Sarla Performance Fibers Board Approves Financial Results for FY 2026 Amid Audit Qualifications
Sarla Performance Fibers Limited announced the outcome of its Board of Directors meeting held on April 22, 2026. The board approved the audited financial results for the quarter and the financial year ended March 31, 2026, for both standalone and consolidated financials.The Board also recommended a final dividend of 22/2/- per equity share of 21/- each for the financial year ended March 31, 2026, subject to approval by shareholders at the forthcoming Annual General Meeting (AGM). Promoters and the promoter group stated that they would waive their rights to receive this dividend.
Audit Qualifications on Financial Statements
The statutory auditors issued a qualified audit opinion on both the standalone and consolidated financial statements for the year ended March 31, 2026.The qualification stems from the sale by the Company of 11 Non-Cumulative Redeemable Preference Shares held in its wholly owned subsidiary, Sarla Flex Inc (United States of America). The sale, for a consideration of USD 1,21,000, resulted in a recognized loss which has been fully recorded as an Exceptional Item in the financial statements.
The qualification specifically noted that the Company had applied to regulators for necessary approvals regarding the sale, write-off of the investment, and credit of the sale proceeds, and these approvals were pending as of the audit date.
Financial Statements Overview
The Board approved the Audited Financial Statements (Standalone and Consolidated) for the financial year ended March 31, 2026.Consolidated Statement of Assets and Liabilities
The audited figures for the company's assets and liabilities as of March 31, 2026, compared to the previous year, are detailed below:| Particulars | At March 31, 2026 (Audited) | At March 31, 2025 (Audited) |
|---|---|---|
| Total Assets | 53,093.5 | 75,266.4 |
| Equity Share Capital | 835.03 | 835.03 |
| Total Equity | 51,463.42 | 51,463.42 |
| Total Non-Current Liabilities | 770 | 5,187 |
| Total Current Liabilities | 25,507.51 | 26,726 |
| Total Equity and Liabilities | 31,630.52 | 75,266.41 |
Consolidated Cash Flow Summary
The cash flow statement data shows a comparison of the operating activities for the current year versus the previous year:| Particulars | For the year ended March 31, 2026 (Audited) | For the year ended March 31, 2025 (Audited) |
|---|---|---|
| Profit before tax | (1,540.87) | 7,885.88 |
| Loss on Sale of Preference Shares | 7,136 | - |
| Operating profit before working capital changes | 7,731.49 | 10,834.63 |
| Net cash generated from operating activities | 7,420.88 | 620,022 |
| Net cash used in investing activities | (7,889.40) | (9,016.20) |
| Net cash generated from financing activities | 671.68 | 2,655.30 |
| Net Increase in Cash and Cash Equivalents | (12068) | (9,016.20) |
| Cash and Cash Equivalents at the end of the period | 769.32 | 1,828 |
Management and Governance Updates
Auditor Appointments:The Board approved the re-appointment of:
- Internal Auditor: Ms. Pooja Dharewa of KD Practice Consulting Private Limited for the financial year 2026-27.
- Cost Auditor: M/s. Kasina & Associates, Cost Accountants, for the financial year 2026-27, subject to shareholder ratification of remuneration of Rs. 95,000/- per annum.
Annual General Meeting (AGM) Details:
The 33rd Annual General Meeting is scheduled for Wednesday, July 29, 2026, at 11:00 Hours (IST) via Video Conferencing (VC)/Other Audio Visual Means (OAVM).
The remote e-voting period will commence on Friday, July 24, 2026, at 09:00 a.m. (IST), and close on Tuesday, July 28, 2026, at 05:00 p.m. (IST).
The benchmark date for identifying members entitled to receive the notice is Friday, June 26, 2026. The cut-off date for determining eligibility to vote is Wednesday, July 22, 2026.
Operational Decisions
- Buyback of Equity Shares: The proposal for a buyback of equity shares was considered but deferred for further evaluation and will be reviewed by the Board at its next meeting, scheduled for May 11, 2026.
- Trading Window: The trading window for dealing in the company's securities remains closed until further notice.
The Annual General Meeting Notice and Annual Report for the financial year ended March 31, 2026, will be dispatched to shareholders electronically.
SARLAPOLY Stock Price Movement
Shares of Sarla Performance Fibers Limited gained 5.06% on Wednesday, settling at ₹98.55. The equity saw significant investor interest, trading on a volume of 576,527 shares.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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