Modella Woollens Ltd reported a net loss of Rs 19.95 lakh for FY 2025-26, up from Rs 17.22 lakh in the previous year. The company's statutory auditors have issued a 'going concern' warning, noting that the company's net worth is fully eroded and current liabilities exceed assets. With minimal business operations and only three employees remaining, the Board is currently exploring options to revive business activities.
Modella Woollens FY26 Results and Auditor Warning
Net loss for FY26 stands at Rs 1,995.30 thousand; auditor warns of going concern uncertainty.
Reader Takeaway: Company net worth is fully eroded and operations are minimal, raising significant risks for minority shareholders.
What just happened
Modella Woollens Ltd has released its financial results for the year ended March 31, 2026, reporting a net loss of Rs 1,995.30 thousand. This marks an increase in losses compared to the Rs 1,722.22 thousand loss recorded in the previous fiscal year. Other income, generated primarily through fees and commissions, reached Rs 688.12 thousand.
Why this matters
The company’s statutory auditor, Kochar & Associates, has formally flagged a material uncertainty regarding the company's ability to continue as a going concern. The audit report explicitly states that the company's net worth has been entirely eroded and current liabilities have surpassed current assets as of the balance sheet date.
Business and Operational Status
Operationally, the company remains largely inactive. The Directors’ Report confirms that no significant business was conducted during the review period outside of minor fee-based income. The firm currently employs only three individuals: the CEO, the CFO, and the Company Secretary. Management stated they are evaluating options to restart operations and raise capital to meet future obligations.
Corporate Governance
Mr. Sandeep P. Shah, retiring by rotation, has offered himself for re-appointment at the 64th Annual General Meeting scheduled for September 30, 2026. The company reported no pending litigation impacting its financial health, and all related party transactions were conducted at arm's length.
What to track next
Investors should monitor the outcome of the 64th AGM and any concrete disclosures regarding the management's plan to secure funding or commence new business ventures, as the current operational status is extremely limited.