Rama Paper Mills Posts Significant Losses; Audit Highlights Financial Disclosures and Operational Challenges

Rama Paper Mills Posts Significant Losses; Audit Highlights Financial Disclosures and Operational Challenges​

Rama Paper Mills Ltd has released its audited financial results for the quarter and year ended March 31, 2026. The company reported significant financial losses, reflecting material uncertainties regarding its ability to continue as a going concern.

The audit of the quarterly and year-to-date financial statements revealed several areas warranting qualified observation, impacting the company's financial standing. These issues included inconsistencies in interest provision on secured inter corporate deposits and vehicle loans. Furthermore, the management did not undertake physical verification of inventories or Property, Plant & Equipment (PPE) during the period, rendering the effect of these items uncertain to auditors.

Financial statements show that as of March 31, 2026, the company had accumulated losses totaling 7,249.26 lakhs. For the quarter ended March 31, 2026, the company incurred a net loss of 140.92 lakhs, while for the full year ending March 31, 2026, the net loss was 614.49 lakhs.

The audited financial results also highlighted non-compliance in certain areas related to trade payables and MSMEs (Micro, Small and Medium Enterprises). The company failed to bifurcate its trade payables into those due to MSMEs and others, and did not comply with the filing of MSME-1 for the financial year 2025-26.

Key Financial Status Points:​

• As on March 31, 2026, the company's current liabilities exceeded its Total assets by 3,512.05 lakhs.
• The company recorded a negative net worth of 2,5115.48 lakhs as of March 31, 2026.

Audit and Operational Concerns​

The independent auditor noted that the failure to provide interest on secured Inter Corporate Deposits (two creditors) resulted in potential loss increases of 134.61 lakhs for the quarter and 545.91 lakhs for the year ended March 31, 2026. For a cumulative period spanning from June 8, 2024, to March 31, 2026, the non-provided interest amounted to 990.72 lakhs.

Similarly, not providing interest on vehicle loans from banks led to potential loss increases of 0.59 lakhs for the quarter and 2.71 lakhs for the year ended March 31, 2026; cumulatively totaling 5.96 lakhs for the period to date.

The company's operations are currently managed by the Insolvency Resolution Professional (IRP) on a Going Concern Basis following processes initiated by creditors and NCLT orders. The financial results have been prepared reflecting this operational status.

Financial Performance Comparison (in lakhs)​

The table below provides a comparison of key performance indicators for the quarter ended March 31, 2026, alongside previous periods.


The Cash Flow Statement for the half year ending March 31, 2026, showed Net cash used in operations at (578.40) lakhs, while the net cash generated from investing activities was 759.82 lakhs. The combined result resulted in a net increase/(decrease) in cash and cash equivalents of 182.03 lakhs for the period.

Stock Price Movement​

Rama Paper Mills Ltd shares settled at ₹12.00 on Thursday, reflecting a decline of 3.38% in closing price. The stock remained completely locked throughout the session, with its high and low both registering precisely at ₹12.00.