Simplex Mills Company concluded its 28th Annual General Meeting (AGM) on August 4, 2026, formally adopting the audited financial statements for the fiscal year ended March 31, 2026. The meeting, conducted via Video Conferencing/Other Audio Visual Means (VC/OAVM), also saw shareholders approve the reappointment of Shekhar R Singh, who retires by rotation, and the appointment of Shrikrushna N. Pawar as a Non-Executive Independent Director. These decisions solidify the company’s governance structure for the coming year while confirming its financial position for FY26.

The proceedings were conducted in compliance with Regulation 30, Part A of Schedule III of the SEBI (LODR) Regulations, 2015. Kalyani Gaurish Natekar, Company Secretary & Compliance Officer, submitted the official proceedings to BSE Limited on August 4, 2026. The meeting commenced at 11:00 am and concluded at 11:11 am. A total of 18 members attended the session, satisfying the requisite quorum. Shekhar R Singh, Chairman of the Company, presided over the meeting, joined by other directors including the chairpersons of the Audit Committee, Stakeholders Relationship Committee, and Nomination and Remuneration Committee.

Statutory Auditors Khandelwal & Mehta LLP, represented by partner Sunil Khandelwal, and Secretarial Auditors Taher Sapatwala & Associates, represented by proprietor Taher Sapatwala, participated via video conferencing. Their reports on the financial statements and secretarial audit were taken as read, with no qualifications or adverse remarks noted that would affect the company’s functioning. This clean audit opinion provides assurance to investors regarding the accuracy of the reported financials.

Shareholders utilized remote e-voting facilities provided in partnership with National Securities Depository Limited (NSDL). The remote e-voting window was open from August 1, 2026, at 9:00 am to August 3, 2026, at 5:00 pm. Voting during the AGM was also available for members who had not voted earlier. The facility remained open for 15 minutes after the conclusion of the business discussions to allow final votes. No registered speakers sought to address the meeting.

Resolutions Passed

The following ordinary and special resolutions were transacted during the AGM:

The Chairman informed members that consolidated e-voting results would be declared as per the details outlined in the notice dated June 16, 2026. The meeting adhered to circulars issued by the Ministry of Corporate Affairs and SEBI regarding virtual meetings.

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.