Loyal Textile Mills Limited has successfully concluded its postal ballot e-voting process, with shareholders providing overwhelming approval for a material related party transaction with Gruppo P&P Loyal S.p.A. The voting results, announced on March 31, 2026, demonstrate strong shareholder confidence in the proposed business arrangement.

Voting Results Overview

The postal ballot process concluded on March 30, 2026, with shareholders delivering a decisive mandate in favour of the proposed resolution. The comprehensive voting data reveals the extent of shareholder support across different categories.

Category-wise Voting Analysis

The voting results demonstrate strong support across all shareholder categories, with promoters and institutional investors showing unanimous backing for the resolution.

Resolution Details

The ordinary resolution pertained to material related party transactions between Loyal Textile Mills Limited and Gruppo P&P Loyal S.p.A. The promoter and promoter group expressed interest in this agenda item, as disclosed in the voting documentation.

Regulatory Compliance

The postal ballot process was conducted in strict accordance with regulatory requirements:

• Legal Framework: Section 108 and 110 of the Companies Act, 2013
• Rules Compliance: Companies (Management and Administration) Rules, 2014
• SEBI Regulations: Regulation 44 of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015
• E-voting Platform: Central Depository Services (India) Limited (CDSL)
• Scrutinizer: Mr. S Harikrishnan (CP No. 13740), Company Secretaries in Practice, Chennai

Scrutinizer's Validation

Mr. S Harikrishnan, the appointed scrutinizer, confirmed the validity of the voting process and results. The scrutinizer's report validated that all procedural requirements were met and the resolution was passed with the requisite majority. The e-voting platform was blocked after the voting period ended at 5:00 PM on March 30, 2026, and votes were unblocked in the presence of two independent witnesses.

The successful completion of this postal ballot process enables Loyal Textile Mills Limited to proceed with the approved material related party transaction with Gruppo P&P Loyal S.p.A, reflecting strong shareholder confidence in the company's strategic decisions.

Loyal Textile Mills Limited has announced a postal ballot notice for seeking shareholder approval on material related party transactions with its joint venture partner Gruppo P&P Loyal S.p.A for the financial year 2026-27. The notice, dated February 11, 2026, was communicated to stock exchanges on February 23, 2026, under Regulation 30 of SEBI listing requirements.

Transaction Details and Regulatory Compliance

The proposed transactions with Gruppo P&P Loyal S.p.A are expected to exceed 10% of the company's annual consolidated turnover as per the last audited financial statements. Under Regulation 23 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, such material related party transactions require prior approval of shareholders through an ordinary resolution.

The transactions encompass sale and purchase of goods and services, other income and expenses including incentives, commissions, discounts, and reimbursement of expenditures. All arrangements will be conducted at arm's length basis and are in the ordinary course of business.

E-Voting Schedule and Process

The company has established a comprehensive e-voting timeline for shareholder participation through Central Depository Services Limited (CDSL). The voting process will be conducted entirely through electronic means, with no physical postal ballot forms being distributed.

Only shareholders whose names appear in the Register of Members or List of Beneficial Owners as on the cut-off date of February 27, 2026, and who have registered email addresses with the company, registrar, or depositories will be eligible to participate in the voting process.

Corporate Governance and Approvals

The Audit Committee and Board of Directors, at their respective meetings held on February 11, 2026, have recommended the material related party transactions for shareholder approval. The board considers these arrangements commercially beneficial and in the best interest of the company.

Two directors of the company, Mrs. Valli M Ramaswami and Ms. Vishala Ramswami, are also directors of Gruppo P&P Loyal S.p.A, establishing the related party relationship. As per regulatory requirements, no related party will be permitted to vote on this resolution.

Scrutinizer Appointment and Contact Information

The company has appointed Mr. S. Harikrishnan (Membership No: 29583, CP No: 13740), a practicing Company Secretary, as the scrutinizer to ensure fair and transparent conduct of the postal ballot process. The scrutinizer will submit the report within two working days from the conclusion of voting.

Shareholders requiring technical assistance for e-voting can contact CDSL helpdesk at helpdesk.evoting@cdslindia.com or call the toll-free number 1800 21 09911. The postal ballot notice and detailed voting instructions are available on the company's website and stock exchange platforms.