Arr Ess Leading Edge Private Limited, a promoter of SEL Manufacturing , has confirmed that the promoter group did not create any new encumbrance on shares during the financial year ended March 31, 2026. The declaration, submitted to the stock exchanges, ensures compliance with Regulation 31(4) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. This regulation requires promoters to disclose any pledge or encumbrance of shares to maintain transparency regarding shareholding patterns.

While no fresh encumbrances were reported in FY26, the promoter clarified that certain shares were already pledged in previous periods. The filing explicitly stated that the promoter and promoter group, including persons acting in concert, have not made any other encumbrance of shares, directly or indirectly, during the specified financial year.

The disclosure details the specific shareholding and pledged status of the promoter. The table below outlines the equity shares held and the corresponding number of shares that remain encumbered from prior periods.

The letter was addressed to BSE Limited, National Stock Exchange of India Limited, and the Chairperson of the Audit Committee of SEL Manufacturing Company Limited. Rajeev Bhalla, Director of Arr Ess Leading Edge Private Limited, signed the declaration on April 7, 2026.

SEL Manufacturing Company Limited reported a widened net loss of ₹16,787.23 lakh for the financial year ended March 31, 2026, compared to a net loss of ₹13,071.99 lakh in the previous year. The company's total income from operations for the year stood at ₹1,564.65 lakh, a significant decline from ₹3,314.75 lakh in FY25. The statutory auditors have highlighted a material uncertainty regarding the company's ability to continue as a going concern due to severe liquidity stress and continuous defaults on financial obligations.

Financial Performance

The board approved the audited standalone financial results for the quarter and year ended March 31, 2026, at a meeting held on May 28, 2026. For the quarter ended March 31, 2026, the company reported a net loss of ₹4,186 lakh on a total income of ₹245.51 lakh. Finance costs surged to ₹8,045.87 lakh for the full year, while depreciation and amortization expenses stood at ₹8,786.68 lakh.

Auditor's Observations

Kamboj Malhotra & Associates, the statutory auditors, issued a qualified opinion on the financial results. The qualification stems from the company's failure to conduct an impairment assessment of its Property, Plant and Equipment and Capital Work in Progress as required under Ind AS 36, citing financial constraints. The auditors stated that the financial impact of this matter cannot be measured reliably.

Going Concern and Liquidity

The auditors emphasized significant doubts about the company's ability to continue as a going concern. The company has defaulted on quarterly installments amounting to ₹30,872 lakh and unpaid interest and charges totaling ₹19,343 lakh for the period from July 2023 to March 2026. Current liabilities exceeded current assets, resulting in a negative net worth of ₹39,957.98 lakh as of March 31, 2026. The company's major plants remained shut during the year, and operations were largely sustained through job work activities.