Winsome Yarns Limited held its 36th Annual General Meeting on September 28, 2026, where shareholders approved the audited financial statements for FY26 and several key governance resolutions.

The meeting, conducted via Video Conferencing, saw the adoption of the Board of Directors and Auditors' reports alongside the regularization of multiple directors, including Vipan Kumar as Managing Director and Avnish Bansal as Non-executive Chairman. Members also authorized an increase in the Board's borrowing powers and approved related party transactions with Dhananya Capital Private Limited.

Governance and director appointments

Shareholders passed special and ordinary resolutions to regularize the appointments of several additional directors. This included confirming Vipan Kumar as Managing Director and Avnish Bansal as Non-executive Chairman and Non-independent Director. Mrs. Parul Bansal was regularized as a Women Non-executive Director, while Mahesh Fogla, Sanjeev Khubchand Nahar, and Bibhudutta Satpathy were approved as Non-executive Independent Directors.

Additionally, the appointment of Ms. Pooja Garg to an office or place of profit was approved via a special resolution. The meeting noted that all directors were present except Mr. Mahesh Fogla.

Financial and operational authorizations

The Board received approval to increase its borrowing powers under Section 180(1)(c) of the Companies Act, 2013. Related resolutions allowed for the creation of charges or mortgages on company assets under Section 180(1)(a) and the extension of guarantees towards indebtedness availed by Dhananya Capital Private Limited, a related party.

Other significant approvals included:

• Adoption of amended Memorandum of Association and new Articles of Association.
• Shifting of the registered office from Chandigarh to Punjab.
• Reclassification of certain promoter group shareholders to public shareholders.
• Approval of omnibus related party transactions.

Meeting details and attendance

The AGM commenced at 1:00 pm and concluded at 1:30 pm. A total of 43 members attended virtually. Remote e-voting facilities were available from September 24 to September 27, 2026. No queries were raised by members during the Chairman's overview of the company.

Winsome Yarns Limited (BSE: WINSOME) reported a net loss of ₹3.32 crore for the quarter ended June 30, 2026 (Q1FY27), compared to a loss of ₹3.28 crore in the corresponding period last year. The textile company, currently undergoing Corporate Insolvency Resolution Process (CIRP), recorded zero revenue from operations during the quarter.

The Board of Directors approved the unaudited standalone financial results on September 23, 2026. The statutory auditors, Dhana & Associates, issued a qualified conclusion on the financials, citing accumulated losses exceeding net worth and negative cash flows. The company’s affairs are managed by a Monitoring Committee following the National Company Law Tribunal (NCLT) approval of a resolution plan submitted by Mohini Health & Hygiene Limited on April 16, 2026.

Financial Performance Overview

The company’s total revenue stood at ₹37 lakh, driven entirely by other income, as income from operations was nil. This contrasts with ₹48 lakh in total revenue for Q1FY26, which included ₹18 lakh from operations. Total expenses rose to ₹3.69 crore in Q1FY27, up from ₹3.77 crore in the prior year quarter, primarily due to depreciation and amortization costs.

Insolvency and Resolution Status

The NCLT Chandigarh Bench admitted Winsome Yarns into CIRP on December 22, 2023, following an application by Edelweiss Asset Reconstruction Company Limited. The approved resolution plan, valued at ₹162.90 crore, provides for the infusion of funds for revival and operations. Implementation is currently underway under the supervision of the Monitoring Committee.

The auditors noted that the financial results are prepared on a going concern basis considering the approved resolution plan. However, they highlighted that the accounts are understated due to pending reconciliations of receivables, payables, and bank balances. The company has not provided for interest and penalty on borrowings, pending final settlement under the resolution plan.

Operational and Legal Developments

The company reported a theft of approximately ₹59.20 lakh from a transformer at its spinning mill complex in Dera Bassi, Punjab. An FIR has been registered, and an insurance claim has been filed. Additionally, the registered office was vacated by the Chandigarh Administration on December 30, 2024, and the company is currently operating from its knitting unit in Mohali.

What the Numbers Show

A critical divergence exists between the company’s operational stagnation and its fixed cost burden. With zero revenue from operations in Q1FY27, the entire loss of ₹3.32 crore is attributable to fixed costs, primarily depreciation and amortization (₹2.42 crore) and other expenses (₹1.10 crore). The slight increase in net loss YoY (from ₹3.28 crore to ₹3.32 crore) despite lower total expenses indicates that the reduction in other operating costs was offset by the re-emergence of finance costs (₹7 lakh) and higher employee benefits, signaling that the company remains structurally unprofitable without immediate operational revival funded by the resolution plan.