Winsome Yarns reported liabilities fall to Rs 157.13 crore

Winsome Yarns Limited (Winsome Yarns) reported total liabilities of Rs 157.13 crore at 30 September 2026, down from Rs 644.96 crore at 31 March 2026, after giving effect to the NCLT's 16 April 2026 CIRP order, while tax-case accounting and several reconciliations remained unfinished.

What caused Winsome Yarns' reported liabilities to fall?

Winsome Yarns' reported liabilities fell by Rs 487.83 crore between 31 March 2026 and 30 September 2026 as the company gave effect to the National Company Law Tribunal's 16 April 2026 Corporate Insolvency Resolution Process order, subject to stated exceptions. The company said the order requires crystallised and unclaimed liabilities as of its date to be extinguished in accordance with the resolution plan and the tribunal's directions.

The largest movement was in current liabilities, which declined to Rs 155.78 crore from Rs 642.10 crore. Borrowings accounted for most of that change, falling to Rs 143.91 crore from Rs 556.58 crore, while non-current liabilities decreased to Rs 1.35 crore from Rs 2.86 crore.

The liability reduction was reflected in other equity, which moved to negative Rs 108.96 crore at 30 September from negative Rs 520.47 crore at 31 March. Total equity consequently improved to negative Rs 38.25 crore from negative Rs 449.77 crore, but remained negative after the accounting changes.

Total assets also changed over the six months, declining to Rs 118.88 crore from Rs 195.19 crore. Property, plant and equipment stood at Rs 111.57 crore at 30 September versus Rs 116.35 crore at 31 March, while current assets fell to Rs 4.38 crore from Rs 52.70 crore, including current investments of Rs 25.68 crore at year-end that were not reported at 30 September.

How is Winsome Yarns implementing the approved resolution plan?

Winsome Yarns is implementing a resolution plan valued at Rs 162.90 crore that the National Company Law Tribunal approved on 16 April 2026, after the company entered CIRP on 22 December 2023. Mohini Health and Hygiene Limited submitted the approved plan, which provides for resolving claims and liabilities, fund infusion for revival and operations, and implementation over the period set out in the plan.

The company said the plan is being implemented under a Monitoring Committee comprising representatives of the committee of creditors and the successful resolution applicant, chaired by an insolvency professional. The existing board's powers remain suspended, and the filing says the tribunal's order resulted in a change in Winsome Yarns' management.

The approval ended the moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016, from 16 April 2026. Winsome Yarns said implementation will affect its financial position, liabilities, operations and capital structure in line with the plan and applicable laws, rather than making the 30 September balance sheet the final outcome of every adjustment.

During financial year 2026-27, Winsome Yarns plans further accounting entries covering asset and liability write-offs, extinguishments, settlements or derecognition where applicable. It said the net impact may be routed through capital reserves to the extent permitted by the accounting framework and CIRP order, with effects to be recognised in the relevant quarterly results, including the first quarter of FY 2026-27 where applicable.

What accounting matters remain unresolved at Winsome Yarns?

Winsome Yarns has not completed recognition and measurement of adjustments linked to pending sales tax, income tax and goods and services tax cases as of 30 September 2026. The independent auditor said those matters still require accounting assessment, reconciliation and any consequential statutory or regulatory compliance, meaning their final impact was not incorporated in the reported position.

The auditor also identified pending confirmations and reconciliations for accounts payable, bank balances including fixed deposits, other current assets, leasing advances, security deposits, secured loans, other liabilities, provisions and contingent liabilities. Management certified balances, but the auditor stated that the effect of missing confirmations was unascertainable and did not comment on that impact.

The financial results were prepared on a going-concern basis despite accumulated losses producing negative net worth at 30 September 2026. The auditor issued a qualified conclusion in light of the approved plan and its expected implementation, while stating that stronger internal controls would improve the reliability of financial reporting.

The filing also says the directors who signed the 12 November 2026 results were appointed or reconstituted after plan approval. They approved information covering periods before their appointment, including the CIRP period, based on the books, records and representations available to them.

What do Winsome Yarns' latest operating results show?

Winsome Yarns recorded a loss after tax of Rs 16.62 crore for the six months ended 30 September 2026, compared with a loss of Rs 4.85 crore in the six months ended 30 September 2025. Total revenue was Rs 39 lakh, down from Rs 1.85 crore, and there was no income from operations in the latest six-month period, compared with Rs 18 lakh a year earlier.

The half-year loss included finance cost of Rs 10.18 crore, versus no finance cost reported for the comparable prior-year half. Depreciation and amortisation was Rs 4.79 crore compared with Rs 4.94 crore, while employee-benefit expense declined to Rs 29 lakh from Rs 53 lakh.

For the quarter ended 30 September 2026, Winsome Yarns reported a loss after tax of Rs 13.30 crore, compared with Rs 1.57 crore in the quarter ended 30 September 2025. Finance cost was Rs 10.11 crore in the latest quarter, while total expenses were Rs 13.32 crore and total revenue was Rs 2 lakh.

Winsome Yarns identifies textiles, covering yarn, knitwear and related revenue, as its sole reportable segment under Indian Accounting Standard 108. Its yarn-spinning and knitting business also continued on a job-work basis for third parties to the extent possible within the limited resources available, according to the filing.

Conclusion

Winsome Yarns' 30 September 2026 balance sheet shows the immediate reported accounting effect of implementing the tribunal-approved CIRP plan: liabilities fell to Rs 157.13 crore from Rs 644.96 crore and negative equity narrowed to Rs 38.25 crore from Rs 449.77 crore. The same filing shows a Rs 16.62 crore half-year loss, no operating income and Rs 10.18 crore of finance cost.

The next disclosures to watch are further FY 2026-27 adjustments for assets and liabilities, including entries that may be routed through capital reserves, and the completion of tax-case assessments and balance confirmations. Winsome Yarns remains under Monitoring Committee supervision while it implements the Rs 162.90 crore plan's provisions for liability resolution, funding and operations.