Sri Lakshmi Saraswathi Textiles (Arni) Limited will hold its 62nd Annual General Meeting (AGM) on August 26, 2026, to seek shareholder approval for a strategic diversification into the real estate sector. The company aims to amend its Memorandum of Association (MOA) to undertake property development, construction, and leasing activities, leveraging its existing land and building assets to generate new revenue streams. Shareholders must ensure their holdings are recorded by August 19, 2026, as the share transfer books remain closed from August 20, 2026, to August 26, 2026.

The special resolution allows the company to expand beyond its traditional textile operations into joint ventures with builders, outright purchase and sale of lands, and development of warehouses and multi-storied complexes. This move is designed to monetize underutilized assets and increase net worth for stakeholders. No directors or key managerial personnel have a financial interest in this resolution.

Strategic Expansion Details

The proposed amendment to Clause III of the MOA permits the company to engage in:

• Real estate development and joint ventures with builders
• Construction and contracting services
• Outright purchase and sale of lands
• Property leasing and retail stores, including e-commerce operations
• Development of warehouses, multi-storied complexes, convention halls, and auditoriums

Ordinary Business and Appointments

Alongside the strategic expansion, the Board has placed ordinary business items before shareholders. These include the adoption of Audited Financial Statements for the year ended March 31, 2026, and the re-appointment of Sri R. Padmanaban as a Director. Padmanaban, aged 56, retires by rotation and currently serves as Joint Managing Director & CFO. He has been with the Board since April 1, 2014, and holds 2,23,900 equity shares in the company.

The meeting will also ratify the remuneration of M/s. S V M & Associate, Cost Accountants, for the financial year 2026-27. The Audit Committee recommended their appointment at a fee of ₹80,000 plus out-of-pocket expenses and applicable taxes, approved by the Board on May 27, 2026.

Key Dates and Shareholder Instructions

The AGM will be conducted via Video Conferencing or Other Audio-Visual Means (VC/OAVM), in compliance with Ministry of Corporate Affairs and Securities and Exchange Board of India regulations. Remote e-voting through Central Depository Services (India) Limited will be open from August 23, 2026, to August 25, 2026. Members are advised to update their PAN and bank details with Cameo Corporate Services Limited. Physical shareholders must register email IDs with the registrar for electronic communication. Proxy appointments are not available for this VC-based meeting.

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 statutory auditor, M/s. S. Viswanathan LLP, has 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.

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.

Auditor Observations

The auditor 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. The company has also not been regular in depositing undisputed statutory dues, with outstanding ESI contributions of ₹10.42 lakh and an excess Input Tax Credit (ITC) of ₹6.75 lakh under IGST pending reversal.

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.