What’s new

• Statutory auditors raised a going-concern warning, citing the ₹7.03 cr CCI dispute and negative reserves.
• The CFO did not sign the audited results, a mandatory requirement under law.
• Full-year net profit was ₹27.96 lakhs, but revenue collapsed after rental income ended in January.

Why it matters

A going-concern flag from auditors is a direct statement that the entity may not survive the next 12 months. The CFO's refusal to sign adds a layer of internal dissent to an already severe external threat. For a ₹10 crore market-cap company, a ₹7 crore legal liability is existential.

What we’re watching

• The outcome of the Cotton Corporation of India litigation, which dwarfs the company's entire market cap.
• Whether the CFO's refusal to sign triggers a regulatory or governance response.
• Any plan to resolve the premises dispute or secure alternative revenue.

The full read

Pasari Spinning Mills is fighting for survival. Its statutory auditors have flagged a material uncertainty over the company's ability to continue, citing a ₹7.03 crore legal dispute with the Cotton Corporation of India and negative financial reserves. That liability is nearly 70% of the company's ₹10 crore market cap. The fight cost Pasari its main manufacturing premises in January via a court order, killing its rental income and slashing full-year profit to just ₹27.96 lakhs. The situation inside the boardroom is no calmer: the Chief Financial Officer refused to sign the final results, a legal mandate he or she is obligated to fulfill. For a nano-cap with a massive lawsuit hanging over it, the CFO's refusal to sign the books is the most concrete signal that internal confidence has broken.

Primary source: BSE · NSE