Modern Thread (India) Ltd. — Interim / Quarterly Report 2026

May 30, 2026

Modern Threads (India) Limited

Registered Office :
Modern Woollens, Pragati Path,
BHILWARA-311001 (Rajasthan), INDIA
Phone : +91-1482-241801
E-mail : cs@modernwoollens.com
Website : www.modernwoollens.com
CIN : L17115RJ1980PLC002075

Date: 30.05.2026

The Manager,
Department of Corporate Services
Bombay Stock Exchange Limited
Phiroze Jeejeebhoy Towers,
25th Floor, Dalal Street
Mumbai - 400 001
Script Code: 500282

Dear Sir/Madam,

The Manager,
Department of Corporate Services
The National Stock Exchange of India Ltd.
Exchange Plaza, 5th Floor,
Plot No. C/1, G Block Bandra Kurla Complex
Bandra (E) Mumbai – 400051
Script Code: MODTHREAD

Ref.: Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
Sub.: Submission of outcome of the Meeting of Board of Directors held on 30th May, 2026

Pursuant to the Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, (“Listing Regulations”), the Board of Directors at their meeting held on today i.e. 30th May, 2026, have, inter alia, approved the following:

1. The Audited Financial Results (Standalone and Consolidated) of the Company for the quarter and year ended 31st March, 2026 along with the Statement of Assets and Liabilities as at and Statement of Cash Flows for the year ended 31st March, 2026. A Copy of Audited Financial Results (Standalone and Consolidated) along with Auditors’ Report thereon are enclosed herewith.

2. Re-appointment of S. Goyal & Co., Cost Accountants, Jaipur as Cost Auditor of the Company for the financial year 2026-27. The details as required under regulation 30 of Listing Regulations is annexed as annexure “A”.

The Board meeting commenced at 2.30 p.m and concluded at 5.45 p.m.

The above information will be made available on the Company website at www.modernwoollens.com. You are requested to take the above information on record.

Thanking you,

Yours faithfully

For Modern Threads (India) Limited

ANIL KUMAR JAIN
Digitally signed by ANIL KUMAR JAIN
Date: 2026.05.30 17:47:26 +05'30"

(Anil Kumar Jain)
Company Secretary & Compliance Officer
M.No: F7842

Corporate Head Office
Plant
Woollens Division
Yarn Division
: 5, Bhima Building, Sir Pochkhanwala Road, Worli, Mumbai - 400030
: Pragati Path, Bhilwara - 311001 (Rajasthan)
: NH-79, Ajmer-Bhilwara High Way, Village Raila, District - Bhilwara - 311024 (Rajasthan)

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S.S. SURANA & COMPANY
Chartered Accountants
B-135 B,10 B Scheme, Gopalpura Bye Pass
Jaipur-302018 (Rajasthan)
Mobile +91 9829227946
prahaladgupta@gmail.com

Independent Auditor's Report on the Quarterly and Year to Date Standalone Financial Results of Modern Threads (India) Limited Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, (as amended)

To
The Board of Directors of
Modern Threads (India) Limited

Report on Audit of the Standalone Financial Results

Qualified Opinion

We have audited the accompanying Statement of Standalone financial results of Modern Threads (India) Limited (the “company”) for the quarter ended March 31, 2026 and year ended March 31, 2026 (the “statement”) attached herewith, being submitted by the company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the “Listing Regulations”).

In our opinion and to the best of our information and according to the explanations given to us, the Statement:

i. is presented in accordance with the requirements of Regulations 33 of the Listing Regulations, and;

ii. except for the effects/possible effect of the matters described in the “Basis for Qualified Opinion” section of our report, gives a true and fair view in conformity with the recognition and measurement principles laid down in the applicable Indian Accounting Standards (‘Ind AS’) and other accounting principles generally accepted in India, of the net profit and other comprehensive income and other financial information of the company for the quarter and year ended March 31, 2026.

Basis for Qualified Opinion

i. The company has not provided for Interest (Dividend) on cumulative redeemable preference shares for the quarter ended 31.03.2026 Rs. 8.91 Lakhs and for the year ended 31.03.2026 Rs. 36.13 Lakhs (cumulative Rs. 1083.87 Lakhs up to 31.03.2026). Cumulative interest (Dividend) Rs. 1083.87 Lakhs has not been provided for as the company is in process of settlement of remaining redeemable preference share capital. (Refer No. 3)

ii. Balances of trade payables and trade receivables are subject to confirmation and consequential adjustments, if any. (Refer No. 4). In opinion of the management, impact if any, is not ascertainable.

We conducted our audit in accordance with the Standards on Auditing (“SAs”) specified under Section 143(10) of the Companies Act, 2013 (“the Act”). Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the Standalone Financial Results section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (“the ICAI”) together with the ethical requirements that are relevant to our audit of the Standalone financial results under the provisions of the Act, and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our qualified opinion.

SURANA & COMPANY
FRN-0010/SC
JAIPUR

---

Management's Responsibilities for the Standalone Financial Results

The statement has been prepared on the basis of Standalone financial statements. The Board of Directors of the company are responsible for the preparation and presentation of the statement that gives a true and fair view of the net profit and other comprehensive income and other financial information of the company in accordance with the applicable Indian Accounting Standards (Ind As) prescribed under Section 133 of the Act, read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the statement, the Board of Directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Standalone Financial Results

Our objectives are to obtain reasonable assurance about whether the statement as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs, will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the statement.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the statement, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3) (i) of the Act, we are also responsible for expressing our opinion on whether the company has adequate Internal financial controls with reference to Standalone financial statements and the operating effectiveness of such controls;
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors;
• Conclude on the appropriateness of the Board of Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the Standalone Financial Results or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern;

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• Evaluate the overall presentation, structure and content of the statement, including the disclosures, and whether the statement represents the underlying transactions and events in a manner that achieves fair presentation;

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

Other Matter

The statement includes the results for the quarter ended 31st March, 2026 being the balancing figure between the audited figures in respect of the full financial year ended 31st March, 2026 and published unaudited year to date figures up to the third quarter of the current financial year, which were subjected to a limited review by us, as required under the Listing Regulations.

For S.S Surana & Co.
Chartered Accountants
Firm Registration No. 001079C

Prahalad Gupta
(Partner)
Membership No. 074458
UDIN: 26074458Y1AXGHI792

Place: Bhilwara
Date: 30.05.2026

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Modern Threads (India) Limited

Registered Office :

Modern Woollens, Pragati Path,

BHILWARA-311001 (Rajasthan), INDIA

Phone: +91-1482-241801

E-mail: cs@modernwoollens.com

Website: www.modernwoollens.com

CIN: L17115RJ1980PLC002075

STATEMENT OF AUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED 31st MARCH, 2026

Particulars	Quarter Ended			Year Ended
	31.03.2026	31.12.2026	31.03.2026	31.03.2026	31.03.2026
	Audited	Un-audited	Audited	Audited	Audited
1. Income
(a) Revenue from Operations	7,813.96	7,490.20	6,741.45	30,057.97	26,004.48
(b) Other Income	375.94	381.58	403.65	1,169.24	565.01
Total Income	5,189.90	7,571.78	7,145.39	31,227.21	36,669.48
2. Expenses
(a) Cost of Materials consumed	5,733.05	4,513.92	4,091.30	19,045.55	15,052.25
(b) Purchases of stock-in-trade	-	-	0.62	-	0.62
(c) Changes in inventories of finished goods, work-in-progress	(1,777.76)	(843.93)	(252.88)	(2,357.80)	(13.72)
(d) Employee benefits expense	1,111.56	1,115.06	997.75	4,393.16	3,831.75
(e) Finance costs	93.78	105.36	26.73	297.22	123.63
(f) Depreciation and amortisation expense	117.30	137.44	108.72	469.45	450.81
(g) Other expenses
Manufacturing Expenses	1,405.83	1,279.18	1,255.82	5,203.66	4,917.76
Administrative and Selling Expenses	821.40	474.37	564.33	2,332.36	2,100.95
Total Expenses	7,506.16	7,081.40	6,792.39	29,379.62	26,814.09
3. Profit/(Loss) before exceptional items and Tax (1-2)	683.74	790.38	352.91	1,848.59	475.40
4. Exceptional Items	-	-	-	-	-
5. Profit/(loss) before tax (3-4)	683.74	790.38	352.91	1,848.59	475.40
6. Tax expense
Current tax	242.63	190.43	51.33	544.99	138.47
Deferred tax charge/(credit) (Refer Note No.8)
Total tax expense	242.63	190.43	51.33	544.99	138.47
7. Net Profit / (Loss) after tax (5-6)	440.91	599.96	301.58	1,303.60	336.93
8. Other Comprehensive Income
(a) Items that will not be reclassified to profit or loss
(i) Re-measurements of defined benefit plans	42.16	4.97	(6.78)	57.08	19.90
(ii) Income Tax relating to above ( Refer Note No. 8)
(b) Items that will be reclassified to profit or loss
(i) Gain/(Loss) on effective portion of cash flow hedge	-	-	1.10	(1.10)	1.10
(ii) Income Tax relating to above ( Refer Note No. 8) (net of Tax)
Other Comprehensive Income for the period (8a+8b)	42.16	4.97	(6.68)	55.90	21.00
9. Total Comprehensive Income (7 + 8)	483.07	604.92	295.90	1,359.58	357.93
10. Paid-up equity share capital
(Face Value of the Share Rs.10/-)	3,477.52	3,477.52	3,477.52	3,477.52	3,477.52
11. Other Equity excluding revaluation reserve				11,154.13	9,794.55
12. Earnings Per Share (Basic/Diluted) in Rs.
(a) Basic	1.27	1.73	0.87	3.75	0.97
(b) Diluted	1.27	1.73	0.87	3.75	0.97

Place: Bhilwara

Date: 30.08.2026

For and on behalf of the Board of Directors of Modern Threads (India) Limited

Rajesh Ranks

Chairman & Managing Director

DIN:03438721

Corporate Head Office

: 5, Bhima Building, Sir Pochkhanwala Road, Worli, Mumbai - 400030

Fax:

Woollens Division

: Pragati Path, Bhilwara - 311001 (Rajasthan)

Tara Division

: NH-79, Ajmer-Bhilwara High Way, Village Ralle, District - Shahpura - 311024 (Rajasthan)

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Registered Office:
Modern Woollens, Pragati Path,
BHILWARA-311001 (Rajasthan), INDIA
Phone: +91-1482-241801
E-mail: cs@modernwoollens.com
Website: www.modernwoollens.com
CIN: L17115RJ1980PLC002075

Notes:-

1. The above financial results have been reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on 30.05.2026

2. These audited standalone financial results have been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standards("Ind AS") prescribed under section 133 of the Companies Act, 2013 (as amended) read with the Companies (Indian Accounting Standards) Rules, 2015 (as amended) and requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Regulations 2015 (as amended), except stated otherwise.

3. The company has not provided for interest (Dividend) on cumulative redeemable preference shares for the quarter ended 31.03.2026 ₹ 8.91 lakhs and for the year ended 31.03.2026 ₹ 36.13 lakhs (cumulative ₹ 1083.87 Lakhs up to 31.03.2026). Cumulative Interest (Dividend) ₹ 1083.87 lakhs has not been provided for as the company is in process of settlement of remaining redeemable preference share capital.

4. Balances of trade payables and trade receivables are subject to confirmation and consequential adjustments, if any.

5. Share Application Money ₹ 1450 Lakhs has been raised pursuant to restructuring / settlement scheme submitted to BIFR. Consequent to enactment of Sick Industrial Companies (Special Provision) Repeal Act, 2003 (SICA Repeal Act) with effect from 01/12/2016, it become refundable.

6. The Central Government has enacted a unified framework comprising four labour codes i.e. the Code on Wages 2019, the Code on Social Security, 2020, the Industrial Relations Code, 2020 and the Occupational Safety, Health and Working Conditions Code 2020 (Collectively referred as "Labour Codes"). These Labour Codes have been made effective from 21st November, 2025. The rules relating to said Labour Codes are yet to be notified. Based on the assessment carried out by the management, the existing salary structure and employee benefit practices of the Company are substantially aligned with the requirements of the new labour codes and there is no material impact on the financial results upon implementation of the said codes, however, consequential impact arising from rules will be assessed and appropriately accounted for upon such notification.

7. The Company is primarily engaged in the business of textile manufacturing which the management and CODM recognise as the sole business segment. Hence, disclosure of segment-wise information is not required and accordingly not provided.

8. Current tax has been provided for as per provisions of section 115BAA of Income Tax Act, 1961. Deferred Tax expense Rs. 7.97 lakhs (net of OCI expense Rs. 18.13 lakhs) for quarter ended 31.03.2026 and Deferred Tax Expense Rs. 11.39 lakhs (net of OCI expense Rs. 14.09 lakhs) for the year ended 31.03.2026 and deferred tax asset Rs. 157.17 lakhs as at 31.03.2026 has not been recognised as it is not probable that future taxable profits will be available against which deferred tax assets can be utilised.

9. The figures of the quarter ended 31st March, 2026 and quarter ended 31st March, 2025 are the balancing figures between audited figures in respect of the full financial year and published unaudited year to date figures up to the third quarter of respective financial year which were subjected to limited review by the statutory auditors.

10. Previous period figures have been regrouped/re-arranged, wherever considered necessary, to make them comparable with the current period presentation.

For and on behalf of the Board of Directors of Modern Threads (India) Limited

Place: Bhilwara
Date: 30.05.2026

Rajesh Ranka
Chairman & Managing Director
DIN:03438721

Corporate Head Office : 5, Bhima Building, Sir Pochkhanwala Road, Worli, Mumbai - 400030
Plant: Woollens Division : Pragati Path, Bhilwara - 311001 (Rajasthan)
Yarn Division : NH-79, Ajmer-Bhilwara High Way, Village Ralla, District - Shahpura - 311024 (Rajasthan)

Registered Office :

Modern Woollens, Pragati Path,

BHILWARA-311001 (Rajasthan), INDIA

Phone: +91-1482-241801

E-mail: cs@modernwoollens.com

Website: www.modernwoollens.com

CIN: L17115RJ1980PLC002075

AUDITED STANDALONE STATEMENT OF ASSETS AND LIABILITIES AS AT 31st MARCH, 2026
(₹ in Lakhs)

| | Particulars | As at
31.03.2026 | As at
31.03.2025 |
| --- | --- | --- | --- |
| | | Audited | Audited |
| ASSETS | | | |
| a | Non-Current Assets | | |
| b | Property, Plant and Equipment | 4,017.33 | 4,470.27 |
| c | Capital Work-in-progress | 865.52 | 500.96 |
| d | Right Of Use Asset | 434.17 | 437.37 |
| e | Other Intangible assets | - | - |
| f | Financial Assets | | |
| g | Investment in Subsidiary | 0.00 | - |
| h | Other Investments | 0.48 | 0.48 |
| i | Loans | 45.06 | - |
| j | Other Financial assets | 1,040.45 | 661.69 |
| k | Other non-current assets | 258.86 | 288.50 |
| l | Total Non-current Assets (A) | 7,871.87 | 6,379.27 |
| a | Current Assets | | |
| a | Inventories | 9,912.11 | 7,659.16 |
| b | Financial Assets | | |
| i | Investments | 1,999.52 | 2,832.96 |
| ii | Trade Receivables | 4,703.46 | 4,686.98 |
| iii | Cash and Cash Equivalents | 420.30 | 86.71 |
| iv | Bank Balances other than iii above | 11.59 | 94.66 |
| v | Other Financial Assets | 51.74 | 85.43 |
| c | Income Tax Assets | 4.35 | 9.68 |
| d | Other Current Assets | 864.44 | 758.10 |
| e | Total Current Assets (B) | 17,967.51 | 16,183.68 |
| | Total Assets (A+B) | 25,639.38 | 22,562.95 |
| EQUITY AND LIABILITIES | | | |
| a | Equity | | |
| a | Equity Share Capital | 3,477.52 | 3,477.52 |
| b | Other Equity | 11,154.13 | 9,794.55 |
| c | Total Equity (A) | 14,631.65 | 13,272.07 |
| a | Liabilities | | |
| a | Non Current Liabilities | | |
| a | Financial Liabilities | | |
| i | Borrowings | - | - |
| ii | Lease liabilities | 1.00 | 1.03 |
| b | Provisions | 362.78 | 359.05 |
| c | Total Non Current Liabilities (B) | 393.78 | 400.08 |
| a | Current Liabilities | | |
| a | Financial Liabilities | | |
| i | Borrowings | 3,264.85 | 2,103.47 |
| ii | Lease liabilities | 0.21 | 0.10 |
| iii | Trade Payables | | |
| a | (a) total outstanding dues of micro enterprises
and small enterprises | 91.43 | 122.16 |
| b | (b) total outstanding dues of creditors other than
micro enterprises and small enterprises | 3,691.52 | 3,400.88 |
| iv | Other Financial Liabilities | 2,571.63 | 2,514.04 |
| b | Other Current Liabilities | 618.02 | 647.19 |
| c | Provisions | 124.76 | 102.96 |
| d | Current tax Liabilities ( Net ) | 181.43 | |
| e | Total Current Liabilities (C) | 10,543.95 | 8,890.80 |
| | Total Equity and Liabilities (A+B+C) | 25,539.38 | 22,562.95 |

Rajesh Ranka

Chairman & Managing Director

DIN:03438721

Place: Bhilwara

Date: 30.05.2026

Corporate Head Office

Plant

Woollens Division

Yarn Division

: 5, Bhima Building, Sir Pechkhanwala Road, Worli, Mumbai - 400030

: Pragati Path, Bhilwara - 311001 (Rajasthan)

: NH-79, Ajmer-Bhilwara High Way, Village Raila, District - Shahpura - 311024 (Rajasthan)

Audited Standalone Statement of Cash Flows for the Year Ended 31st March, 2026
(F in Lakhs)

| Particulars | Year ended
31.03.2026 | Year ended
31.03.2026 |
| --- | --- | --- |
| | Audited | Audited |
| A. Cash flow from operating activities | | |
| Profit before tax and after exceptional items | 1,848.59 | 475.40 |
| Adjustments for: | | |
| Depreciation and amortisation expense | 469.45 | 450.81 |
| Finance costs | 297.22 | 123.63 |
| Interest income | (60.27) | (60.06) |
| Loss/(Profit) on sale of Property, Plant and Equipment (net) | (37.70) | (55.24) |
| Investments in NSC Written Off | 0.00 | 0.34 |
| Gain on Sale/ Fair value Gain on Investments (net) | (152.73) | (160.64) |
| Remeasurement of employee benefits (Net) | 57.08 | 19.90 |
| Operating profit/(Loss) before working capital changes | 2,421.64 | 794.16 |
| Changes in working capital: | | |
| Adjustments for (Increase) / decrease in operating assets: | | |
| Inventories | (2,252.95) | (715.28) |
| Trade receivables | (16.48) | (19.00) |
| Other non-current financial assets | (358.76) | (285.67) |
| Other current financial assets | 2.59 | (13.81) |
| Other current assets | (106.34) | (331.35) |
| Other non-current assets | 10.64 | (106.93) |
| Adjustments for increase / (decrease) in operating liabilities: | | |
| Trade payables | 260.01 | (206.23) |
| Other Financial Liabilities | 57.59 | 48.95 |
| Other current liabilities | (29.17) | 91.03 |
| Provisions | (14.47) | 60.87 |
| Bank balance other than cash & cash equivalents | 83.07 | 146.34 |
| Cash generated from operations | 66.37 | (569.83) |
| Net Income tax (paid) / refunds | (356.22) | (184.28) |
| Net cash flow from / (used in) operating activities (A) | (291.85) | (753.11) |
| B. Cash flow from investing activities | | |
| Purchase of Property, plant and equipment | (1,313.93) | (832.23) |
| (including capital work in progress) | | |
| Payment for ROU Assets | (4.52) | (51.32) |
| Proceeds from sale of Property, plant and equipment | 78.28 | 168.14 |
| Purchase of Mutual funds & Debentures | - | (1,185.01) |
| Sale of Mutual Funds | 986.18 | 10.00 |
| Loan to subsidiary | (43.93) | - |
| Interest income | 59.14 | 60.05 |
| Net cash flow from / (used in) investing activities (B) | (238.89) | (1,530.37) |
| C. Cash flow from financing activities | | |
| Proceeds from / (Repayment of) Short Term Borrowings | 1,161.38 | 2,103.47 |
| Payment of Lease Liabilities | (0.03) | (0.02) |
| Finance costs | (297.11) | (123.58) |
| Net cash flow from / (used in) financing activities (C) | 864.24 | 1,979.87 |
| Net Increase / (decrease) in Cash and cash equivalents (A+B+C) | 333.50 | (603.81) |
| Cash and cash equivalents at the beginning of the year | 86.71 | 690.32 |
| Cash and cash equivalents at the end of the year | 420.30 | 86.71 |

The Statement of cash flows has been prepared under the Indirect method as set out in Ind AS ? on "Statement of Cash Flows".

Corporate Head Office : 5, Bhima Building, Sir Pochkhanwala Road, Worli, Mumbai - 400030

Plant | Woollens Division : Pragati Path, Bhilwara - 311001 (Rajasthan)

Term Division : NH-79, Ajmer-Bhilwara High Way, Village Raila, District - Shahpura - 311024 (Rajasthan)

BHLWARA-311001 (Rajasthan), INDIA

E-mail: os@modernwoollens.com

Website: www.modernowoollens.com

CIN: L17115RJ1580PLC002075

Statement on Impact of Audit Qualifications (for audit report with modified opinion) submitted along with Annual Audited Financial Results - (Standalone)
Statement for Modern Threads (India) Limited, as required for March 2024 (Note: If in Lokha)
I	Sl. No.	Particulars	Audited Figures (as reported before adjusting for qualifications)	Adjusted Figures (audited figures after adjusting for qualifications)
			If in Lokha	If in Lokha
1	Turnover / Total Income		31227.21	31227.21
2	Exceptional Items
3	Total Expenditure		29378.62	29414.78
4	Net Profit/Loss*		1303.60	1287.47
5	Earnings Per Share		3.75	3.64
6	Total Assets		25539.38	25539.38
7	Total Liabilities		13907.73	11991.60
8	Net Worth		14631.65	13547.78
9	Any other financial item(s) (as felt appropriate by the management)		Nil	Nil
* Net profit is after tax expenses of ₹ 544.99 lakhs and tax effect on OCI has been taken in deferred tax and Deferred Tax Assets has not been recognized in the financial statements as it is not probable that future taxable profits will be available against which deferred tax assets can be utilised.
II. Audit Qualification:
a. Details of Audit Qualification : (i) The company has not provided for interest (Dividend) on cumulative redeemable preference shares for the quarter ended 31.03.2026 ₹ 5.91 lakhs and for the year ended 31.03.2026 ₹ 36.13 lakhs (cumulative ₹ 1083.67 Lakhs up to 31.03.2026). Cumulative Interest (Dividend) ₹ 1083.67 lakhs has not been provided for as the company is in process of settlement of remaining redeemable preference share capital. (ii) Balances of trade payables and trade receivables are subject to confirmation and consequential adjustments, if any. b. Type of Audit Qualification : Qualified Opinion c. Frequency of qualification : Repetitive d. For Audit Qualification (i) where the impact is quantified by the auditor, Management's Views: For the Audit Qualifications Company is in process of settlement with respective preference shareholders. e. For Audit Qualification(s) where the impact is not quantified by the auditor: (i) Management's estimation on the impact of audit qualification: Unable to Estimate (ii) If management is unable to estimate the impact, reasons for the same: For qualification (ii) the company is in process of identifying liability of trade payables and trade receivables. (iii) Auditors' Comments on (i) or (ii) above:- Managements Comments are self explanatory so no separate comments are required.
III. Signatories: For Modern Threads (India) Limited Rakesh Ranka Chairman & Managing Director DIR:03436721 Place: Bhilwara Date: 30.06.2026 Refer Our Audit report dated 30th May, 2026 on Financial results of the Company For S.S. Surana & Co. Chartered Accountants (FRN.: 001079C) (Pratishad Gupta) Partner Membership No. 074458 Place: Bhilwara Date: 30.06.2026 UON: 26074458YJAXGH1792

: 5, Bhima Building, Sir Pochkhanwala Road, Worli, Mumbai - 400030

Plas

Yam Division

: NH-79, Ajmer-Bhilwara High Way, Village Ralla, District - Shahpura - 311024 (Rajasthan)

S.S. SURANA & COMPANY
Chartered Accountants
B-135 B,10 B Scheme, Gopalpura Bye Pass
Jaipur-302018 (Rajasthan)
Mobile +91 9829227946
prahaladgupta@gmail.com

Independent Auditor's Report on the Quarterly and Year to Date Consolidated Financial Results of Modern Threads (India) Limited Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, (as amended)

To
The Board of Directors of
Modern Threads (India) Limited

Report on Audit of the Consolidated Financial Results

Qualified Opinion

We have audited the accompanying Statement of Consolidated Financial Results of Modern Threads (India) Limited (“the Holding Company” or “the Company”) and its wholly owned subsidiary (the Holding Company and its subsidiary together referred to as “the Group”) for the quarter ended March 31, 2026 and year ended March 31, 2026 (the “statement”) attached herewith, being submitted by the Holding company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the “Listing Regulations”).

In our opinion and to the best of our information and according to the explanations given to us, and based on the consideration of financial information certified by the Management of the Holding Company relating to the wholly owned foreign subsidiary referred to in the “Other Matters” paragraph, the Statement:

i. Includes the financial results of the following Subsidiary;
Modern Woollens UK Ltd (a wholly owned foreign subsidiary company)

ii. is presented in accordance with the requirements of Regulations 33 of the Listing Regulations, and;

iii. except for the effect/possible effects of the matter described in the “Basis for Qualified Opinion” section of our report, gives a true and fair view in conformity with the recognition and measurement principles laid down in the applicable Indian accounting standards (‘Ind AS’) and other accounting principles generally accepted in India, of the consolidated net profit and other comprehensive income and other financial information of the Group for the quarter and year ended March 31, 2026.

Basis for Qualified Opinion

i. The company has not provided for Interest (Dividend) on cumulative redeemable preference shares for the quarter ended 31.03.2026 Rs. 8.91 Lakhs and for the year ended 31.03.2026 Rs. 36.13 Lakhs (cumulative Rs. 1083.87 Lakhs up to 31.03.2026). Cumulative interest (Dividend) Rs. 1083.87 Lakhs has not been provided for as the company is in process of settlement of remaining redeemable preference share capital. (Refer No. 3a)

ii. Balances of trade payables and trade receivables are subject to confirmation and consequential adjustments, if any. (Refer No. 3b). In opinion of the management, impact if any, is not ascertainable.

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Companies Act, 2013 (“the Act”). Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Results section of our report. We are independent of the Group in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (“the ICAI”) together with the ethical requirements that are relevant to our audit of the Statement under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these

B. SURANA & COMPANY
FRN-001079C
JAIPUR

requirements and the Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our qualified opinion on the Statement.

Management’s Responsibilities for the Consolidated Financial Results

The statement has been prepared on the basis of Consolidated financial statements. The Holding Company’s Board of Directors are responsible for the preparation and presentation of the statement that gives a true and fair view of the net profit and other comprehensive income and other financial information of the Group, in accordance with the applicable Indian accounting standards (Ind As) prescribed under Section 133 of the Act, read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations.

The respective Management and Board of Directors of the companies included in the Group are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Group and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the consolidated financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of the Statement by the Directors of the Holding Company, as aforesaid.

In preparing the statement, the respective Management and the Board of Directors of the Companies included in the Group are responsible for assessing the respective entity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the respective Board of Directors either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

The respective Board of Directors of the companies included in the Group are also responsible for overseeing the financial reporting process of their respective company.

Auditor’s Responsibilities for the Audit of the Consolidated Financial Results

Our objectives are to obtain reasonable assurance about whether the statement as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs, will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the statement.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the statement, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3) (i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate Internal financial controls with reference to Consolidated financial statements in place and the operating effectiveness of such controls;
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors;

P

SURANA R.C.D.A. F.R.N-001079C JAIPUR

• Conclude on the appropriateness of the Board of Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Group to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the Statement or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern;

• Evaluate the overall presentation, structure and content of the statement, including the disclosures, and whether the statement represents the underlying transactions and events in a manner that achieves fair presentation;

• Obtain sufficient appropriate audit evidence regarding the financial results/financial information of the entities within the Group to express an opinion on the statement. We are responsible for the direction, supervision and performance of the audit of the financial information of such entities included in the Statement of which we are the independent auditors. For the other entity included in the Statement, which have been audited by other auditor, such other auditor remains responsible for the direction, supervision and performance of the audit carried out by them. We remain solely responsible for our audit opinion. Our responsibilities in this regard are further described in para (1) of the section titled "Other Matters" in this audit report.

We communicate with those charged with governance of the Holding Company of which we are the independent auditors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with the statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

We also performed procedures in accordance with the circular issued by the SEBI under Regulation 33(8) of the Listing Regulations, as amended, to the extent applicable.

Other Matter

1. The accompanying Statement includes unaudited financial statements and other unaudited financial information in respect of Modern Woollens UK Limited, wholly owned foreign subsidiary, whose financial statements and other financial information reflect total assets of Rs 812.14 lakhs as at March 31, 2026, and total revenues of Rs 143.66 lakhs and Rs 158.27 lakhs, total net Loss after tax of Rs. 15.00 lakhs and Rs.20.23 lakhs, total comprehensive Loss of Rs. 15.00 lakhs and Rs. 20.23 lakhs, for the quarter and the year ended on that date respectively and net cash inflow of Rs. 59.53 lakhs for the year ended March 31, 2026 whose financial statements and other financial information have not been audited by any auditor. These unaudited financial statements/ financial information have been approved and furnished to us by the Management and our opinion on the Statement, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries is based solely on such unaudited financial statements/ financial information. In our opinion and according to the information and explanations given to us by the Management, these financial statements and financial information are not material to the Group.

Our opinion on the statement is not modified in respect of the above matter with respect to our reliance on the financial information certified by the management.

1. In respect of the wholly owned subsidiary, which is located outside India whose financial statements and other financial information have been prepared in accordance with accounting principles generally accepted in their respective country and which have not been audited, the Holding Company's management has converted the financial statements of such wholly owned subsidiary located outside India from accounting principles generally accepted in their respective country to accounting principles generally accepted in India. Our opinion in so far as it relates to the balances and affairs of such subsidiary located

SURANA & CO. (FA) 5000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000

outside India is based on the conversion/adjustments prepared by the management of the Holding Company.

Our opinion is not modified in respect of matter stated above.

1. Wholly owned subsidiary viz. Modern Woollens UK Limited started its operations in the quarter ended 31.12.2025. Accordingly, the Consolidated Financial Statements for quarter ended 31st December, 2025, quarter ended 31st March, 2026 and year ended 31 March 2026 include the assets, liabilities, income and expenses of the subsidiary for the respective period of the financial year 2025-26. The figures for the quarter ended 31st March, 2025 and year ended 31st March, 2025 pertain to the standalone financial statements of the Holding Company only and do not include the financial information of the subsidiary.

2. Figures for the quarter ended March 31, 2026 are the balancing figure between audited figures in respect of full financial year ended March 31, 2026 and published unaudited year to date figures up to the third quarter of financial year 2025-26 in which figures for Quarter ended June 30, 2025 and quarter ended September 30, 2025 are only in respect of holding company. Figures for the quarter ended March 31, 2025 are the balancing figure between audited figures in respect of full financial year ended March 31, 2025 and published unaudited year to date figures up to the third quarter of financial year 2024-25 only in respect of holding company. Figures upto third quarter of FY 2025-26 and FY 2024-25 were subjected to a limited review by us, as required under the Listing Regulations.

For S.S Surana & Co.

Chartered Accountants

Firm Registration No. 001079C

Prahalad Gupta

(Partner)

Membership No. 074458

UDIN:26074458 WLCGKB5622

CIN: L17116RJ1980PLC002075

STATEMENT OF AUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED 31st MARCH, 2026
(₹ in Lakhs)

Particulars	Quarter Ended			Year Ended
	31.03.2026	31.12.2026	31.03.2026	31.03.2026	31.03.2026
	Audited	Un-audited	Audited	Audited	Audited
	Refer Note 7 & 8	Refer Note 7 & 8	Refer Note 7 & 8	Refer Note 7 & 8	Refer Note 7 & 8
1. Income
(a) Revenue from Operations	7,450.34	7,271.02	6,741.45	29,475.17	26,004.49
(b) Other Income	375.30	380.95	403.85	1,167.97	985.01
Total Income	7,825.64	7,651.97	7,148.30	30,843.14	26,989.49
2. Expenses
(a) Cost of Materials consumed	5,730.59	4,516.38	4,091.30	19,040.65	15,052.25
(b) Purchases of stock-in-trade	17.67	-	0.62	17.67	0.62
(c) Changes in inventories of finished goods, work-in-progress	(2,090.47)	(758.14)	(252.88)	(2,664.72)	(13.72)
(d) Employee benefits expense	1,111.56	1,115.06	997.75	4393.18	3,831.75
(e) Finance costs	93.78	105.36	26.73	297.22	123.63
(f) Depreciation and amortisation expense	117.30	137.44	108.72	469.45	450.81
(g) Other expenses
Manufacturing Expenses	1,406.83	1,279.18	1,255.82	5,203.66	4,917.76
Administrative and Selling Expenses	829.16	476.82	564.33	2,342.27	2,150.98
Total Expenses	7,215.42	8,871.80	6,750.38	28,879.28	26,814.09
3. Profit/(Loss) before exceptional Items and Tax (1-2)	609.22	780.17	352.91	1,763.86	475.40
4. Exceptional Items	-	-	-	-	-
5. Profit/(loss) before tax (3-4)	609.22	780.17	352.91	1,763.86	475.40
6. Tax expense
Current tax	242.83	190.43	51.33	544.99	138.47
Deferred tax charge/(credit) (Refer Note No.4)
Total tax expense	242.83	190.43	51.33	544.99	138.47
7. Net Profit / (Loss) after tax (5 -6)	366.39	589.74	301.56	1,318.87	336.93
8. Other Comprehensive Income
(a) Items that will not be reclassified to profit or loss
(i) Re-measurements of defined benefit plans	42.16	4.97	(6.79)	57.08	19.90
(ii) Income Tax relating to above ( Refer Note No. 4)
(b) Items that will be reclassified to profit or loss
(i) Gain/(Loss) on effective portion of cash flow hedge	-	-	1.10	(1.10)	1.10
(ii) Exchange difference Gain/(Loss) arising due to foreign currency translation	(7.11)	0.10	-	(7.01)	-
(iii) Income Tax relating to above ( Refer Note No. 4)
Other Comprehensive Income for the period (5a+6b+6c)	35.55	5.07	(5.68)	48.97	21.00
9. Total Comprehensive Income (7 + 9)	401.44	594.81	295.90	1,267.64	357.93
10. Paid-up equity share capital
(Face Value of the Share Rs.10/-)	3,477.52	3,477.52	3,477.52	3,477.52	3,477.52
11. Other Equity excluding revaluation reserve				11,082.39	9,794.55
12. Earnings Per Share (Basic/Diluted) in Rs.
(a) Basic	1.05	1.70	0.87	3.51	0.97
(b) Diluted	1.05	1.70	0.87	3.51	0.97

Corporate Head Office : 5, Bhima Building, Sir Puducherry, Roj Road, Worli, Mumbai - 400030
Plant
- Woollens Division : Pragati Path, Bhilwara - 311001 (Rajasthan)
- Yarn Division : NH-79, Ajmer-Bhilwara High Way, Village Ralla, District - Shahpura - 311024 (Rajasthan)

CIN: L17118RJ1980PLC002075

Notes:

1. The Statement of Consolidated Audited Financial Results ("the Statement") of Modern Threads (India) Limited ("the holding company") and its wholly-owned subsidiary viz. Modern Woollens UK Limited (the holding company and its wholly-owned subsidiary together referred to as "the Group"), for the quarter and year ended March 31, 2026, have been reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on 30.05.2026.

2. These Audited Consolidated Financial Results have been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standards ("Ind AS") prescribed under section 133 of the Companies Act, 2013 (as amended) read with the Companies (Indian Accounting Standards) Rules, 2015 (as amended) and requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Regulations 2015 (as amended), except stated otherwise.

3. In respect of Modern Threads (India) Limited (the holding company)

4. The company has not provided for interest (Dividend) on cumulative redeemable preference shares for the quarter ended 31.05.2026 ₹ 8.91 lakhs and for the year ended 31.03.2026 ₹ 36.13 lakhs (cumulative ₹ 1083.87 Lakhs up to 31.03.2026). Cumulative interest (Dividend) ₹ 1083.87 lakhs has not been provided for as the company is in process of settlement of remaining redeemable preference share capital.

5. Balances of trade payables and trade receivables are subject to confirmation and consequential adjustments, if any.

6. Share Application Money ₹1450 Lakhs has been raised pursuant to restructuring / settlement scheme submitted to BIFR. Consequent to enactment of Sick Industrial Companies (Special Provision) Repeal Act, 2008 (SICA Repeal Act) with effect from 01/12/2016, it became refundable.

7. The Central Government has enacted a unified framework comprising four labour codes i.e. the Code on Wages 2019, the Code on Social Security, 2020, the Industrial Relations Code, 2020 and the Occupational Safety, Health and Working Conditions Code 2020 (Collectively referred as "Labour Codes"). These Labour Codes have been made effective from 21st November, 2025. The rules relating to said Labour Codes are yet to be notified. Based on the assessment carried out by the management, the existing salary structure and employee benefit practices of the Group are substantially aligned with the requirements of the new labour codes and there is no material impact on the financial results upon implementation of the said codes, however, consequential impact arising from rules will be assessed and appropriately accounted for upon such notification.

8. Current tax has been provided for as per provisions of section 1158AA of Income Tax Act, 1961. Deferred Tax expense Rs. 4.13 lakhs (net of OCI expense Rs. 18.13 lakhs) for quarter ended 31.03.2026 and Deferred Tax Expense Rs.7.55 lakhs (net of OCI expense Rs. 14.09 lakhs) for the year ended 31.03.2026 and deferred tax asset Rs. 161.01 lakhs as at 31.03.2026 has not been recognised as it is not probable that future taxable profits will be available against which deferred tax assets can be utilised.

9. The Group is primarily engaged in the business of textile manufacturing which the management and CODM recognise as the sole business segment. Hence, disclosure of segment-wise information is not required and accordingly not provided.

10. The accompanying Statement includes financial statements and other financial information in respect of Modern Woollens UK Limited, wholly owned subsidiary which have not been audited by any auditor. These unaudited financial statements/ financial information have been approved and furnished to the auditors by the Management. These financial statements and financial information are not material to the Group.

11. Wholly owned subsidiary viz. Modern Woollens UK Limited started its operations in the quarter ended 31.12.2025. Accordingly, the Consolidated Financial Statements for quarter ended 31st December, 2025, quarter ended 31st March, 2026 and year ended 31 March 2026 include the assets, liabilities, income and expenses of the subsidiary for the respective period of the financial year 2025-26. The figures for the quarter ended 31st March, 2025 and year ended 31st March, 2025 pertain to the standalone financial statements of the Holding Company only and do not include the financial information of the subsidiary.

12. Figures for the quarter ended March 31, 2026 are the balancing figure between audited figures in respect of full financial year ended March 31, 2026 and published unaudited year to date figures up to the third quarter of financial year 2025-26 in which figures for Quarter ended June 30, 2025 and quarter ended September 30, 2025 are only in respect of holding company. Figures for the quarter ended March 31, 2025 are the balancing figure between audited figures in respect of full financial year ended March 31, 2025 and published unaudited year to date figures up to the third quarter of financial year 2024-25 only in respect of holding company. Figures upto third quarter of FY 2025-26 and FY 2024-25 were subjected to a limited review by the statutory auditors, as required under the Listing Regulations.

Rajesh Ranke
Chairman & Managing Director
DIN:034387Z1

Corporate Head Office : 5, Bhima Building, Sir Pochatharmala Road, Worli, Mumbai - 400030
Plant: ☐ Woollens Division : Pragati Path, Bhilwara - 311001 (Rajasthan)
Tarn Division : NH-79, Ajmar-Bhilwara High Way, Village Raila, District - Shahpura - 311024 (Rajasthan)

E-mail: ca@modernwoollens.com

AUDITED CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES AS AT 31ST MARCH, 2025
(₹ in Lakhs)

| | Particulars | As at
31.03.2026 | As at
31.03.2026 |
| --- | --- | --- | --- |
| | | Audited | Audited |
| ASSETS | | | |
| a | Non-Current Assets | | |
| b | Property, Plant and Equipment | 4,917.33 | 4,470.27 |
| c | Capital Work-in-progress | 865.52 | 850.96 |
| d | Right Of Use Asset | 434.17 | 437.37 |
| e | Other Intangible assets | - | - |
| f | Financial Assets | | |
| g | Investments | 0.48 | 0.48 |
| h | Other Financial assets | 1,040.45 | 681.69 |
| i | Other non-current assets | 268.86 | 288.50 |
| j | Total Non-current Assets (A) | 7,526.81 | 6,379.27 |
| Current Assets | | | |
| a | Inventories | 10,461.98 | 7,659.16 |
| b | Financial Assets | | |
| i | Investments | 1,999.52 | 2,832.96 |
| ii | Trade Receivables | 4,054.76 | 4,686.98 |
| iii | Cash and Cash Equivalents | 479.83 | 86.71 |
| iv | Bank Balances other than iii above | 11.89 | 94.66 |
| v | Other Financial Assets | 51.74 | 55.43 |
| c | Income Tax Assets | 4.35 | 9.68 |
| d | Other Current Assets | 866.22 | 758.10 |
| e | Total Current Assets (B) | 17,932.99 | 16,183.69 |
| f | Total Assets (A+B) | 25,459.80 | 22,562.95 |
| EQUITY AND LIABILITIES | | | |
| a | Equity | | |
| b | Equity Share Capital | 3,477.52 | 3,477.52 |
| c | Other Equity | 11,062.39 | 9,794.55 |
| d | Total Equity (A) | 14,639.91 | 13,272.07 |
| e | Liabilities | | |
| i | Non Current Liabilities | | |
| j | Financial Liabilities | | |
| k | Borrowings | - | - |
| l | Lease liabilities | 1.00 | 1.03 |
| m | Provisions | 362.78 | 399.05 |
| n | Total Non Current Liabilities (B) | 363.78 | 400.08 |
| a | Current Liabilities | | |
| i | Financial Liabilities | | |
| j | Borrowings | 3,264.65 | 2,103.47 |
| k | Lease liabilities | 0.21 | 0.10 |
| iii | Trade Payables | | |
| iv | (a) total outstanding dues of micro enterprises
and small enterprises | 91.43 | 122.16 |
| v | (b) total outstanding dues of creditors other than
micro enterprises and small enterprises | 3,695.54 | 3,400.88 |
| iv | Other Financial Liabilities | 2,578.12 | 2,514.04 |
| b | Other Current Liabilities | 621.77 | 647.19 |
| c | Provisions | 124.76 | 102.96 |
| d | Current tax Liabilities ( Net ) | 181.43 | - |
| e | Total Current Liabilities (C) | 10,556.11 | 6,890.80 |
| f | Total Equity and Liabilities (A+B+C) | 28,459.80 | 22,562.95 |

Raisah Ranka
Chairman & Managing Director
DIN:03438721

Corporate Head Office : 5, Bhima Building, 68, Pochiknaniwala Road, Worli, Mumbai - 400030
Plant { Woollens Division : Pragati Path, Bhilwara - 311001 (Rajasthan)
Yarn Division : NH-79, Ajmer-Bhilwara High Way, Village Raila, District - Shahpura - 311024 (Rajasthan)

E-mail: ce@modernwoollens.com

Audited Consolidated Statement of Cash Flows for the Year Ended 31st March, 2026
(₹ in Lakhs)

| Particulars | Year ended
31.03.2026
Audited | Year ended
31.03.2026
Audited |
| --- | --- | --- |
| A. Cash flow from operating activities | | |
| Profit before tax and after exceptional items | 1,763.86 | 475.40 |
| Adjustments for: | | |
| Depreciation and amortisation expense | 469.45 | 460.81 |
| Finance costs | 297.22 | 123.63 |
| Interest income | (58.65) | (60.05) |
| Loss/(Profit) on sale of Property, Plant and Equipment (net) | (27.70) | (65.24) |
| Investments in NSC Written Off | | 0.34 |
| Gain on Sale/ Fair value Gain on Investments (Net) | (152.73) | (160.64) |
| Remeasurement of employee benefits (Net) | 57.08 | 19.90 |
| Sale/(Loss) arising due to foreign currency Translation | (7.01) | |
| Operating profit/(Loss) before working capital changes | 2,331.32 | 794.15 |
| Changes in working capital: | | |
| Adjustments for (increase) / decrease in operating assets: | | |
| Inventories | (2,802.82) | (715.26) |
| Trade receivables | 632.22 | (19.00) |
| Other non-current financial assets | (358.76) | (285.57) |
| Other current financial assets | 2.59 | (13.51) |
| Other current assets | (111.12) | (331.35) |
| Other non-current assets | 19.64 | (106.93) |
| Adjustments for increase / (decrease) in operating liabilities: | | |
| Trade payables | 263.93 | (206.23) |
| Other Financial Liabilities | 62.08 | 46.95 |
| Other current liabilities | (25.42) | 61.05 |
| Provisions | (14.47) | 60.87 |
| Bank balance other than cash & cash equivalents | 83.07 | 145.34 |
| Cash generated from operations | 92.26 | (568.52) |
| Net income tax (paid) / refunds | (358.22) | (184.28) |
| Net cash flow from / (used in) operating activities (A) | (275.96) | (753.11) |
| B. Cash flow from investing activities | | |
| Purchase of Property, plant and equipment (including capital work in progress) | (1,313.93) | (832.23) |
| Payment for ROU Assets | (4.52) | (51.32) |
| Proceeds from sale of Property, plant and equipment | 78.28 | 168.14 |
| Purchase of Mutual funds & Debentures | | (1,185.01) |
| Sale of Mutual Funds | 986.16 | 10.00 |
| Interest income | 55.85 | 60.05 |
| Net cash flow from / (used in) investing activities (B) | (195.16) | (1,939.37) |
| C. Cash flow from financing activities | | |
| Proceeds from / (Repayment of) Short Term Borrowings | 1,161.38 | 2,103.47 |
| Payment of Lease Liabilities | (0.03) | (0.02) |
| Finance costs | (297.11) | (123.58) |
| Net cash flow from / (used in) financing activities (C) | 664.24 | 1,979.57 |
| Net increase / (decrease) in Cash and cash equivalents (A+B+C) | 393.12 | (603.61) |
| Cash and cash equivalents at the beginning of the year | 86.71 | 690.32 |
| Cash and cash equivalents at the end of the year | 479.83 | 86.71 |

The Statement of cash flows has been prepared under the Indirect method as set out in Ind AS 7 on "Statement of Cash Flows".

Place: Bhilwara
Date: 30.06.2026

Rajesh Ranka
Chairman & Managing Director
DIN:03438721

Corporate Head Office : 5, Brama Building, Sir Rochkhanwala Road, Worli, Mumbai - 400030
Plant: Woollens Division : Pragati Path, Bhilwara - 311001 (Rajasthan)
Year Division : NH-79, Ajmer-Bhilwara High Way, Village Ralla, District - Shahpura - 311024 (Rajasthan)

Modern Threads (India) Limited
Registered Office: Modern Woollens, Pragati Path, BHILWARA-311001 (Rajasthan), INDIA Phone: +91-1482-241801 E-mail: cs@modernwoollens.com Website: www.modernwoollens.com CIN: L17118RJ1980PLC002075

Statement on Impact of Audit Qualifications (for audit report with modified notation) submitted along with Annual Audited Financial Results - (Consolidated)
1	SL No.	Particulars	Audited Figures (as reported before adjusting for qualifications)	Adjusted Figures (Audited figures after adjusting for qualifications)
			F in Lakhs	F in Lakhs
	1	Turnover / Total Income	90843.14	90843.14
	2	Exceptional Items
	3	Total Expenditure	28879.28	28915.41
	4	Net Profit/(Loss)*	1218.87	1162.74
	5	Earnings Per Share	3.51	3.40
	6	Total Assets	25459.80	26459.80
	7	Total Liabilities	10919.69	12003.79
	8	Net Worth	14939.91	13456.04
	9	Any other financial item(s) (as fell appropriate by the management)	Nil	Nil
* Net profit is after tax expenses of ₹ 544.99 lakhs and Tax effect on OCI has been taken in Deferred Tax and Deferred Tax Assets has not been recognized in the financial statements as it is not probable that future taxable profits will be available against which deferred tax assets can be utilised.
II. Audit Qualification:
a. Details of Audit Qualification :
In respect of Modern Threads (India) Limited (the holding company):
(i) The company has not provided for Interest (Dividend) on cumulative redeemable preference shares for the quarter ended 31.03.2026 ₹ 8.91 lakhs and for the year ended 31.03.2026 ₹ 36.13 lakhs (cumulative ₹ 1083.87 Lakhs up to 31.03.2026). Cumulative Interest (Dividend) ₹ 1083.87 lakhs has not been provided for as the company is in process of settlement of remaining redeemable preference share capital.
(ii) Balances of trade payables and trade receivables are subject to confirmation and consequential adjustments, if any.
b. Type of Audit Qualification: Qualified Opinion
c. Frequency of qualification: Repetitive
d. For Audit Qualification (i) where the impact is quantified by the auditor, Management's Views:
For the Audit Qualifications Company is in process of settlement with respective preference shareholders.
e. For Audit Qualification(s) where the impact is not quantified by the auditor:
(i) Management's estimation on the impact of audit qualification: Unable to Estimate
(ii) If management is unable to estimate the impact, reasons for the same:
For qualification (ii) the company is in process of identifying liability of trade payables and trade receivables.
(iii) Auditors' Comments on (i) or (ii) above:-
Managements Comments are self explanatory so no separate comments are required.
III. Signatories:
For Modern Threads (India) Limited
Rajesh Ramla
Chairman & Managing Director
DIN:03438721
Place: Bhilwara
Date: 30.06.2026
Refer Our Audit report dated 30th May, 2026 on Financial results of the Group
For S.S. Surana & Co.
Chartered Accountants
(FRN.: 001079C)
(Prahalad Gupta)
Partner
Membership No. 074459
Place: Bhilwara
Date: 30.06.2026
UDIN: 96074458WLCGKB5622

Corporate Head Office : 5, Bhima Building, Sir Pochkharwala Road, Worli, Mumbai - 400030
Plant
Waelless Division : Pragati Path, Bhilwara - 311001 (Rajasthan)
Yarn Division : NH-79, Ajmer-Bhilwara High Way, Village Ralla, District - Shahpura - 311024 (Rajasthan)

Annexure A

Re-appointment of S. Goyal & Co., Cost Accountants, Jaipur, as Cost Auditor of the Company for the Financial Year 2026-27

SI No.	Particulars	Brief Information
1	Name of the Cost Auditors	S. Goyal & Co., Cost Accountants
2	Firm Registration Number	005883
3	Address	P.No 8, Chitragupta Nagar 1^{st} Imli Phatak Rly, Crossing, Jaipur - 302 015 (Rajasthan)
4	Reason for Change viz. appointment, resignation, removal, death or otherwise	Re-appointment of S. Goyal & Co., Cost Accountants, Jaipur, as the Cost Auditor of the Company for the financial year 2026-27
5	Date of re-appointment / cessation (as applicable) & term of appointment	30.05.2026
6	Brief Profile (in case of re-appointment)	S. Goyal & Co., Cost Accountants, Jaipur, is a firm of Practicing Cost accountants and having rich experience in the field of Costing, Accounting, Cost Audit, Internal Audit, Consultancy, Management, and GST etc.
7	Disclosure of relationship between directors (in case of appointment of director)	Not applicable

Plant

Yarn Division

: NH-79, Ajmer-Bhilwara High Way, Village Raila, District - Bhilwara - 311024 (Rajasthan)