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

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.

Sri Lakshmi Saraswathi Textiles (Arni) Limited , a Chennai-based textile company, has reported a narrowed net loss for the first quarter, amid ongoing financial challenges and auditor concerns about its ability to continue as a going concern.

Financial Performance

The company posted a net loss of ₹3.77 crore for Q1, showing an improvement from the ₹6.19 crore loss reported in the same period last year. However, total income from operations decreased to ₹22.24 crore from ₹23.31 crore year-on-year, indicating a 4.6% decline in revenue.

The company's earnings per share (EPS) stood at ₹-11.31, an improvement from ₹-18.58 in the previous year's corresponding quarter.

Key Expenses

Major expenses for the quarter included:

• Cost of materials consumed: ₹13.34 crore
• Employee benefits: ₹5.41 crore
• Power & fuel costs: ₹3.91 crore

Financial Position and Auditor Concerns

As of March 31, Sri Lakshmi Saraswathi Textiles had accumulated losses of ₹91.96 crore and negative reserves of ₹71.92 crore. This financial position has led to auditors raising concerns about the company's status as a going concern.

The auditors noted in their Limited Review Report that with the additional loss in Q1, the company's net worth remained negative as of June 30.

Outstanding Statutory Dues

The company has outstanding statutory dues, including:

• ₹88.35 lakh towards Employees' Provident Fund
• ₹4.09 lakh towards Employees' State Insurance

Management has assured that these dues, including interest and penal damages, will be remitted to the appropriate authorities in the upcoming quarters.

Management's Perspective

Despite the challenges, the management expressed confidence in the company's future profitability. They cited favorable changes in industrial conditions as a basis for their optimism. The company continues to prepare its accounts and financial statements on a going concern basis, reflecting their belief in the business's viability.

Conclusion

While Sri Lakshmi Saraswathi Textiles has shown some improvement in reducing its quarterly losses, the company continues to face significant financial hurdles. The management's ability to turn around the company's performance in the face of accumulated losses and negative net worth will be crucial for its future sustainability.

Investors and stakeholders will likely keep a close watch on the company's performance in the coming quarters, particularly its ability to generate profits and address the concerns raised by auditors regarding its going concern status.