Audited Financial result for the year ended 31.03.26
Awaiting price reaction for this filing.
Simplex Mills Company Ltd reported a net loss for FY2025-26 with negative operating cash flow of Rs 37.52 lakhs. The company's balance sheet shows serious concerns with negative total equity of Rs 365.02 lakhs (up from Rs 347.83 lakhs), indicating liabilities exceed assets. Borrowings stand at Rs 300.15 lakhs. The statutory auditor issued an unmodified opinion but included an Emphasis of Matter noting that loans and advances to a company with eroded net worth have not been impaired, though management believes these are recoverable. Cash and cash equivalents declined from Rs 10.20 lakhs to Rs 8.06 lakhs during the year.
The company is technically insolvent with negative equity and negative operating cashflows, raising serious going concern doubts. Shareholders face significant risk as assets are insufficient to cover liabilities. The emphasis of matter on unrecovered loans to an entity with eroded net worth adds further uncertainty.