Sri Lakshmi Saraswathi Textiles narrows FY26 loss to ₹1574.43 lakh
Sri Lakshmi Saraswathi Textiles (Arni) Limited narrowed its net loss to ₹1574.43 lakh in FY26 from ₹2132.31 lakh in FY25, while total income from operations decreased to ₹8814.10 lakh. The statutory auditor raised concerns about the company's going concern status and defaults on statutory dues. The board re-appointed secretarial, internal, and cost auditors for the upcoming financial year.
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Sri Lakshmi Saraswathi Textiles (Arni) Limited reported a narrowed net loss of ₹1574.43 lakh for the financial year ended March 31, 2026, compared to a loss of ₹2132.31 lakh in the previous year. Total income from operations for the year declined to ₹8814.10 lakh from ₹10022.80 lakh in FY25. The company’s board approved the audited financial results during a meeting held on May 27, 2026.
Financial Performance
For the quarter ended March 31, 2026, the company reported a net loss of ₹378.63 lakh, narrowing from a loss of ₹438.72 lakh in the same period of the previous year. Total income for the quarter stood at ₹2103.31 lakh, down from ₹2644.18 lakh in the corresponding quarter last year. The basic and diluted earnings per share for the year were reported at a loss of ₹47.24, compared to a loss of ₹62.13 in the prior year.
| Metric | FY26 (₹ in Lakhs) | FY25 (₹ in Lakhs) |
|---|---|---|
| Total Income from Operations | 8814.10 | 10022.80 |
| Total Expenses | 10468.11 | 12136.64 |
| Net Profit/Loss for the period | (1574.43) | (2132.31) |
| Equity Share Capital | 333.28 | 333.28 |
Auditor Observations
The statutory auditor, S. Viswanathan LLP, highlighted a material uncertainty regarding the company's ability to continue as a going concern due to the complete erosion of net worth and accumulated losses of ₹10514.05 lakh. The auditor also noted significant defaults in the remittance of statutory dues, including Employees' Provident Fund (EPF) dues of ₹124.78 lakh and Tax Deducted at Source (TDS) of ₹24.47 lakh. Additionally, the auditor reported an inability to obtain balance confirmations for significant outstanding balances, including trade receivables and payables.
Board Appointments
Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the board approved the re-appointment of M/s. A K Jain & Associates as Secretarial Auditors for the financial year 2026-27. The board also appointed M/s G Natesan and Co and M/s RVK & CO. as Internal Auditors, and M/s. SVM Associates as Cost Auditor for the same period.
Historical Stock Returns for Sri Lakshmi Saraswathi Textiles
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.17% | -1.96% | -18.07% | -34.17% | -42.39% | +300.00% |
What specific turnaround strategies or capital infusion plans does management intend to implement to address the auditor's concerns regarding the company's status as a going concern?
How does the company plan to clear the significant statutory dues, including EPF and TDS defaults, to avoid potential regulatory penalties or legal actions?
Will the decline in total income from operations persist in the coming quarters, and what measures are being taken to stabilize or reverse this downward revenue trend?
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