Tarai Foods has scheduled its 36th Annual General Meeting for Monday, September 28, 2026. The register of members and share transfer books will remain closed from Tuesday, September 22, 2026, to Monday, September 28, 2026, to determine eligibility for voting.

The meeting will be held at 10:30 am through video conferencing or other audio-visual means. Shareholders on record as of the closing date will be eligible to vote on key agenda items, including the adoption of financial statements and director re-appointments.

Financial Performance

The food processing firm reported a net loss of ₹44.67 lakh for FY26, widening significantly from the ₹19.77 lakh loss in the previous year. The company generated zero revenue from operations during the period.

Total income stood at ₹11.18 lakh, derived entirely from other income sources such as interest on deposits and miscellaneous receipts. This compares to total income of ₹19.00 lakh in FY25, which included ₹18.50 lakh from scrap sales.

Total expenses rose to ₹55.85 lakh from ₹38.77 lakh in the prior year. Depreciation and amortization expenses more than doubled to ₹16.15 lakh from ₹8.11 lakh. Employee benefit expenses increased to ₹9.41 lakh from ₹8.31 lakh, while other expenses, including legal and professional charges of ₹9.15 lakh, contributed to the higher burn rate.

What the Numbers Show

The divergence between rising expenses and stagnant income highlights the structural cost burden on an idle asset base. With zero operational revenue, the entire ₹11.18 lakh income was insufficient to cover even half of the ₹55.85 lakh in total expenditures. The doubling of depreciation charges indicates that the company continues to carry significant fixed assets on its balance sheet despite having no production or sales activity, accelerating the erosion of its already negative net worth.

Balance Sheet and Compliance

As of March 31, 2026, total assets decreased to ₹250.57 lakh from ₹303.78 lakh in the previous year. Cash and cash equivalents dropped sharply to ₹35.62 lakh from ₹81.13 lakh, reflecting a net cash outflow of ₹44.52 lakh for the year. Long-term borrowings remained at ₹255.57 lakh, primarily comprising unsecured loans from directors and related parties.

The secretarial audit report highlighted significant regulatory non-compliances. The company failed to file financial statements with the Ministry of Corporate Affairs for four consecutive years, leading to the disqualification of all directors under Section 164(2) of the Companies Act, 2013. Other lapses included non-filing of quarterly results with the stock exchange and failure to maintain promoter holdings in demat mode.

AGM Details and Director Re-appointment

The primary agenda for the upcoming meeting includes the adoption of the Balance Sheet as at March 31, 2026, and the Profit and Loss Account for the year ended on that date. Shareholders will also vote on the re-appointment of Mr. G.S. Sandhu (DIN: 00053527), who retires by rotation and offers himself for re-appointment as a Director.

Mr. Sandhu, aged 78, has been associated with the company since its inception in 1990. He holds a B.Sc. from Sr. Cambridge and possesses over 35 years of experience in the food business. He currently holds 16,58,562 shares in Tarai Foods Limited and serves as the Managing Director without remuneration. He also holds directorships in Tarai Farmlands Private Limited and Suraiya Exports Private Limited.

Remote e-voting facility will be available from September 25, 2026, to September 27, 2026, via the CDSL e-voting system.

tarai foods reported a widened net loss of ₹44.7 lakh for the financial year ended March 31, 2026, compared to a net loss of ₹19.8 lakh in the previous year. The company recorded nil revenue from operations for the year, while total income stood at ₹11.2 lakh, down from ₹19.0 lakh in FY25. The basic and diluted earnings per share (EPS) for the year were reported at -0.29, worsening from -0.13 in the prior year.

The Board of Directors, at its meeting held on May 30, 2026, approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. The results were reviewed and recommended by the Audit Committee. The statutory auditors issued an audit report stating that the financial results give a true and fair view in conformity with the recognition and measurement principles laid down in the applicable accounting standards.

Financial Performance

For the quarter ended March 31, 2026, the company reported a net loss of ₹5.0 lakh, an improvement from the net loss of ₹11.3 lakh in the preceding quarter ended December 31, 2025. Total income for the quarter was ₹9.6 lakh, compared to nil in the previous quarter. Expenses for the quarter totaled ₹14.6 lakh, driven primarily by employee benefit expenses, depreciation, and other operational costs.

Cash Flow and Balance Sheet

The company’s cash and cash equivalents decreased to ₹36.62 lakh as of March 31, 2026, from ₹81.14 lakh in the previous year. Net cash used in operating activities was ₹28.71 lakh, while net cash used in financing activities amounted to ₹17.03 lakh, primarily due to the repayment of unsecured loans. The total equity attributable to equity shareholders stood at a negative ₹311 lakh, reflecting the accumulated losses.

Tarai Foods noted that its operations involve the manufacturing of fresh, frozen foods and vegetables, and there are no reportable segments as per Ind AS-108. Previous figures have been regrouped or reclassified where necessary to conform to the current period presentation.