Akshar Spintex Limited, a cotton yarn spinning company, has reported a significant increase in net loss for the quarter ended September 30, 2025. The company's financial performance shows a challenging period marked by revenue decline and increased losses.

Financial Highlights

Key Points

Quarterly Performance

• Widening Losses: Akshar Spintex's net loss for Q2 FY2026 increased substantially to Rs 332.79 lakhs, compared to a loss of Rs 95.65 lakhs in the same quarter of the previous year, representing a 247.92% increase in losses.
• Revenue Decline: The company's revenue from operations decreased to Rs 2,234.18 lakhs from Rs 2,319.35 lakhs year-over-year, marking a 3.67% decline.

Half-Year Performance

• For the half-year period, the company posted a net loss of Rs 441.28 lakhs against Rs 107.20 lakhs in the corresponding period last year.
• Half-year revenue increased to Rs 4,852.98 lakhs from Rs 4,397.17 lakhs.

Capital Structure

• Akshar Spintex has a paid-up equity share capital of Rs 7,874.68 lakhs.

Auditor's Concerns

The company's auditor, HB Kalaria & Associates, has raised significant concerns in their review report:

1. Fixed Assets Verification: The company failed to conduct physical verification of fixed assets during the review period and has not maintained a register of fixed assets.
2. Inventory Inspection: No inspection of inventories was carried out during the period under review.
3. Limited Assurance: Due to these issues, the auditors were unable to obtain sufficient appropriate review evidence regarding the quantities and condition of fixed assets and inventories.

Management's Response

The company's management has not provided any specific comments addressing the auditor's concerns in the available LODR data.

Outlook

The widening losses and revenue decline, coupled with the auditor's concerns, indicate significant challenges for Akshar Spintex. The company may need to address these issues promptly to improve its financial health and restore investor confidence.

Investors and stakeholders should closely monitor the company's future actions, particularly regarding the implementation of proper asset and inventory management practices, as well as strategies to improve operational performance and profitability.

Akshar Spintex Limited has announced a significant change in its corporate structure with the appointment of Miss Namrata Jagdishbhai Seta as the new Company Secretary and Compliance Officer. The decision was made during a board meeting held on October 18, 2025, at the company's registered office in Jamnagar, Gujarat.

Key Appointment Details

Professional Background

Miss Seta brings a wealth of experience to her new role at Akshar Spintex Limited:

• Education: Bachelor of Commerce, Company Secretary qualification
• Experience: Over 9 years of practicing experience
• Expertise: Corporate Laws, Corporate Governance, and SEBI-related matters
• Professional Affiliation: Associate member of the Institute of Company Secretaries of India

Appointment Process and Compliance

The appointment of Miss Seta was conducted in accordance with regulatory requirements:

1. Recommended by the Nomination and Remuneration Committee
2. Approved by the Board of Directors
3. Complies with Section 203 of the Companies Act, 2013
4. Fulfills requirements of Regulation 6(1) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

Corporate Governance Implications

This appointment underscores Akshar Spintex Limited's commitment to maintaining strong corporate governance practices. As the Company Secretary and Compliance Officer, Miss Seta will play a crucial role in ensuring the company's adherence to regulatory standards and in facilitating effective communication between the company, its board, and its stakeholders.

The addition of Miss Seta to the company's leadership team is expected to strengthen Akshar Spintex Limited's corporate secretarial functions and enhance its compliance framework.

Conclusion

The appointment of Namrata Jagdishbhai Seta as Company Secretary and Compliance Officer marks an important step for Akshar Spintex Limited in reinforcing its corporate governance structure. With her extensive experience in corporate laws and SEBI-related matters, Miss Seta is well-positioned to contribute to the company's regulatory compliance and corporate affairs management.