Sabar Flex India Limited appointed M/s. Sarang Shivajirao Chavan and Associates as its statutory auditor effective July 08, 2026. The appointment, approved by the Board based on the Audit Committee's recommendation, will hold office until the conclusion of the ensuing general meeting. This change follows the resignation of the previous auditor, M/s. Bhatt Shah Mekhia & Co., effective July 07, 2026, due to pre-occupation with other professional commitments.

The Board of Directors accepted the resignation of M/s. Bhatt Shah Mekhia & Co. and recorded its appreciation for their guidance during their tenure. The outgoing auditor confirmed that the resignation was solely due to pre-occupation and that there were no other material reasons. The firm had issued unmodified audit reports for the financial year ended March 31, 2026, on May 30, 2026.

Auditor and Secretarial Auditor Details

The new statutory auditor, M/s. Sarang Shivajirao Chavan and Associates (Firm's Registration No. 159649W), is an Ahmedabad-based firm providing services including statutory audit, internal audit, tax audit, and GST compliances. Additionally, the Board appointed M/s. SCS AND CO. LLP (LLPIN: AAV-1091) as the Secretarial Auditor for the Financial Year 2026-27.

The disclosures regarding the appointment and resignation were made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and the relevant SEBI Master Circular. The Board meeting commenced at 02:30 PM and concluded at 03:00 PM on July 08, 2026.

Sabar Flex India Limited reported a 63.3% decline in net profit to ₹25.89 lakhs for the year ended March 31, 2026, down from ₹70.51 lakhs in the previous year. Revenue from operations fell 29.4% to ₹10,434.74 lakhs in FY26 from ₹14,771.82 lakhs in FY25, primarily impacted by reduced material consumption costs which dropped to ₹10,091.61 lakhs. The Board of Directors approved the audited standalone and consolidated financial results at a meeting held on May 30, 2026.

Standalone Financial Performance

The company's finance costs declined significantly to ₹84.37 lakhs in FY26 from ₹243.44 lakhs in FY25, providing some relief to the bottom line. Total expenses for the year stood at ₹10,438.99 lakhs compared to ₹14,669.73 lakhs in the prior year. Profit before tax decreased to ₹26.86 lakhs from ₹102.38 lakhs. The basic earnings per share (EPS) for FY26 was ₹0.13, down from ₹0.37 in the previous year.

Balance Sheet and Cash Flow

The standalone balance sheet as of March 31, 2026, showed total assets of ₹7,887.07 lakhs, an increase from ₹7,440.25 lakhs in the previous year. Trade receivables rose to ₹4,389.49 lakhs from ₹3,744.71 lakhs, while inventories decreased to ₹1,956.39 lakhs from ₹2,072.02 lakhs. Cash and cash equivalents stood at ₹6.17 lakhs at the end of the period.

Net cash flow from operating activities improved to ₹26.45 lakhs in FY26 compared to an outflow of ₹546.72 lakhs in FY25. Net cash used in investing activities was ₹205.72 lakhs, while financing activities provided a net inflow of ₹161.83 lakhs.

Consolidated Results and Auditor's Report

The consolidated financial results, which include wholly owned subsidiaries Abode Foods & Beverages Private Limited and Pionex Agricom Private Limited, mirrored the standalone performance with revenue of ₹10,434.74 lakhs and a net profit of ₹25.89 lakhs. The consolidated balance sheet reflected a larger asset base of ₹19,169.30 lakhs, driven by short-term loans and advances of ₹8,091.63 lakhs and trade receivables of ₹7,725.80 lakhs.

The statutory auditor, M/s. Bhatt Shah Mekhia & Co., issued an unmodified and unqualified opinion on the financial results. The auditor noted certain disputes regarding the quality of finished goods supplied to customers, which the company is actively resolving. The company confirmed it remains outside the purview of the Large Corporate criteria as of March 31, 2026.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE0DZ101013/dc87cfd986eb400b.pdf