SEL Manufacturing Company Limited , a once-prominent player in the textile industry, has reported alarming financial results for the quarter ended September 30, 2025, painting a grim picture of the company's current state and future prospects.

Financial Performance

The company's financial results reveal a dire situation:

All figures in Rs crore

Operational Challenges

SEL Manufacturing is grappling with severe operational issues:

• Major plants remain shut during the quarter
• Shifted to job work operations at one unit instead of manufacturing activities
• Accumulated total losses of Rs 72,616 crore since implementing its resolution plan

Debt Default

The company's financial distress is further evidenced by significant debt defaults:

• Defaulted on quarterly installments of Rs 21,500 crore due from September 2023 to September 2025
• Unpaid interest of Rs 15,214 crore for the period July 2023 to September 2025

Corporate Insolvency Resolution Process

In light of the company's financial turmoil:

• Shareholders passed a resolution to initiate Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code 2016
• The extraordinary general meeting for this resolution was held on October 13, 2023

Auditors' Concerns

The company's auditors have expressed material uncertainty about SEL Manufacturing's ability to continue as a going concern, citing:

• Severe liquidity constraints
• Inability to meet financial obligations

Board Meeting and Results Approval

Despite the challenging circumstances, the company's Board of Directors met on November 10, 2025, to approve the unaudited financial results for the quarter and half-year ended September 30, 2025. The meeting commenced at 12:30 P.M. and concluded at 03:25 P.M.

The financial crisis at SEL Manufacturing underscores the challenges faced by the textile industry and raises questions about the company's turnaround efforts. Stakeholders will be closely watching the outcome of the insolvency resolution process and any potential restructuring plans.

SEL Manufacturing Company Limited held its 25th Annual General Meeting (AGM) on September 30, 2025, where shareholders approved several key appointments to the company's board of directors. The meeting, which took place through video conferencing, saw the approval of both re-appointments and new additions to the board.

Board Appointments and Re-appointments

The shareholders of SEL Manufacturing approved the following changes to the board composition:

1. Re-appointment of Non-Executive Director: Mr. Shashankrai (DIN: 08916697) was re-appointed as a Non-Executive, Non-Independent Director. Mr. Shashankrai, who was liable to retire by rotation, offered himself for re-appointment and received shareholder approval.

2. New Independent Directors: Two new Independent Directors were appointed for five-year terms, effective from August 5, 2025:

   • Ms. Meghna Mahendra Savla (DIN: 09152133)
   • Ms. Menka Rajdev Yadav (DIN: 11220201)

3. New Non-Executive Director: Mr. Dharminder Pal (DIN: 11229145) was appointed as a Non-Executive, Non-Independent Director for a five-year term, also commencing from August 5, 2025.

Professional Backgrounds of New Directors

The newly appointed directors bring diverse expertise to SEL Manufacturing's board:

• Ms. Meghna Mahendra Savla: A qualified Company Secretary with robust experience in corporate compliance, governance, and regulatory affairs. She has been serving as an Independent Director on the boards of multiple listed companies since 2021.

• Ms. Menka Rajdev Yadav: Also a qualified Company Secretary with extensive experience in corporate compliance, secretarial practices, and regulatory affairs. She possesses a strong understanding of the Companies Act, SEBI Regulations, and other applicable corporate laws.

• Mr. Dharminder Pal: Described as a results-driven businessman with a strong entrepreneurial spirit and a proven track record in building and managing successful ventures. He is skilled in strategic planning, business development, and operations.

Additional AGM Proceedings

The AGM, which lasted from 11:00 AM to 11:12 AM IST, also addressed other matters:

• The company provided e-voting facilities for shareholders, both before and during the AGM, to ensure fair and transparent voting on all resolutions.
• M/s Lal Ghai & Associates, through its partner Mr. Sumit Ghai, was appointed as the Scrutinizer for the e-voting process.
• The meeting included the adoption of financial statements, ratification of cost auditors' remuneration, and the appointment of secretarial auditors.

Management Commentary

Ms. Meghna Mahendra Savla, who chaired the AGM, addressed the shareholders and provided an update on the company's current status, performance, and challenges. She expressed optimism about the company's future, citing strong confidence in upcoming improvements.

The board changes and AGM proceedings reflect SEL Manufacturing's commitment to strengthening its governance structure and adapting to the evolving business landscape. The diverse expertise of the newly appointed directors is expected to contribute to the company's strategic direction and compliance efforts in the coming years.