Sri Lakshmi Saraswathi Textiles Reports Rs 707.33 Crore Loss for H1 2025, Auditors Raise Going Concern Issues

Sri Lakshmi Saraswathi Textiles (Arni) Limited , a textile manufacturer based in Chennai, has reported a net loss of Rs 707.33 crore for the first half of the fiscal year 2025-26, ending September 30, 2025. This loss marks an improvement from the Rs 1,146.62 crore loss reported in the same period last year.

Financial Performance

The company's financial results for the second quarter and half-year ended September 30, 2025, reveal several key points:

Particulars	H1 2025-26 (Rs in crore)	H1 2024-25 (Rs in crore)	Change (%)
Total Income from Operations	458.88	468.59	-2.07
Net Loss	707.33	1146.62	-38.31
Loss per Share (Rs)	21.22	34.40	-38.31

The total income from operations decreased marginally by 2.07% to Rs 458.88 crore in H1 2025-26 from Rs 468.59 crore in the corresponding period of the previous year.

Auditor's Concerns

The company's auditors, M/s. S. Viswanathan LLP, have raised significant concerns in their limited review report:

Accumulated Losses: The auditors highlighted that accumulated losses reached Rs 9,195.89 crore as of March 31, 2025.
Negative Net Worth: Due to consistent losses, the company's net worth remains negative as of September 30, 2025.
Going Concern Issues: The auditors expressed doubt about the company's ability to continue as a going concern, citing losses incurred over the past three years.
Statutory Dues: The report noted that Rs 106.71 crore towards Employee Provident Fund and Rs 6.05 crore towards Employee State Insurance have not been remitted to the appropriate authorities.

Management's Response

In response to the auditors' concerns, Sri Lakshmi Saraswathi Textiles' management has provided the following clarifications:

They have assured that the pending statutory dues, including provident fund and state insurance, will be remitted to the appropriate authorities in the coming period.
Despite the losses and eroded net worth, the company continues its business operations at an optimal level.
Management expressed confidence in future profitability, citing expected favorable changes in industrial conditions.
The company continues to prepare its financial statements on a going concern basis, reflecting their belief in future viability.

Looking Ahead

While the reduction in net loss compared to the previous year might be seen as a positive sign, the company's financial position remains challenging. The management's ability to turn around the company's performance and address the auditors' concerns will be crucial for Sri Lakshmi Saraswathi Textiles' future prospects.

Investors and stakeholders will likely keep a close watch on the company's efforts to improve its financial health, particularly its ability to generate profits and meet its statutory obligations in the coming quarters.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.01%	-2.43%	-9.87%	-12.44%	-14.90%	+241.50%

Sri Lakshmi Saraswathi Textiles (Arni) Limited , a prominent player in the textile industry, has announced a significant change in its corporate structure. The company has appointed D. Krishnamoorthy as its new Company Secretary and Compliance Officer, effective November 1, 2025.

Key Appointment Details

Aspect	Details
Appointee	D. Krishnamoorthy
Position	Company Secretary & Compliance Officer
Effective Date	November 1, 2025
Qualifications	FCA (Chartered Accountant), FCS (Company Secretary)
CS Membership No.	F12410
Experience	Over 4 decades

Professional Background

D. Krishnamoorthy brings a wealth of experience to his new role at Sri Lakshmi Saraswathi Textiles. With dual qualifications as both a Chartered Accountant and a Company Secretary, Krishnamoorthy possesses a comprehensive understanding of financial management and corporate governance. His extensive career spanning more than four decades is expected to be a valuable asset to the company.

Corporate Governance Implications

This appointment aligns with the company's commitment to maintaining robust corporate governance practices. As the Company Secretary and Compliance Officer, Krishnamoorthy will play a crucial role in ensuring that Sri Lakshmi Saraswathi Textiles adheres to regulatory requirements and maintains transparency in its operations.

Management Statement

Balakrishna S, the Managing Director of Sri Lakshmi Saraswathi Textiles (Arni) Limited, made the official announcement. The company has confirmed that Krishnamoorthy is not related to any of the company's directors, underlining the appointment's adherence to corporate governance best practices.

Regulatory Compliance

The appointment has been disclosed in accordance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. This timely disclosure demonstrates the company's commitment to keeping its shareholders and the market informed about significant corporate developments.

Sri Lakshmi Saraswathi Textiles (Arni) Limited continues to strengthen its management team with this strategic appointment. Shareholders and market observers will likely watch closely to see how Krishnamoorthy's extensive experience contributes to the company's corporate governance and compliance efforts in the coming years.