Sri Lakshmi Saraswathi Textiles (Arni) Limited ( Sri Lakshmi Saraswathi Textiles (Arni) Limited ) has released the voting results for its 62nd Annual General Meeting held on August 26, 2026. While three ordinary resolutions were approved, the special resolution to amend the Memorandum of Association failed to pass.

The company submitted the consolidated voting results and the scrutinizer's report from M/s A.K. Jain & Associates to the BSE on August 28, 2026. The report confirms that the special resolution did not receive the requisite majority, as votes in favor were less than three times those against.

Voting Results

Shareholders cast a total of 24,49,667 valid votes across all four items. Remote e-voting prior to the AGM accounted for 21,95,566 votes, while 2,54,101 votes were cast during the meeting via video conferencing.

Key Outcomes

The ordinary resolutions for adopting the audited standalone financial statements for FY26, re-appointing Sri R. Padmanaban as a director retiring by rotation, and ratifying the remuneration of cost auditors for FY27 were all passed with approximately 73.16% support.

The special resolution to add an additional clause in the Objects Clause of the Memorandum of Association received 73.15% support in absolute terms but failed to meet the statutory threshold for special resolutions. Under Section 108 of the Companies Act, 2013, a special resolution requires votes in favor to be at least three times the votes against. With 6,57,615 votes against, the required majority was not achieved.

Governance Details

The scrutinizer noted that votes cast by one corporate shareholder holding 1,000 equity shares were deemed invalid due to non-receipt of the necessary authorization letter. The e-voting process was conducted through Central Depository Services (India) Limited (CDSL), with the remote voting window open from August 23 to August 25, 2026.

Sri Lakshmi Saraswathi Textiles (Arni) Limited reported a standalone net loss of ₹551.84 lakh for the quarter ended June 30, 2026, widening from a loss of ₹377.05 lakh in the same period last year.

The textile manufacturer’s total income from operations fell to ₹2,072.19 lakh from ₹2,223.90 lakh year-on-year, reflecting a contraction in net sales to ₹2,070.36 lakh against ₹2,197.69 lakh in Q1FY26.

Financial Performance

The company’s operational costs remained elevated despite the revenue decline. Cost of materials consumed stood at ₹1,225.41 lakh, while employee benefit expenses rose to ₹474.69 lakh from ₹540.64 lakh in the prior year quarter. Finance costs decreased significantly to ₹125.02 lakh from ₹154.90 lakh, contributing to a slight moderation in pre-tax losses before tax adjustments.

The basic and diluted earnings per share were negative ₹16.56, compared to negative ₹11.31 in the corresponding quarter of FY26. Deferred tax benefits reduced the net loss by ₹76.67 lakh.

Auditor Concerns and Statutory Dues

Independent auditors S. Viswanathan LLP issued a qualified review report, highlighting a material uncertainty related to the company’s ability to continue as a going concern. The firm noted accumulated losses of ₹10,514.05 lakh as of March 31, 2026, resulting in a continued negative net worth.

The audit report also flagged significant non-compliances regarding statutory dues:

• Employees' Provident Fund (EPF): Consolidated dues of ₹149.10 lakh for the period August 2024 to June 2026 remained outstanding. Provisions for interest and damages totaled ₹26.14 lakh.
• Tax Deducted at Source (TDS): TDS and TCS aggregating to ₹22.83 lakh for May 2025 to June 2026 were not deposited within prescribed timelines.
• Employees' State Insurance (ESI): Contributions of ₹5.24 lakh for October 2025 to June 2026 remained unpaid.

Management clarified that recent cost control measures have reduced losses over the past two to three quarters. The company attributed delays in statutory payments to cash flow constraints but stated that regularisation efforts are underway. Additionally, capital advances of ₹34.58 lakh for machinery purchases have remained outstanding for over three years without balance confirmation.

What the Numbers Show

The divergence between declining revenue and rising total expenses highlights persistent operational inefficiencies. While finance costs decreased by nearly 19% year-on-year, this saving was offset by higher employee benefit expenses and stable material costs, leading to a wider net loss despite lower top-line activity.