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.

Rajesh Sharma and associated persons have increased their stake in Winsome Yarns , crossing the 5% threshold through open market transactions. This development has triggered disclosure requirements under SEBI regulations.

Stake Increase Details

The Rajesh Sharma group's total holding in Winsome Yarns has risen from 3,500,000 shares (4.95%) to 3,580,759 shares (5.06%). This increase was primarily due to the acquisition of 80,759 shares by Dnyaneshwar Trading & Investments Pvt. Ltd on August 7.

Shareholding Breakdown

The current shareholding structure of the Rajesh Sharma group in Winsome Yarns is as follows:

Regulatory Implications

As the group's stake has surpassed the 5% mark, it has triggered disclosure requirements under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. Rajesh Sharma, as the acquirer, has duly filed the necessary disclosures with the BSE Limited and the National Stock Exchange of India Limited.

Company Background

Winsome Yarns' equity share capital remains unchanged at Rs. 707,072,290. The company's shares are listed on both the BSE (Script Code: 514348) and the National Stock Exchange of India Limited.

Acquisition Details

The acquisition was executed through open market transactions. Dnyaneshwar Trading & Investments Pvt. Ltd, part of the Rajesh Sharma group, purchased the additional 80,759 shares on August 7.

It's worth noting that Rajesh Sharma does not belong to the Promoter/Promoter group of Winsome Yarns, as per the disclosure filed.

This stake increase by the Rajesh Sharma group may be of interest to market watchers and other shareholders of Winsome Yarns.