Minal Bharat Patel, a promoter of Rubfila International Ltd, confirmed that no shares held directly or indirectly were encumbered during the financial year ended March 31, 2026. The declaration covers Patel and persons acting in concert (PACs), ensuring the holdings remained free of charges or liens for the full fiscal period.

The disclosure was filed in compliance with Regulation 31(4) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. This regulation requires promoters to periodically inform the stock exchanges regarding any encumbrance on their shareholdings. The confirmation was submitted to the exchanges on April 6, 2026, from Mumbai.

Rubfila International Ltd, listed on the BSE and NSE, acknowledged the receipt of the declaration. The filing serves as a formal record of the promoter's compliance with the regulatory framework governing shareholding disclosures.

Rubfila International reported a standalone net profit of ₹824.63 lakh for the quarter ended March 31, 2026, an increase from ₹768.51 lakh in the corresponding period of the previous year, while revenue from operations rose to ₹13,851.15 lakh. For the full financial year, the company recorded a net profit of ₹2,630.13 lakh on revenue of ₹51,171.86 lakh. The Board of Directors has recommended a final dividend of ₹2 per equity share for the financial year ended March 31, 2026, pending approval at the Annual General Meeting.

The financial results were approved by the Board in a meeting held on May 26, 2026. The company operates primarily in the Latex Rubber Thread and Corrugated Carton Box segments, with consolidated revenue for the year reaching ₹60,249.96 lakh. The consolidated net profit for the year stood at ₹2,661.19 lakh.

Auditor's Qualified Opinion

Mohan & Mohan Associates, the statutory auditors, issued a qualified opinion on the standalone and consolidated financial results. The auditors flagged a 'Provision for Contingencies' amounting to ₹1,349 lakh as of March 31, 2026, which includes a current year charge of ₹120 lakh. The auditors noted that the company failed to identify any present obligation, past event, or counterparty underlying this provision, citing only generalized uncertainties in the legal and regulatory environment.

The auditors stated that this provision does not comply with Ind AS 37 as no present obligation arising from a past event has been established, and the amount is not a best estimate of an identifiable outflow. Consequently, the profit before tax for the year would have been higher by ₹120 lakh had this charge not been recognised. The auditors were unable to establish the appropriateness of the accumulated provision balance.

Management's Response

In its statement on the impact of audit qualifications, the management defended the provision, stating it was initiated in 2014-15 to address perceived uncertainties in the business, particularly regarding the legal and regulatory environment. The Board considers the provision, currently accumulated at ₹120 lakh per annum, to be commensurate with the size of the company and prudent to continue. The Audit Committee and Board deliberated on this issue on May 26, 2026.

Segment Performance

The Latex Rubber Thread segment remained the primary revenue driver, contributing ₹50,461.97 lakh in standalone revenue for the year. The Corrugated Carton Box segment added ₹1,271.12 lakh. The consolidated results include the financials of the wholly-owned subsidiary, Premier Tissues India Limited, which operates in the Paper Tissue segment.