Aananda Lakshmi Spinning Mills reported a total comprehensive loss of Rs 2.99 crore for FY 2025-26, down from a profit in the previous year. The company's audit report contains qualifications regarding unpaid tax interest and long-pending trade payables. Management has re-appointed its Managing Director for a five-year term despite the challenging financial results and ongoing challenges in its core spinning business.
Aananda Lakshmi Spinning Mills Reports FY 2025-26 Comprehensive Loss of Rs 2.99 Crore
Revenue dropped to Rs 2.03 crore, while discontinued operations recorded a loss of Rs 4.64 crore.
Reader Takeaway: Weak operational revenue and audit qualifications regarding tax provisioning and long-standing liabilities weigh on outlook.
What just happened
Aananda Lakshmi Spinning Mills held its Annual General Meeting on September 30, 2026. The board confirmed the re-appointment of Mr. Devender Kumar Agarwal as Managing Director for a five-year term ending September 2031 at a monthly salary of Rs 1.25 lakh. The company reported no dividend for the fiscal year.
Why this matters
The company transitioned from a profit of Rs 3.09 crore in FY 2024-25 to a total comprehensive loss of Rs 2.99 crore in FY 2025-26. Auditors issued qualifications regarding a Rs 20.98 lakh shortfall in interest provisions for tax deducted at source (TDS), noting this resulted in a profit overstatement of Rs 3.30 lakh. Additionally, long-pending trade payables of Rs 1.37 crore have exceeded their limitation period, raising concerns over financial clarity.
The backstory
The company's original spinning division has remained discontinued since September 2020, with those assets currently classified as held for sale. The business has shifted its focus to textile trading and real estate/land plotting, currently maintaining a small workforce of only 6 employees.
Risks to watch
Auditors identified material weaknesses in internal controls regarding the recognition of commission income. Management maintains that commission income is now validated via year-end confirmations, but investors should monitor the resolution of the pending statutory dues and the reconciliation of long-standing trade payables to ensure liquidity is not compromised.
What to track next
The company expects to verify statutory interest with authorities in the next fiscal year. Shareholders should look for updates on the disposal of assets from the discontinued spinning division, which may provide much-needed capital to address current operational and compliance issues.