Winsome Yarns Limited , a textile company currently undergoing Corporate Insolvency Resolution Process (CIRP), has failed to submit its unaudited financial results for the quarter and half-year ended September 30, 2025, within the regulatory timelines. The company cited its ongoing CIRP and operational challenges as the primary reasons for the delay.

Key Developments

• Winsome Yarns entered CIRP on December 22, 2023, following an application by Edelweiss Asset Reconstruction Company Limited.
• The company is currently not fully operational and lacks sufficient funds.
• Most employees have left the company since the initiation of CIRP.
• Powers have been transferred from the Board of Directors to the Resolution Professional under insolvency regulations.

Current Status

The Resolution Professional, ARCK Resolution Professionals LLP, provided the following updates:

1. The Committee of Creditors (COC) has approved a Resolution Plan submitted by Mohini Health & Hygiene Limited.
2. An application for approval of the COC-approved Resolution Plan has been filed with the National Company Law Tribunal, Chandigarh Bench, and is pending adjudication.

Reasons for Delay in Financial Results

Company's Statement

Anil Kohli, Designated Partner & Authorized Signatory of ARCK Resolution Professionals LLP, acting as the Resolution Professional, stated, "Despite proper planning and sincere efforts in this direction, we are not in a position to finalize the Financial Results for the quarter and half year ended 30.09.2025."

The company has assured that it is making its best efforts to finalize the financial results and will submit them at the earliest possible time.

Investors and stakeholders are advised to keep these factors in mind when considering Winsome Yarns Limited's current financial position and future prospects. The ongoing CIRP process and its outcome will likely have a significant impact on the company's future operations and financial stability.

Winsome Yarns Limited , currently undergoing Corporate Insolvency Resolution Process (CIRP), has reported a net loss of Rs 1,730 lakhs for the financial year ended March 31, 2025. This marks an increase from the previous year's loss of Rs 1,094 lakhs, highlighting the company's ongoing financial challenges.

Financial Performance

The company's audited financial results reveal:

The negative net worth of Rs 43,721.00 lakhs as of March 31, 2025, underscores the severity of the company's financial distress.

Auditor's Concerns

The company's auditors have issued a qualified opinion, citing several material concerns:

1. Going Concern Uncertainty: The auditors highlighted material uncertainty about the company's ability to continue as a going concern, given its accumulated losses, negative net worth, and continuous losses.

2. Unprovided Interest: The financial statements do not account for interest expenses of Rs 26,434.00 lakhs on borrowings for the year ended March 31, 2025. The aggregate unprovided interest till March 2025 stands at Rs 1,53,285.00 lakhs.

3. Internal Control Systems: The auditors noted that the company's internal control systems need further strengthening, particularly in areas of purchases, consumption of materials, and invoicing.

4. Unconfirmed Balances: Confirmation and reconciliation of various balances, including accounts receivable, payable, and bank balances, are pending.

Resolution Process Update

The Committee of Creditors has approved a resolution plan submitted by Mohini Health & Hygiene Limited. As part of this process:

• A performance security of Rs 20.20 crores has been deposited.
• The Resolution Professional has filed an application for approval of the plan with the National Company Law Tribunal, Chandigarh Bench.

Management's Stance

Despite the auditor's concerns, the management has prepared the financial statements on a going concern basis. They attribute the company's financial stress to factors beyond their control, including non-performance of commitments by lenders.

The company disputes the liability of its borrowings and has filed a counter-claim against the lenders, which is pending adjudication before the Debt Recovery Tribunal, Chandigarh.

As Winsome Yarns navigates through this critical phase, stakeholders await the outcome of the resolution process and the potential turnaround of the company's fortunes.