Veejay Lakshmi Engineering Works Limited has approved a proposal to borrow up to ₹70 crore, exceeding its paid-up share capital and free reserves. The decision, taken at its Board meeting on June 20, 2026, in Coimbatore, requires shareholder approval through a special resolution. This move is aimed at enhancing the company's financial flexibility for future operational needs.

The Board also approved the adoption of a new set of Articles of Association in line with the Companies Act, 2013, replacing the existing ones. Additionally, the directors sanctioned the sale, lease, or mortgage of the whole or substantially the whole of the company's undertakings under Section 180(1)(a) of the Act. These resolutions are subject to ratification by shareholders via a postal ballot.

Postal Ballot Details

To facilitate the approval process, the Board appointed Mr. M. D. Selvaraj, Managing Partner of MDS & Associates LLP, Company Secretaries, as the Scrutinizer. The Postal Ballot Notice will be submitted to the stock exchange in due course to ensure a transparent voting process.

Key Approvals

The meeting, which commenced at 3.30 PM and concluded at 6.15 PM, was conducted under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Veejay Lakshmi Engineering Works Limited reported a net loss of ₹566.96 lakh for the financial year ended March 31, 2026, compared to a net loss of ₹331.48 lakh in the previous year. Revenue from operations for the year increased to ₹8022.75 lakh from ₹7964.93 lakh in FY25. The company recorded a total comprehensive income of -₹613.23 lakh for the standalone results and -₹592.16 lakh for the consolidated results for the year ended March 31, 2026.

Financial Performance

The standalone financial results for the quarter ended March 31, 2026, show a net loss of ₹34.71 lakh on revenue from operations of ₹2444.57 lakh. For the full year, the company reported a loss before tax of ₹549.14 lakh. The Textile Division contributed ₹6320.24 lakh to the segment revenue, while the Engineering Division contributed ₹1705.42 lakh. The Textile Division reported a segment loss before interest and tax of ₹497.84 lakh for the year.

Auditor's Opinion

M/s. N R D Associates, Chartered Accountants, the statutory auditors, issued an audit report with an unmodified opinion on the standalone and consolidated financial results for the year ended March 31, 2026. The auditors stated that the financial statements give a true and fair view of the company's financial position and results of operations in conformity with the Indian Accounting Standards (Ind AS).

Exceptional Items

The company reported exceptional items amounting to -₹5.54 lakh for the year ended March 31, 2026. This expense relates to the statutory impact of new labour codes, which resulted in a one-time increase in the provision for employee benefits. The provision was recognized immediately in the statement of profit and loss as per the guidance issued by the Institute of Chartered Accountants of India (ICAI) under IndAS 19.

Consolidated Results

The consolidated financial results include the accounts of the company's associate, Veejay Sales and Services Limited. The share of profit of the associate for the year ended March 31, 2026, was ₹20.16 lakh. Consolidated revenue from operations for the year stood at ₹8022.75 lakh, with a net loss of ₹566.96 lakh. The consolidated earnings per share (EPS) for the year was -₹11.18 on a basic and diluted basis.