Cedaar Textile Limited Approves FY 2026 Results Amid Audit Disclaimer on Financial Records

Cedaar Textile Limited Approves FY 2026 Results Amid Audit Disclaimer on Financial Records​

Cedaar Textile Limited, a textile manufacturing company, announced that its Board of Directors approved the Audited Financial Results for the half year and full financial year ended March 31, 2026. However, the company's statutory auditors, M/s. H B Kalaria & Associates, issued an Audit Report with a significant disclaimer of opinion regarding the financial results.

The company held its Board of Directors meeting on May 30, 2026, during which the audited financial results were considered and approved. The statutory auditors’ report highlighted multiple areas where they were unable to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion.

Reasons for Audit Disclaimer​

The statutory auditors detailed several significant issues contributing to the disclaimer of opinion. These matters include:

1. Data Loss: The accounting data and financial records for the period up to September 30, 2025, were unavailable due to the loss of data from the company’s accounting software system. This absence of records hindered verification of opening balances and related transactions.
2. Going Concern Concerns: The auditors noted that the company defaulted in repaying loan installments and interest dues for a period of two months. Furthermore, the company failed to provide sufficient information to evaluate the appropriateness of the going concern assumption underlying the financial results.
3. Verification Shortfalls: The auditors were unable to obtain sufficient evidence because the company had not conducted physical verification of its property, plant, and equipment, nor had it physically verified its inventories.
4. Confirmations: Reconciliation and confirmations of balances with trade receivables, trade payables, and related parties were incomplete.
5. Inventory Write-Down: A major point of concern was the recognition of a loss of Rs. 84 crore. This write-down resulted from liquidating approximately 80-85% of the total inventory as scrap. The auditors noted that the write-down was linked to severe deterioration of the export-designated dyed yarn inventory, a situation compounded by the complete halt in the export order pipeline due to international tariffs and war.

Financial Highlights (As of March 31, 2026)​

The financial statements provided by Cedaar Textile Limited show the following key figures for the year ended March 31, 2026 (in Rs. Lacs):

Statement of Profit and Loss (Consolidated):

Statement of Assets and Liabilities:

Cash Flow from Operating Activities:

Note: Figures are extracted from the respective financial statements provided by the company.

CEDAAR Stock Price Movement​

On Friday, Cedaar Textile Limited shares edged higher, closing at ₹26.00 after gaining 3.17% for the day. Trading saw a notable volume of 8,000 shares transacted, lending underlying strength to the stock's upward movement.