Simplex Mills Company Limited secured unanimous shareholder approval for its audited financial statements for FY26 and key board appointments at its 28th Annual General Meeting (AGM) on August 4, 2026. The meeting, conducted via Video Conferencing/Other Audio Visual Means (VC/OAVM), saw all three resolutions pass with 100% support from the 25,079 valid votes cast. This outcome reinforces the company’s governance stability as it appoints Shrikrushna N. Pawar as a Non-Executive Independent Director and reappoints Shekhar R Singh, who retires by rotation.

The voting process was scrutinized by Binit Kumar, Practicing Company Secretary, pursuant to Section 108 of the Companies Act, 2013 and Rule 20 of the Companies (Management and Administration) Rules, 2014. The remote e-voting window operated from August 1, 2026, at 9:00 am to August 3, 2026, at 5:00 pm, facilitated by National Securities Depository Limited (NSDL). No votes were cast during the live AGM session, as all eligible shareholders had voted remotely. The total shareholder base on the record date of July 28, 2026, stood at 800.

Voting Breakdown by Shareholder Category

The promoter group, holding 21,354 shares, participated fully with a 100% polling rate. Institutional investors, holding 4,206 shares, showed strong engagement with an 88.04% polling rate. In contrast, public non-institutional shareholders, who hold 4,444 shares, demonstrated minimal participation, with only 22 votes polled, representing just 0.50% of their holdings.

Resolutions Passed

All resolutions were passed without any invalid votes or opposition. The specific outcomes were:

1. Adoption of Financials: The audited financial statements for the year ended March 31, 2026, along with the Directors’ and Auditors’ reports, were adopted as an ordinary resolution.
2. Reappointment of Director: Shekhar R Singh (DIN: 03357281) was reappointed as a director following his retirement by rotation, passing as an ordinary resolution.
3. Appointment of Independent Director: Shrikrushna N. Pawar (DIN: 11763684) was appointed as a Non-Executive Independent Director via a special resolution.

Governance and Compliance

The proceedings complied with Regulation 44(3) of the SEBI (LODR) Regulations, 2015. Kalyani Gaurish Natekar, Company Secretary & Compliance Officer, submitted the voting results to BSE Limited on August 5, 2026. Statutory Auditors Khandelwal & Mehta LLP and Secretarial Auditors Taher Sapatwala & Associates provided clean reports, noting no qualifications that would affect the company’s functioning. The Chairman, Shekhar R Singh, presided over the meeting, which commenced at 11:00 am and concluded at 11:11 am, with 18 members present virtually to satisfy the quorum.

Simplex Mills Company reported a net loss of ₹3.74 lakh for the first quarter ended June 30, 2026, marking a significant improvement from the ₹11.29 lakh loss recorded in the preceding quarter. The company, which operates exclusively in the textile segment, generated no revenue from operations during the period. Instead, total income was derived entirely from other income amounting to ₹15.41 lakh. The narrowing of the deficit was primarily driven by a substantial reduction in other expenses, which fell to ₹10.42 lakh from ₹17.86 lakh in the previous quarter, highlighting improved cost containment despite the absence of core business activity.

The Board of Directors approved the unaudited financial results at a meeting held on August 3, 2026, in compliance with Regulations 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit Committee and subjected to a limited review by the statutory auditors, Khandelwal & Mehta LLP. The company’s paid-up equity share capital remains unchanged at ₹300.04 lakh, comprising shares with a face value of ₹1,000 each. Basic and diluted earnings per share stood at ₹(12.45), compared to ₹(37.62) in the previous quarter.

Financial Performance Overview

The company’s financial position for the quarter reflects continued operational dormancy regarding core business activities, with all income derived from non-operating sources. Finance costs remained relatively stable at ₹6.58 lakh, while employee benefits expense was ₹2.15 lakh. Notably, depreciation and amortisation expense was nil for the quarter, contrasting with ₹0.21 lakh in the previous period. The total expenses for the quarter amounted to ₹19.15 lakh, down from ₹26.88 lakh in the prior period.

Auditor Emphasis on Recoverable Advances

Khandelwal & Mehta LLP included an emphasis of matter paragraph in their review report regarding loans and advances recoverable from a company whose net worth is eroded. The auditors noted that these advances have not been impaired. This decision is based on management’s view, supported by projections submitted by the concerned entity, that the advances are recoverable. The auditors stated that their conclusion is not modified in respect of these matters. Additionally, the auditor highlighted that the figures for the quarter ended March 31, 2026, are balancing figures between audited full-year figures and unaudited year-to-date figures up to the third quarter.

What the Numbers Show

The most significant aspect of Simplex Mills’ Q1FY26 performance is the sharp contraction in other expenses, which dropped from ₹17.86 lakh in Q4FY26 to ₹10.42 lakh in Q1FY26. This reduction was the primary driver behind the narrowing of the net loss from ₹11.29 lakh to ₹3.74 lakh. With zero revenue from operations, the company’s ability to reduce losses hinges entirely on controlling operating costs and managing finance charges, rather than generating top-line growth. The reliance on other income as the sole source of funds highlights the ongoing lack of commercial activity in its textile segment, making cost discipline the critical factor for financial stability.