Shree Rajasthan Syntex Limited , a textile segment operator, has announced its unaudited standalone financial results for the quarter and half-year ended September 30, 2025, following the completion of a Pre-Packaged Insolvency Resolution Process. The company's board of directors approved these results in a meeting held on November 11, 2025.

Key Highlights

• The company has implemented the NCLT-approved Resolution Plan in its books of accounts.
• Auditors have noted a material uncertainty regarding the company's ability to continue as a going concern.
• An exceptional item in the results relates to the final payment made to lenders for closing the Resolution Process.

Financial Position and Auditor's Concerns

The review report by Doogar & Associates, the company's independent auditors, highlights significant challenges facing Shree Rajasthan Syntex:

• Accumulated losses as of September 30, 2025
• Current liabilities substantially higher than current assets

These conditions have led the auditors to express uncertainty about the company's ability to continue as a going concern. However, the management remains optimistic, citing:

• Expectation of funds from investors
• Possibility of accumulating funds through liquidation of certain non-current assets

Corporate Actions and Compliance

In line with regulatory requirements, Shree Rajasthan Syntex has taken the following steps:

• Closed its trading window from October 1, 2025
• The window will remain closed until 48 hours after the declaration of financial results

Looking Ahead

While the company has completed its Pre-Packaged Insolvency Resolution Process, the auditor's report suggests that Shree Rajasthan Syntex still faces significant financial challenges. The management's ability to secure new funding and potentially liquidate assets may be crucial for the company's future operations.

Investors and stakeholders may want to closely monitor the company's progress in addressing these financial concerns and implementing its post-resolution strategy.

Shree Rajasthan Syntex Limited , a textile company based in Rajasthan, has announced significant corporate actions and financial results following a board meeting held on August 11, 2025.

Capital Increase and Preferential Share Issue

The board of directors has approved an increase in the company's authorized share capital to Rs 47.50 crore. This includes a Rs 13.00 crore increase in authorized equity share capital. The new structure comprises Rs 41.50 crore in equity share capital (4,15,00,000 equity shares of Rs 10 each) and Rs 6.00 crore in preference share capital (6,00,000 non-convertible cumulative redeemable preference shares of Rs 100 each).

In a move to raise funds, the board has given the green light for a preferential issue of up to 1,27,25,000 equity shares at Rs 10 each. This issuance includes:

• 81,25,000 shares to be offered to promoter and non-promoter investors for cash consideration
• 46,00,000 shares to be issued through conversion of existing unsecured loans from promoter and non-promoter groups

The issue price will be determined in accordance with SEBI regulations, and the shares will be subject to a lock-in period as prescribed by SEBI.

Financial Performance

For the quarter ended June 30, 2025, Shree Rajasthan Syntex reported:

The company's performance shows a challenging quarter with expenses outpacing revenue, resulting in a net loss.

Corporate Governance and Leadership

The board made several key decisions regarding corporate governance:

• Reappointment of Mr. Sandeep Kumar Jain and Mrs. Manju Datta as Non-Executive Independent Directors for second terms of 5 years each, effective August 12, 2026, and March 17, 2026, respectively
• Appointment of M/s. HM & Associates as Secretarial Auditors for five years from FY 2025-26 to FY 2029-30
• Reappointment of M/s. K.G. Goyal & Co. as Cost Auditors for FY 2025-26

Annual General Meeting

The 45th Annual General Meeting of Shree Rajasthan Syntex is scheduled for September 10, 2025, at the company's registered office in Dungarpur, Rajasthan.

These corporate actions and financial results reflect Shree Rajasthan Syntex's efforts to strengthen its capital structure and governance while navigating challenging market conditions in the textile sector.