Padam Cotton Yarns Limited shareholders have approved four special resolutions through a postal ballot process that concluded on Aug 1, 2026. The most material outcome is the Board’s enhanced borrowing power, now raised to ₹100 crore under Section 180(1)(C) of the Companies Act, 2013. This increase provides the company with greater financial flexibility for future capital requirements. Additionally, shareholders approved shifting the company’s registered office from Haryana to Gujarat and altering the main object clause of the Memorandum of Association.

The voting results were submitted to BSE Limited on Aug 4, 2026, in compliance with Regulation 44(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. A. Goyal & Associates, led by Company Secretary Ashish Goyal, served as the independent scrutinizer for the remote e-voting process conducted via Central Depository Services Limited (CDSL). The voting window ran from July 3, 2026, at 9:00 AM IST to Aug 1, 2026, at 5:00 PM IST. Votes were unblocked on Aug 3, 2026, in the presence of two independent witnesses.

Resolution Outcomes

All four resolutions were passed with requisite majority. The shift of the registered office and alteration of the main object clause received overwhelming support, exceeding 99% approval. The borrowing power limit increase also secured strong backing at 95.71%. The resolution to create a mortgage or charge under Section 180(1)(A) saw slightly lower but still decisive support at 89%.

Voting Details

The postal ballot notice was issued on May 30, 2026, with notices dispatched on July 2, 2026. Shareholders as of the cut-off date of June 5, 2026, were eligible to vote. All voting was conducted remotely via the CDSL e-voting platform; no votes were cast through polling paper at a physical meeting. Dinesh Shreevastav, Whole-Time Director, signed off on the submission of the results along with the scrutinizer’s report.

What the Numbers Show

The high approval rates across all resolutions indicate strong shareholder alignment with management’s strategic direction. The near-unanimous support for the registered office shift to Gujarat suggests confidence in the operational benefits of this relocation. While the mortgage resolution faced slightly more opposition (11% against), it still comfortably cleared the threshold, reflecting broad acceptance of the proposed financial structuring changes.

Padam Cotton Yarns Limited has replaced its statutory auditor after M/s. SVJK & Associates resigned over a disagreement regarding audit fees for the financial year ending March 31, 2027. The company’s Board of Directors accepted the resignation effective July 27, 2026, and simultaneously appointed M/s. Piyush Kothari & Associates to fill the casual vacancy for the fiscal year 2026-27 (FY26-27). This change impacts the oversight of the company’s financial reporting for the upcoming year, with the new appointment requiring ratification by shareholders at the ensuing general meeting.

The Board meeting took place on July 27, 2026, at the corporate office in Ahmedabad, Gujarat. The decision was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Board also noted the recommendations of the Audit Committee regarding the new appointment. The filing references SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, and SEBI Master Circular No. Ho/49/14/14(7)2025-CFD-POD2/I/3762/2026, last updated on January 30, 2026.

Reasons for Resignation

M/s. SVJK & Associates, Chartered Accountants (FRN: 135182W), cited that the existing audit fees were not commensurate with the time, effort, and professional resources required. In their resignation letter dated July 27, 2026, the firm stated that discussions regarding fees for the financial year ending March 31, 2027, did not reach a mutually acceptable conclusion. They highlighted the company’s growing scale of operations, increasing business complexity, and evolving regulatory environment as factors necessitating higher resources. The firm confirmed there were no other material reasons for the resignation.

SVJK & Associates had completed the statutory audit for the financial year ended March 31, 2026, issuing their report on May 30, 2026. The firm was originally appointed on June 30, 2025, with a term scheduled to expire on September 30, 2026.

New Auditor Appointment

The Board approved the appointment of M/s. Piyush Kothari & Associates, Chartered Accountants (FRN: 140711W), as the new statutory auditor. This appointment is subject to shareholder approval at the ensuing annual general meeting. The firm will hold office until the conclusion of that meeting.

Piyush Kothari & Associates is a peer-reviewed partnership firm established in 2015 by CA. Piyush Kothari. The firm operates from an office in Ahmedabad and provides services in accounts, taxation, finance, audits, and company law. It maintains associations with experts in various fields including merchant banking and legal advisory.