹0.72 respectively, before and after exceptional items.

Auditor's Observations

The statutory auditors, DM K H & Co., issued a qualified opinion on the financial results. Key concerns included the inability to ascertain the correctness of inventory valuation due to lack of proper records, non-compliance regarding statutory requirements for an advance to a subsidiary, and uncertainty regarding the recoverability of a significant advance given to a creditor. Additionally, the company has not recognized Expected Credit Loss (ECL) provisions on trade receivables outstanding for over three years.

Trading Window Update

In accordance with the Code of Conduct for the prevention of Insider Trading, the company stated that the trading window will open 48 hours after the declaration of the financial results. This applies to all directors and designated officers of the company.

Laxmi Cotspin Limited's Board of Directors held a meeting on 30th April 2026 at the company's registered office, approving several key corporate governance decisions. The meeting commenced at 12.30 PM and concluded at 1.00 PM, addressing important matters related to board composition and subsidiary management.

Board Appointment Details

The Board approved the appointment of Mrs. Sharda Ghansham Sikchi as Additional Non-Executive Women Director of the company. Her appointment is effective from 30th April 2026 for a term of 5 consecutive years, subject to shareholder approval at the ensuing General Meeting.

Director Profile and Qualifications

Mrs. Sharda Ghansham Sikchi brings practical industry experience to the Board with her background in the cotton ginning sector. She has completed her education up to the 10th standard and possesses hands-on experience in cotton ginning operations. Her expertise encompasses:

• Raw cotton procurement processes
• Ginning operations management
• Quality grading and assessment
• Cotton bales handling procedures
• Supply chain aspects of the cotton industry

The company confirmed that Mrs. Sikchi is not related to any existing Directors or Key Managerial Personnel and is not debarred from holding directorial positions by any SEBI order or regulatory authority.

Subsidiary Strike-Off Decision

The Board approved the voluntary strike-off of Laxmi Style & Design Private Limited, a wholly owned subsidiary of the company. This decision was made as the subsidiary has not commenced any business operations since its incorporation. The company stated that this closure is not expected to have any material impact on its consolidated financial performance.

Authorization for Closure Process

The Board authorized Mr. Ramesh Gopikishan Mundada, Director of the Company, to act as Authorized Signatory for the subsidiary closure process. His responsibilities include:

• Executing and signing all necessary documents and applications
• Submitting required declarations and forms
• Representing the company before regulatory authorities
• Coordinating with Registrar of Companies and tax authorities
• Completing all statutory formalities for the closure

The voluntary strike-off process is expected to be completed within 6-7 months, subject to receipt of regulatory approvals and completion of statutory formalities. Upon completion, Laxmi Style & Design Private Limited will cease to be a subsidiary of Laxmi Cotspin Limited.