as per letter attached
Awaiting price reaction for this filing.
Simplex Mills Company Ltd reported very weak Q1 FY26 results. Revenue from operations fell sharply to about ₹3.89 lakhs, down from roughly ₹15.90 lakhs in the same quarter last year — a decline of around 75% year-on-year. Total income of ₹19.52 lakhs was largely propped up by 'other income' of ₹15.63 lakhs, with negligible core operating revenue. The company posted a net loss of ₹2.01 lakhs for the quarter, wider than the ₹0.89 lakh loss in Q1 FY25. Paid-up equity capital stands at ₹300.04 lakhs while other equity is deeply negative at about (₹647.87) lakhs, meaning the company's net worth is fully eroded. The statutory auditor, Khandelwal & Mehta LLP, issued an unmodified limited review conclusion but added an explicit 'Emphasis of Matter' flagging the eroded net worth, accumulated losses, and material uncertainty around the company's ability to continue as a going concern. Management stated the financials are still prepared on a going concern basis.
This is a financially distressed micro-cap textile company. The auditor's going-concern flag, fully eroded net worth, and steep revenue decline are serious red flags for shareholders. The stock is likely to see negative sentiment, and the company may require fresh capital infusion, asset sales, or strategic restructuring to stay solvent.