Pasari Spinning Mills Limited reported a net profit of ₹27.96 lakh for the financial year ended March 31, 2026, a decrease from ₹36.05 lakh in the previous year, as per its audited standalone financial results. The decline in profitability is primarily attributable to a reduction in rental income, which was recognized only up to January 2026 following the vacation of premises pursuant to an order by the Hon'ble Commercial Court, Mysuru. The company's total income for the year stood at ₹53.25 lakh, compared to ₹68.66 lakh in FY25.

The Board of Directors approved the financial results at a meeting held on May 29, 2026. The results were reviewed by the Audit Committee and are accompanied by an Independent Audit Report from the statutory auditors, Rao & Emmar, Chartered Accountants. The report notes that the financial statements have been prepared on a going concern basis, despite a material uncertainty highlighted by the auditors regarding ongoing legal disputes.

Key Financial Metrics

The company's expenses for the year totaled ₹25.31 lakh, lower than the ₹34.29 lakh reported in the previous year. Other operating income decreased to ₹53.25 lakh in FY26 from ₹68.66 lakh in FY25. The basic earnings per share (EPS) for the year stood at ₹0.20, down from ₹0.26 in the prior year.

Legal Disputes and Contingent Liabilities

The auditors have drawn attention to an ongoing legal dispute between the company and Cotton Corporation of India Limited (CCI) regarding cotton purchases and related claims. Execution proceedings were initiated before the Hon'ble Commercial Court, Mysuru, and a Proclamation of Sale was issued for an immovable property of the company to recover alleged dues amounting to ₹703.12 lakh. The Hon'ble High Court of Karnataka has granted an interim stay on the execution proceedings as of January 06, 2026.

Security deposits amounting to ₹63.90 lakh given to CCI have been fully provided for in earlier years. The balance disputed amount of ₹639.23 lakh has been disclosed as a contingent liability pending the final outcome of the legal proceedings. Additionally, the company has not paid property tax since FY 2019-20, though an estimated provision of ₹18.87 lakh has been made in the financial statements.

Auditor Observations

The Independent Audit Report included an emphasis of matter paragraph regarding the company's investment properties, which have not been revalued during the current financial year, with the last revaluation conducted on March 31, 2022. The auditors also noted that the Chief Financial Officer has not signed the Financial Statements, as required under Section 134 of the Companies Act, 2013. Despite these observations, the audit report remains unqualified.

Pasari Spinning Mills Limited has announced that its board meeting is scheduled to be held on May 29, 2026. The primary agenda of the meeting is to consider and approve the audited financial results for the quarter and year ending March 31, 2026, along with the Independent Audit Report.

The meeting will be conducted at the registered office of the company located at No 18, III Floor, Anjaneya Temple Road, Yediyur, Jayanagar 6th Block, Bangalore. The proceedings are set to commence at 3:00 PM.

Agenda Details

The board will deliberate on the following key business items:

• To consider and approve the Audited financial results for the quarter ended and Year ending 31st March, 2026 along with the Independent Audit Report.
• Any other business with the permission of the Chairman and majority of the Directors present in the meeting.

The intimation regarding this meeting was addressed to the Bombay Stock Exchange on May 21, 2026, by Krishna Kumar Gupta, the Managing Director of the company.