Outcome of the Board Meeting for declaration of the Financial results and Allotment pursuant to the Capital Reduction
Awaiting price reaction for this filing.
Charms Industries Ltd reported its FY2025-26 audited standalone financial results for the year ended March 31, 2026. The company posted a net loss of Rs 19.99 lakhs, compared to a loss of Rs 18.63 lakhs in the previous year, showing continued losses. Total income was Rs 3.21 lakhs. The company has undergone a capital reduction approved by NCLT on March 26, 2026, reducing share capital from Rs 4.10 crore (41,06,100 shares of Rs 10 each) to Rs 41.06 lakh (41,06,100 shares of Rs 1 each), effective April 21, 2026. The balance sheet shows total equity has turned negative at Rs -18.15 lakhs, down from Rs 1.85 lakhs in the prior year, indicating severe erosion of net worth.
The company continues to report losses with a critically weak balance sheet showing negative shareholders' equity. The capital reduction was executed to cancel accumulated losses. Auditors issued a clean (unmodified) opinion, but shareholders should be cautious given the negative equity position and ongoing losses.