Aditya Spinners has a seven-year run of unqualified audit opinions and operating cash flow that consistently covers reported profit. The record is not without blemishes: promoter control is absolute and remuneration is guaranteed regardless of profits, statutory dues were in arrears for more than six months as of 31 March 2026, and return on capital employed has fallen to 0.5%.
Key findings
- Promoter family holds absolute control, with pay guaranteed even in losses
Minor- Promoter shareholding has stayed at 66.37% for seven years with zero pledge, and all shareholder resolutions passed with 100% promoter votes in favour, though public non-institutional votes cast against resolutions at the 6 September 2022 AGM totalled 40 votes. K Vijay Kumar and K Sriram, related family members who hold Managing Director and Joint Managing Director roles, have minimum guaranteed remuneration of ₹36.00 lakhs and ₹30.00 lakhs per year respectively, payable even if the company makes a loss. A Non-Independent Director resigned on 30 May 2025 with undisclosed detailed reasons and was re-appointed as an Independent Director effective 1 June 2025 without a cooling-off period. - Prior-period restatements recur, and depreciation on revalued assets stays off the P&L
Minor- The company retrospectively restated FPPCA charges of ₹2.09 crore in FY26, decreasing retained earnings as of 31 March 2025 from ₹656.75 lacs to ₹502.77 lacs. A prior-period deferred-tax error of ₹1.63 crore was charged to the FY23 P&L under Ind AS 8 in FY24. The accounting policy, stated consistently across seven years, adjusts depreciation on revalued assets against the revaluation reserve without debiting the Statement of Profit & Loss. - Reported borrowings of ₹16.30 crore are backed by promoter personal guarantees and collateral
Minor- Term loans and cash credit facilities from HDFC Bank and Indian Overseas Bank are guaranteed by K Vijay Kumar and K V Naga Lalitha, both promoter-family members. From FY20 through FY22, the facilities were also secured by a mortgage on land belonging to the Managing Director personally. Total borrowings stood at ₹16.30 crore as of 31 March 2026. - A long-running electricity duty dispute dominates contingent liabilities, with final judgment pending
Minor- The company reversed its entire electricity duty provision of ₹46.11 lakhs in FY24 and ₹76.58 lakhs in FY23 after an Andhra Pradesh High Court interim order directed APSPDCL to refund or adjust excess duty beyond 6 paise per unit. The final judgment in the writ petition remains pending as of the FY26 annual report. An APERC demand of ₹43.04 lakhs for RPPO shortfall is provided for.
What to watch
- Electricity duty final judgment. The writ petition before the Andhra Pradesh High Court remains pending as of the FY26 annual report.
- Disputed statutory dues. The electricity duty and penalty arrears reported in the FY26 CARO clause remain subject to a pending final judgment by the Andhra Pradesh High Court.
- Balance FPPCA liability. As of 31 March 2025, the company had not recognised ₹1.69 crore of the total ₹2.24 crore APERC levy, pending demand from DISCOMs, but this position was superseded by a retrospective restatement of FPPCA charges of ₹2.09 crore in FY26.
- Siva Kumar Ramaswami resignation reasons. The detailed reasons annexed to his 30 May 2025 resignation letter remain undisclosed as of the FY26 annual report.
- CWIP commissioning. The ₹1.07 crore capital work in progress as of 31 March 2026 needs to come on stream and contribute to earnings, given the 0.5% ROCE.
Bottom line: This is a disclosed, consistently audited record with real cash generation. The character of the risk is governance depth: absolute promoter control with guaranteed pay, a director who resigned with undisclosed reasons and returned as independent the next day, and statutory dues that remain in arrears in FY26. Watch the electricity duty judgment and whether the new capital work in progress begins to lift returns.