Raama Paper Mills Limited reported a net loss of ₹140.97 lakh for the quarter ended June 30, 2026 (Q1FY27), with zero revenue from operations as its manufacturing plant remains non-operational.

The company’s statutory auditors, Jagdish Chand & Co., issued a qualified opinion on the standalone financial results. The audit report highlighted that the company has not provided interest of ₹136.10 lakh for the quarter on two secured inter-corporate deposits. Had this interest been accounted for, the net loss would have increased by the same amount. Cumulatively, unpaid interest since June 2024 stands at ₹1,126.82 lakh.

Financial Performance Overview

The company recorded total income of ₹1.14 lakh, derived entirely from other income, as operational revenue remained nil. Total expenses stood at ₹142.12 lakh, driven primarily by depreciation and amortization expenses of ₹87.16 lakh and employee benefits of ₹25.01 lakh. The earnings per share (basic and diluted) was negative at ₹1.46.

Audit Qualifications and Compliance Issues

The auditors raised several material concerns beyond the unprovided interest:

• Inventory Verification: No physical verification of inventory was carried out during the quarter, rendering the amount unascertainable.
• MSME Compliance: The company failed to bifurcate trade payables into Micro, Small and Medium Enterprises (MSMEs) and others, violating Section 22 of the MSME Development Act, 2006. Consequently, auditors could not comment on any overdue interest payable to MSMEs.
• Asset Valuation: Due to the non-operational status of the Kiratpur plant, sufficient evidence regarding the realizable value of property, plant, equipment, and inventories was unavailable.

Going Concern Uncertainty

As of June 30, 2026, Raama Paper Mills had accumulated losses of ₹7,390.23 lakh and a negative net worth of ₹5,256.45 lakh. Current liabilities exceeded total assets by ₹3,632.96 lakh. These factors indicate a material uncertainty that may cast significant doubt on the company’s ability to continue as a going concern.

The company is currently under the Corporate Insolvency Resolution Process (CIRP) pursuant to an NCLT order dated June 7, 2024. While a fresh resolution plan has been approved by the Committee of Creditors (COC), it remains pending approval from the NCLT. The financial results have been prepared on a going concern basis contingent upon the approval of this new plan.

What the Numbers Show

A divergence exists between the reported net loss and the economic reality disclosed in the audit notes. The reported loss of ₹140.97 lakh excludes ₹136.10 lakh in accrued but unprovided interest. This omission means the adjusted loss is nearly double the reported figure, significantly understating the financial burden of debt obligations during the insolvency period.

Raama Paper Mills Limited has submitted its annual report for the financial year ended March 31, 2026, and intimated the book closure dates for its upcoming annual general meeting. The company filed the document with BSE Limited pursuant to SEBI LODR regulations.

The 41st Annual General Meeting (AGM) is scheduled for September 30, 2026, at 5:00 pm. The meeting will be conducted through video conferencing or other audio-visual means (VC/OAVM). Shareholders will receive the annual report electronically, and it is also available on the company’s website.

Book Closure Details

The register of members and share transfer books will remain closed from September 23, 2026, to September 30, 2026, inclusive. This closure is mandated under Regulation 42 of the SEBI LODR Regulations and Section 91 of the Companies Act, 2013.

Financial Performance

Raama Paper Mills reported a net loss of ₹614.49 lakh for FY26, an improvement from the net loss of ₹1,644.36 lakh in the previous year. Revenue from operations declined sharply to ₹125.86 lakh from ₹665.13 lakh in FY25. Total expenses fell to ₹739.92 lakh from ₹2,226.25 lakh, driven by lower material consumption and employee benefits.

Corporate Insolvency Resolution Process

The company remains under the purview of the Corporate Insolvency Resolution Process (CIRP) as per the Insolvency and Bankruptcy Code, 2016. The Hon'ble Allahabad Bench of NCLT appointed Sandeep Kumar Agrawal as the Resolution Professional. The powers of the Board of Directors are suspended, with management vested in the RP. A resolution plan submitted by Poddar Global Limited was approved by the Committee of Creditors and submitted to the NCLT for approval.

Balance Sheet Highlights

As of March 31, 2026, the company reported total assets of ₹5,529.34 lakh, down from ₹6,607.74 lakh in the previous year. Total liabilities stood at ₹10,644.82 lakh. The company has a negative net worth of ₹5,115.48 lakh. Current liabilities exceeded total assets by ₹3,512.05 lakh, indicating significant liquidity pressure.

The filing includes the notice of the AGM, audited financial statements, and the board’s report as required under the Companies Act, 2013.