Salem Erode Investments Limited reported a net loss of ₹484.66 lacs for the financial year ended March 31, 2026, widening from the net loss of ₹471.93 lacs in the previous year. Total income for the year declined to ₹356.67 lacs from ₹390.77 lacs in FY25, while total expenses reduced to ₹852.87 lacs from ₹885.89 lacs. The statutory auditors issued an unmodified opinion on the standalone financial results, which were approved by the board at its meeting held on May 26, 2026.

The company published the audited standalone financial results for the quarter and financial year ended March 31, 2026, in newspapers "The New Indian Express" and "Dinamani" on May 27, 2026, pursuant to Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing was submitted to BSE Limited.

Financial Performance

The company recorded a loss before tax of ₹496.19 lacs for FY26, compared to a loss of ₹495.12 lacs in the previous year. For the quarter ended March 31, 2026, the net loss stood at ₹139.86 lacs. Basic and diluted earnings per share for the year were reported at a loss of ₹4.23 per share. The company maintained full asset cover by way of hypothecation of all loan receivables and advances on its secured unlisted redeemable non-convertible debentures as at March 31, 2026.

Asset and Liability Position

Total assets as at March 31, 2026, stood at ₹3,236.30 lacs, a decrease from ₹3,643.53 lacs in the previous year. Cash and cash equivalents dropped significantly to ₹70.29 lacs from ₹555.80 lacs. Loans and advances grew to ₹1,718.76 lacs from ₹1,353.84 lacs. On the liabilities side, borrowings (other than debt securities) were recorded at ₹200.00 lacs, while debt securities stood at ₹1,112.08 lacs. Equity share capital remained unchanged at ₹114.66 lacs.

Salem Erode Investments Limited has provided clarification to BSE regarding recent movements in its share price, linking the fluctuation to a significant corporate development approved by its Board of Directors.

Rights Issue Approval Details

The company's Board of Directors, in their meeting held on March 24, 2026, approved a substantial fund raising initiative through rights issue. The approved fundraising involves the offer and issuance of fully paid-up equity shares.

Compliance and Trading Window Closure

The company demonstrated adherence to regulatory requirements by implementing proper compliance measures around the Board meeting. Prior intimation for the Board Meeting was filed on March 19, 2026, ensuring transparency in corporate communications.

The trading window for dealing in the company's securities was closed for all relevant parties from March 19, 2026 until 48 hours after declaration of the meeting outcome. This closure applied to:

• Connected Persons
• Insiders
• Designated Persons
• Their immediate relatives

The closure was implemented in accordance with the Code of Conduct under the SEBI (Prohibition of Insider Trading) Regulations, 2015, as amended.

Company's Position on Price Movement

In response to BSE's query dated April 13, 2026, the company believes that the recent share price movement may be attributable to the rights issue approval. The company has explicitly confirmed that there is no other undisclosed material information or event that may have contributed to the price movement.

This clarification, signed by Company Secretary & Compliance Officer Visakh T. V., was submitted to BSE on April 14, 2026, providing transparency regarding the factors influencing the company's share price performance.