A B Cotspin India Limited has announced the successful completion of its postal ballot process conducted on March 01, 2026, under Regulation 44 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company informed both NSE and BSE about the voting results through a formal communication dated March 03, 2026, signed by Company Secretary Rahul Kapasiya.

Postal Ballot Overview

The postal ballot was conducted exclusively through remote e-voting, with no physical postal ballot forms sent to shareholders. The e-voting period extended from January 31, 2026 (9:00 AM) to March 01, 2026 (5:00 PM), providing shareholders adequate time to participate in the voting process.

Resolution Details and Voting Results

The postal ballot focused on a single ordinary resolution seeking approval for material related party transactions with AB Cotton Textiles Private Limited. The resolution garnered overwhelming support from shareholders across all categories, achieving unanimous approval.

Voting Breakdown by Category

Scrutinizer's Report

CS Deepak Gupta, partner of DR Associates, Company Secretaries, served as the appointed scrutinizer for the postal ballot process. The scrutinizer's report confirmed the validity and transparency of the e-voting process conducted through the CDSL platform.

Key Findings from Scrutinizer's Report:

Compliance and Documentation

The company ensured full compliance with regulatory requirements by publishing advertisements in Financial Express (English) and Nawan Zamana (Punjabi) on January 31, 2026. The voting results and scrutinizer's report are available on the company's website at www.abcotspin.co.in and on CDSL's e-voting platform at www.evotingindia.com .

The postal ballot notice was dated January 27, 2026, and the company followed MCA circulars by conducting the process entirely through electronic mode without sending hard copies to shareholders. The scrutinizer completed the vote counting process on March 02, 2026, in the presence of independent witnesses who are not employees of the company.

The postal ballot results demonstrate strong shareholder confidence in the proposed material related party transactions, with unanimous approval across all voting categories and 74.76% overall participation rate.

AB Cotspin India Limited has announced a postal ballot notice dated January 27, 2026, seeking member approval for material related party transactions under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company requires shareholder consent for transactions with AB Cotton Textiles Private Limited, a related party where company directors Mr. Deepak Garg and Mr. Manohar Lal serve as director & member and director respectively.

Transaction Details and Structure

The proposed related party transactions encompass multiple business activities with an aggregate value ceiling of Rs. 85,00,00,000 (Rupees Eighty-Five Crore only) for a period of one year from the date of member approval. The transactions are structured to be conducted at arm's length and in the ordinary course of business.

The sale of goods primarily involves residual waste generated during cotton ginning and spinning processes, which AB Cotton Textiles Private Limited can utilize as raw material. Purchase transactions include hard waste from the related party's manufacturing process for recycled yarn production. Service transactions cover transportation services and job work arrangements between the entities.

E-Voting Process and Timeline

The company has engaged Central Depository Services (India) Limited (CDSL) to facilitate remote e-voting for all eligible members. The voting process follows a structured timeline to ensure proper member participation.

Members whose names appear in the Register of Members or Register of Beneficial Owners as on the cut-off date and have registered email addresses will receive the postal ballot notice electronically. The notice is also available on the company's website at www.abcotspin.co.in and CDSL's website at www.evotingindia.com .

Regulatory Compliance and Rationale

The transactions require member approval as they constitute material related party transactions under Regulation 23 of SEBI Listing Regulations. For companies with consolidated turnover up to Rs. 20,000 crore, transactions exceeding 10% of annual consolidated turnover are considered material. The proposed transactions represent 28.25% of the company's consolidated turnover for the immediately preceding financial year.

The Board of Directors, based on Audit Committee recommendations in their meeting held on January 27, 2026, has approved the proposal. The transactions are designed to optimize resource utilization, improve operational efficiency, and ensure reliable buyer-supplier relationships between the related entities. Both companies operate in complementary yarn manufacturing segments, enabling efficient resource sharing and capacity utilization.

Previous Transaction History

The company has maintained ongoing business relationships with AB Cotton Textiles Private Limited. During FY 2024-25, total transactions amounted to Rs. 32,35,64,498, including sale of goods (Rs. 30,32,43,911), purchase of goods (Rs. 1,89,92,855), rendering services (Rs. 10,60,825), and availing services (Rs. 2,66,907). In the current financial year up to the quarter preceding this approval, transactions totaled Rs. 29,99,95,464.

Key Stakeholder Information

Mr. Rahul Kapasiya, Company Secretary & Compliance Officer (Membership No. A70811), has signed the postal ballot notice. The scrutinizer will submit results within two working days from the last e-voting date, with results being communicated to stock exchanges and published on relevant websites. Related parties as defined under SEBI Listing Regulations will not be eligible to vote on this resolution, ensuring independent member decision-making.