Elgi Rubber Company Limited has informed the Exchange about reversal of interest receivable from overseas wholly owned subsidiaries
ELGIRUBCO · price
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The Board approved reversal of Rs.16.43 million interest receivable from two overseas wholly-owned subsidiaries (Elgi Rubber Company LLC, USA and Borrachas e Equipamentos Elgi Ltda, Brazil) to reduce their interest burden and improve their financial position. The company reported standalone revenue from operations of Rs.5,948 lakhs for Q4 and Rs.23,627 lakhs for FY ended March 2026. However, the company posted a standalone loss after tax of Rs.2,492 lakhs for Q4 and Rs.11,495 lakhs for the full year, primarily due to exceptional items including Rs.5,442 lakhs impairment on loans to a subsidiary under liquidation (Rubber Resources B.V., Netherlands) and Rs.3,658 lakhs impairment of investment in the same subsidiary. The Board also re-appointed Sudarsan Varadaraj as Chairman and Managing Director and Harsha Varadaraj as Whole-time Director for another 5 years each. Statutory auditors issued an unmodified opinion on the financial results.
The company reported significant losses for FY2026 due to impairments related to the liquidation of its Netherlands step-down subsidiary. The reversal of interest receivable is an accounting adjustment that will not impact the parent company's cash flows but will support subsidiary financials. Shareholders should note the substantial exceptional items affecting profitability.