Simplex Papers Ltd will seek shareholder approval to sell a non-operational land parcel in Gondia and appoint a new independent director at its 32nd Annual General Meeting scheduled for August 4, 2026. The meeting will be conducted through video conferencing, with the record date set for July 28, 2026, to determine shareholder eligibility.

The Board of Directors has approved a proposal to sell, transfer, or otherwise dispose of land situated at Survey No. 339, Village Konari 18, Taluka & District Gondia-441601 Maharashtra. The property, measuring approximately 0.61 hectare, was acquired on June 27, 2001, and has remained vacant without generating any revenue. The company aims to utilize the net proceeds from the sale for general corporate purposes to optimize its asset portfolio and unlock idle capital.

Shareholders will also vote on the appointment of Shri Shrikrushna N. Pawar (DIN 11763684) as a Non-Executive Independent Director. The appointment is for a term of five years from June 16, 2026, to June 15, 2031. The resolution includes shareholder approval for his continuation after he attains the age of 75 years during his term. Additionally, Shri Shekhar R Singh (DIN 03357281), who retires by rotation, is eligible for re-appointment.

The register of members and transfer books will remain closed from July 29, 2026, to August 4, 2026. Remote e-voting will commence on August 1, 2026, at 9:00 A.M. and conclude on August 3, 2026, at 5:00 P.M. Members can participate in the meeting and cast votes through the NSDL e-voting system.

The statutory auditors' report and the audited financial statements for the financial year ended March 31, 2026, will be presented for adoption at the meeting. Shri Binit Kumar, Practicing Company Secretary, has been appointed as the Scrutinizer to oversee the e-voting process.

Simplex Papers Limited reported a narrowed net loss of ₹1.14 crore for the financial year ended March 31, 2026, compared to a net loss of ₹1.60 crore in the previous year. The company, which has no revenue from operations, continues to face financial headwinds as its net worth has been fully eroded by accumulated losses. Consequently, the statutory auditors have flagged a material uncertainty regarding the entity's ability to continue as a going concern.

The financial statements reveal that the company’s total income stood at ₹0.01 crore, solely comprising other income, while total expenses amounted to ₹1.15 crore. The primary expense drivers were employee benefits and other operational costs. Despite the reduction in losses, the auditors emphasized that the financial statements have been prepared on a going concern basis based on management's projections, though significant doubts remain about the company's ability to meet its liabilities as they fall due.

Financial Performance

The company’s financial performance for the year reflects a challenging operational environment with no revenue generated from trading activities. The loss before tax for the period was ₹1.14 crore, a reduction from the ₹1.60 crore loss recorded in the previous fiscal year.

Contingent Liabilities and Audit Observations

A significant risk factor for simplex papers is the substantial contingent liabilities disclosed in the annual report. The company is involved in appeals regarding disputed excise duty demands aggregating to ₹33.36 crore, relating to the period from 1994 to 2000, which are currently pending adjudication before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT).

Furthermore, the Independent Auditor’s Report drew attention to the company’s eroded net worth and accumulated losses. The auditors noted that this situation, combined with other matters, indicates an uncertainty that may cast doubt on the company's ability to continue as a going concern. However, the opinion was not modified, relying on management’s projections.

Corporate Governance and Board Changes

During the year, the company witnessed changes in its board composition. Smt. Sita Sunil ceased to be a Director effective April 7, 2026. Subsequently, the board approved the appointment of Shri Shrikrushna N. Pawar as an Additional Director in the category of Non-Executive Independent Director, effective June 16, 2026, subject to shareholder approval.

The board has recommended the re-appointment of Shri Shekhar R Singh, who retires by rotation at the upcoming Annual General Meeting. The company has also proposed a special resolution to seek shareholder approval for the sale of a non-operational land parcel in Gondia, Maharashtra, to unlock idle capital.