Pasari Spinning Mills has scheduled its 35th Annual General Meeting for Saturday, September 19, 2026. The meeting will be conducted via video conference or other audio-visual means at 11:00 am.

Key Agenda Items

The primary business for the meeting involves the adoption of the audited financial statements for FY26. Shareholders will consider and adopt the Balance Sheet as of March 31, 2026, along with the Profit and Loss Account and Cash Flow Statement. These documents include the Board’s Report and the Auditors’ Report.

Director Re-Appointments

The meeting will address two director appointments:

• Kolagunda Kumar Siddappa: Retires by rotation and offers himself for re-appointment as a Director.
• Byadarahally Lakshmaiah Pundareeka: Proposed for re-appointment as an Independent Director for a second consecutive term of five years.

Mr. Pundareeka’s new term will commence on September 20, 2026, and conclude on September 19, 2031. The Nomination and Remuneration Committee recommended his re-appointment based on his performance evaluation and professional expertise in engineering.

Voting and Participation Details

Remote e-voting will be facilitated by National Securities Depository Limited (NSDL). The voting window opens on September 14, 2026, at 9:00 am and closes on September 18, 2026, at 5:00 pm.

Shareholders must hold shares as of the record date to participate. The facility to appoint proxies is not available for this meeting, though body corporates may appoint authorized representatives. Participants are advised to use stable internet connections to avoid technical issues during the virtual session.

Pasari Spinning Mills Limited reported a net loss of ₹3.62 lakh for the quarter ended June 30, 2026, marking a reversal from the ₹11.15 lakh profit posted in the corresponding period of FY25. The company’s total income for the quarter stood at ₹1.42 lakh, driven entirely by other operating income, as net sales and income from operations were nil. This represents a significant decline from the ₹16.93 lakh total income recorded in Q1FY25.

The shift to a loss position was primarily driven by expenses exceeding income. Total expenses for the quarter amounted to ₹5.04 lakh, comprising other expenses of ₹5.04 lakh, with no costs attributed to raw materials, employee benefits, or finance costs. In contrast, total expenses in Q1FY25 were ₹5.78 lakh, which included depreciation and amortisation of ₹1.93 lakh.

What the Numbers Show

A critical observation from the financial statement is the complete absence of operating revenue alongside a sharp contraction in other income. With net sales at zero and other operating income falling 91.6% year-on-year (from ₹16.93 lakh to ₹1.42 lakh), the company’s ability to generate cash from core or ancillary operations appears severely constrained. The resulting loss per share was ₹0.03, compared to earnings of ₹0.08 per share in Q1FY25.

Governance and Legal Updates

During its meeting on August 12, 2026, the Board of Directors reappointed Mr. Rayaluru Venkatapathi, a cost accountant, as the Internal Auditor. His term continues until revoked by the Board or upon his resignation.

The auditor’s limited review report highlighted an ongoing dispute with Cotton Corporation of India Limited (CCI) regarding cotton purchases. Execution proceedings were initiated against the company for alleged dues of ₹703.12 lakh, leading to a Proclamation of Sale for certain immovable properties. However, the Hon’ble High Court of Karnataka granted an interim stay on these proceedings on January 6, 2026. The company has fully provided for security deposits of ₹63.90 lakh given to CCI and disclosed the remaining disputed amount of ₹639.23 lakh as a contingent liability.

The financial results were reviewed by the Audit Committee and approved by the Board. The independent limited review was conducted by Rao & Emmar, Chartered Accountants.