Audited Financial result for the year 31.03.26
Awaiting price reaction for this filing.
Simplex Mills Company Ltd reported a net loss for FY2025-26 with negative shareholders' equity of Rs 365.02 lakhs, a deterioration from Rs 347.83 lakhs negative equity in the prior year. The company incurred a loss before tax of Rs 17.20 lakhs compared to Rs 3.17 lakhs in the previous year. Operating cash flow remained negative at Rs 39.18 lakhs. The auditors (Khandelwal and Mehta LLP) issued an unmodified opinion but included an Emphasis of Matter drawing attention to loans and advances recoverable from a company whose net worth is eroded, though management believes these are recoverable. Total assets stood at Rs 684.58 lakhs against total liabilities of Rs 1,049.60 lakhs. The company has non-current borrowings of Rs 300.15 lakhs.
The company is in severe financial distress with negative equity and negative operating cash flows. Shareholders should be cautious as the company faces going concern risks given negative net worth and increasing losses. The Emphasis of Matter on recoverability of advances to a company with eroded net worth adds further uncertainty.