Gujarat Cotex Limited held its Annual General Meeting on September 28, 2026, in Silvassa. The meeting adopted the audited financial statements for FY26 and approved the re-appointment of Shaileshkumar Jayantkumar Parekh as Managing Director.

The proceedings commenced at 9:30 am and concluded at 11:30 am at Hotel Soubhagya Inn. The Chairman addressed the members regarding the company's operations and the resolutions set out in the notice convening the AGM.

Key resolutions passed

Shareholders considered several ordinary and special business items during the session:

• Adoption of audited financial statements for the year ended March 31, 2026.
• Re-appointment of Shaileshkumar Jayantkumar Parekh (DIN: 01246270) as Director retiring by rotation.
• Re-appointment of Vidya Pramod Patil (DIN: 09287709) as Independent Director.
• Appointment of Parul Rajesh Manubarwala (DIN: 11896490) as Independent Director.
• Appointment of K. Dalal & Co. as Secretarial Auditors.

Voting mechanism and scrutiny

The company provided remote e-voting facilities to members pursuant to SEBI Listing Regulations. Members who did not vote electronically were permitted to cast votes via ballot paper sent with the annual report.

Kunjal Dalal, a practicing company secretary, served as the scrutinizer for both the poll process and remote e-voting. The results of the e-voting are scheduled to be disseminated to stock exchanges and uploaded to the company website upon receipt of the scrutinizer's report.

Gujarat Cotex reported a 41% year-on-year rise in revenue from operations to ₹3,843.24 lakh for the financial year ended March 31, 2026. Despite the top-line growth, net profit after tax declined by 54% to ₹10.22 lakh, compared to ₹22.13 lakh in the previous year.

The company’s standalone annual report highlights a significant shift in its revenue mix. While textile fabric sales dipped to ₹2,268.21 lakh from ₹2,706.78 lakh in FY25, the business recorded ₹1,522.81 lakh in sales of agriculture items, a segment that contributed zero revenue in the prior year.

Financial Performance

The divergence between revenue growth and profit contraction was driven by rising operational costs and specific non-recurring charges. Other expenses surged to ₹101.86 lakh from ₹28.01 lakh in FY25, primarily due to a ₹79.64 lakh provision for bad debts. Additionally, the company wrote off ₹24.72 lakh of preliminary expenses against retained earnings, correcting a prior-period accounting error identified by auditors.

Balance Sheet and Auditor Qualifications

Total assets decreased by 41% to ₹1,832.22 lakh, reflecting a substantial reduction in other current assets, which fell from ₹1,653.05 lakh to ₹212.25 lakh. This decline was largely due to the settlement of advances given for plots of land and loans. Long-term borrowings also dropped significantly to ₹37.29 lakh from ₹329.74 lakh.

Independent auditors Pawan Siddharth & Co issued a qualified opinion on the financial statements. The qualification stems from the company’s failure to retrospectively restate comparative figures for a prior-period error related to ROC fees capitalized as preliminary expenses. Furthermore, auditors flagged investments totaling ₹74.75 lakh in two entities—Sonpal Cement and Gujarat Cotex Finlease—as potentially non-operational, recommending either write-off or provision.

Corporate Governance Updates

The Board proposed the re-appointment of Shailesh J. Parekh as a director retiring by rotation. It also recommended appointing Ms. Parul Rajesh Manubarwala as an independent director and re-appointing Ms. Vidya Pramod Patil for a five-year term. The company appointed M/s. K. Dalal & Co. as secretarial auditors for five years, following a rights issue that increased its paid-up capital beyond the regulatory threshold.