Eastern Silk Industries has released a revised annual report for FY26 to address inadvertent typographical errors identified in the non-statutory section of the original filing.

The company notified the National Stock Exchange of India Ltd and BSE Limited on August 22, 2026, regarding the correction. This disclosure follows an initial submission of the annual report on August 7, 2026.

Regulatory Compliance

The revision was made in accordance with Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The updated filing includes the corrected annual report along with the notice for the 80th Annual General Meeting.

Nitin Dubey, Company Secretary and Compliance Officer, confirmed the release of the revised documents. The updated annual report is accessible via the company’s official website.

Eastern Silk Industries Limited reported a cash loss of ₹278.98 lakhs for the financial year ended March 31, 2026 (FY26), marking a shift from the profitability recorded in the preceding year. The textile manufacturer, which operates under ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018 certifications, generated total income of ₹2,581.10 lakhs during the period. The loss was primarily driven by employee benefits expenses of ₹1,569.75 lakhs and material costs of ₹921.62 lakhs, alongside a significant provision for expected credit losses on trade receivables. Despite the operational headwinds, the company maintained a balance sheet size of ₹13,372.52 lakhs as of March 31, 2026.

The financial results were audited by M/s B K Shroff & Co., Chartered Accountants, who resigned effective June 18, 2026. M/s Vyas & Vyas, Chartered Accountants, have been appointed as statutory auditors effective July 07, 2026, to fill the casual vacancy until the conclusion of the 80th Annual General Meeting (AGM). The AGM is scheduled for September 26, 2026, to be conducted via Video Conferencing (VC) / Other Audio-Visual Means (OAVM) in compliance with Ministry of Corporate Affairs (MCA) circulars. Shareholders can participate in remote e-voting through National Securities Depository Limited (NSDL) between September 20 and September 25, 2026.

Financial Performance and Balance Sheet

The company’s total income stood at ₹2,581.10 lakhs for FY26. Foreign exchange earnings contributed ₹1,811.24 lakhs to this total, while foreign exchange outgo amounted to ₹656.52 lakhs. Finance costs remained minimal at ₹0.77 lakhs. However, the bottom line was impacted by the recognition of a provision for expected credit losses of ₹278.37 lakhs against disputed trade receivables.

The balance sheet reflects a substantial reliance on interest-free funding. Non-current borrowings totaled ₹7,637.30 lakhs, comprising an interest-free unsecured loan of ₹6,067.30 lakhs from the Successful Resolution Applicant (SRA), Baumann Dekor Private Limited, and ₹1,570.00 lakhs from directors. Current liabilities included trade payables of ₹143.62 lakhs and other financial liabilities of ₹936.32 lakhs. The paid-up equity share capital was reduced to ₹100.00 lakhs (50,00,000 shares) following the implementation of the resolution plan, with promoter Baumann Dekor Private Limited holding 92.23% of the stake.

Key AGM Resolutions and Related Party Transactions

The 80th AGM agenda includes several critical special resolutions requiring shareholder approval. These include the conversion of outstanding loans from Baumann Dekor Private Limited into fully paid-up equity shares of ₹2/- each, pursuant to the Resolution Plan approved by the National Company Law Tribunal (NCLT) on January 31, 2024. Additionally, shareholders will vote on availing a non-interest-bearing unsecured loan of up to ₹50 crores from Director and Promoter Mr. Ajay Bikram Singh, with an option to convert the loan into equity shares.

The Board also seeks approval to enhance investment, loan, and guarantee limits under Section 186 of the Companies Act, 2013, up to ₹2,000.00 crores outstanding at any point in time. A corporate guarantee of up to ₹35 crores is proposed for credit facilities availed by Baumann Dekor Private Limited. Furthermore, the existing investment limit for Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) is proposed to be increased from 10% to 24% of the paid-up equity share capital.

Material related party transactions were placed before the Audit Committee and shareholders for omnibus approval for FY27-FY29. These transactions involve the sale, purchase, or supply of goods and services with entities including Warps and Wefts FZC, Baumann Dekor FZC, Consilio Resource Private Limited, and Shakuntla Sampling. The estimated transaction value is ₹20 crores per annum for most entities and ₹5 crores for Consilio Resource Private Limited. All transactions are stated to be on an arm’s length basis and in the ordinary course of business.