Sri Nachammai Cotton Mills Limited shareholders unanimously approved the adoption of audited financial statements for FY26 and the reappointment of director C. Renuka during the company's 46th Annual General Meeting (AGM).

The meeting was held on September 25, 2026, at 12:15 pm through video conferencing. The proceedings were chaired by Managing Director P. Palaniappan. The company reported that 16 members attended the virtual meeting, satisfying the requisite quorum.

Voting Results and Resolutions

All three ordinary resolutions proposed in the notice were passed with overwhelming support. The voting process was conducted via remote e-voting and live e-voting during the meeting, facilitated by Central Depository Services (India) Limited (CDSL). The scrutinizer, M.R.L. Narasimha, confirmed that all resolutions received the requisite majority under the Companies Act, 2013.

The specific resolutions approved were:

1. Adoption of the audited Balance Sheet, Profit & Loss Account, and Cash Flow Statement for the year ended March 31, 2026, along with Directors' and Auditors' reports.
2. Reappointment of Smt. C. Renuka as a Director retiring by rotation.
3. Ratification of remuneration paid to the Cost Auditor for FY27.

What the Numbers Show

The voting data reveals a highly concentrated shareholder base participating in the decision-making process. Out of 3,797 shareholders on the record date, only 23 folios cast votes across all resolutions. This indicates that a small fraction of the total shareholder count exercised their voting rights, yet they controlled the outcome due to the weightage of their holdings. The dissenting votes totaled only 3 shares out of 24,03,431 votes cast, highlighting near-total consensus among active voters regarding management's performance and governance decisions for FY26.

Sri Nachammai Cotton Mills reported a net loss of ₹382.34 lakh for the fiscal year ended March 31, 2026 (FY26), widening from a loss of ₹322.99 lakh in FY25. The company's revenue from operations fell 6.7% to ₹6,452.91 lakh, driven by soft global demand and severe raw material price volatility in the spinning sector.

Financial Performance

The company generated total income of ₹6,477.29 lakh against total expenses of ₹7,170.83 lakh. Profit before exceptional items and tax stood at a loss of ₹693.54 lakh, compared to a loss of ₹402.91 lakh in the previous year. However, exceptional items contributed a gain of ₹658.88 lakh, narrowing the pre-tax loss to ₹34.66 lakh.

After accounting for income tax expenses—including a deferred tax credit of ₹272.53 lakh—the net loss after tax was ₹379.75 lakh. Total comprehensive income for the year recorded a loss of ₹382.34 lakh.

Operational Challenges

The management discussion highlighted that FY26 was challenging due to high import reliance for cotton and fluctuating prices that stalled yarn demand. Mills faced pressure from weak global sentiment, forcing discounts in the South Indian yarn market. High cotton prices earlier in the season dampened downstream garment orders.

What the Numbers Show

A significant divergence exists between operational performance and financing costs. While finance costs decreased slightly to ₹354.83 lakh from ₹371.23 lakh in FY25, depreciation rose to ₹227.96 lakh from ₹191.48 lakh. This increase in non-cash charges reflects the company's capital expenditure on plant modernization, including solar power generation, which added to the fixed cost burden during a period of declining top-line growth.

Balance Sheet Signals

Total assets remained relatively stable at ₹9,374.44 lakh, down marginally from ₹9,389.53 lakh. However, the debt structure shifted: current borrowings increased significantly to ₹2,310.94 lakh from ₹1,421.13 lakh, while non-current borrowings fell to ₹2,582.03 lakh from ₹3,142.00 lakh. This suggests a reliance on short-term funding to manage working capital requirements amidst inventory fluctuations.

Corporate Governance and AGM

The 46th Annual General Meeting is scheduled for September 25, 2026, via video conferencing. Shareholders will consider the re-appointment of director Smt C.Renuka and ratify the remuneration of Cost Auditor CMA B.Venkateswar for FY27. No dividend was declared due to inadequacy of profits.