Panafic Industrials Ltd reported a net loss of ₹236.83 lakh for the financial year ended March 31, 2026, compared to a net profit of ₹2.84 lakh in the previous year. The company's board approved the audited financial results for the fourth quarter and financial year ended March 31, 2026, at a meeting held on May 26, 2026. The statutory auditors, M/s. Sudhir Agarwal & Associates, issued an unmodified opinion on the financial results.

Financial Performance

Total revenue from operations for FY26 stood at ₹76.23 lakh, an increase from ₹65.87 lakh in FY25. However, total expenses surged to ₹312.82 lakh from ₹61.70 lakh in the prior year, primarily driven by purchases of ₹510.42 lakh and a change in stock of (₹261.34) lakh. For the quarter ended March 31, 2026, the company reported a net loss of ₹264.95 lakh on a total income of ₹5.14 lakh.

Balance Sheet Highlights

The company's total assets as of March 31, 2026, were ₹1,491.80 lakh, slightly up from ₹1,412.54 lakh in the previous year. Financial assets constituted the majority, totaling ₹1,436.99 lakh, which included loans of ₹1,151.51 lakh and cash and cash equivalents of ₹24.13 lakh. Borrowings increased significantly to ₹669 lakh from ₹355 lakh in FY25. Total equity decreased to ₹758.15 lakh from ₹993.91 lakh, driven by a negative balance in other equity of ₹63.10 lakh.

Cash Flow and Auditor's Report

Net cash used in operating activities for FY26 was ₹317.50 lakh, while net cash from financing activities was ₹314.83 lakh, largely due to proceeds from borrowings. Cash and cash equivalents at the end of the year stood at ₹24.13 lakh. The independent auditor's report confirmed that the financial statements present a true and fair view of the company's state of affairs in conformity with Indian Accounting Standards.

Panafic Industrials Ltd has confirmed that disclosures for related party transactions are not applicable for the half-year ended March 31, 2026, due to its financial metrics remaining below regulatory thresholds. The company submitted a certificate to BSE Limited on May 26, 2026, citing Regulation 23(9) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This exemption relieves the company from the compliance requirements associated with related party transaction reporting for the specified period.

The exemption is based on the company's paid-up equity share capital and net worth figures as of the last day of the previous financial year ended March 31, 2025. According to the filing, Panafic Industrials does not meet the threshold limits that trigger the applicability of corporate governance provisions under Chapter IV of the SEBI Listing Regulations.

Financial Thresholds and Compliance Status

The company's financial parameters determine its eligibility for the exemption from specific corporate governance norms. The regulations stipulate that entities with paid-up capital not exceeding ₹10 crore and net worth not exceeding ₹25 crore are exempt from certain provisions.

Since Panafic Industrials Ltd's paid-up share capital is ₹8,21,25,000 and its net worth is ₹9,93,91,080, both figures are within the limits that exempt the company from complying with Regulations 17 to 27 and specific clauses of Regulation 46. Consequently, the detailed disclosures required under Regulation 23(9) for related party transactions are not mandatory for the half-year ended March 31, 2026.

Regulatory Implications

The SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, mandate corporate governance norms for listed entities. However, Regulation 15 provides exemptions for smaller companies. Panafic Industrials Ltd falls under the category of listed entities whose specified securities are listed but do not meet the financial size criteria that necessitate full compliance with Chapter IV provisions.

The certificate, signed by Managing Director Sarita Gupta, was submitted to the General Manager of the Department of Corporate Services at BSE Limited. The company confirmed that should its financial metrics exceed the threshold limits in the future, it will comply with the applicable regulations within six months of the provisions becoming applicable.