Harish Textile Engineers has announced several important corporate decisions following its Board of Directors meeting held on September 4. The company has scheduled its 15th Annual General Meeting (AGM) for September 30, to be conducted virtually through video conferencing.

Key Highlights

• Annual General Meeting: The 15th AGM is set for September 30, at 11:00 AM IST via video conferencing.
• Director Re-appointment: Mr. Sandeep Kirtikumar Gandhi, Managing Director, will seek re-appointment at the AGM after retiring by rotation.
• Secretarial Auditor Appointment: M/s. D N Vora & Associates appointed as Secretarial Auditors for five consecutive years.
• E-voting Period: Shareholders can cast their votes electronically from September 25 (9:00 AM) to September 29 (5:00 PM).
• Book Closure: Share transfer books will remain closed from September 24 to September 30.

Corporate Governance Measures

The Board has approved several resolutions that will be presented for shareholder approval at the upcoming AGM:

1. Ratification of Cost Auditor remuneration.
2. Approval of material related party transactions.
3. Proposal for approval of the company's borrowing powers.

Secretarial Auditor Appointment Details

The appointment of M/s. D N Vora & Associates as Secretarial Auditors is a significant move towards ensuring compliance with regulatory requirements. Key details include:

• Auditor: CS Dipali Vora, Proprietor of M/s. D N Vora & Associates
• Term: Five years
• Qualifications: Associate Member of The Institute of Company Secretaries of India (ICSI)
• Experience: Proficient in company law, SEBI regulations, and various business laws

AGM Participation and Voting

Shareholders should note the following important dates:

• Cut-off Date: September 23 (for e-voting eligibility and AGM participation)
• E-voting Period: September 25 (9:00 AM) to September 29 (5:00 PM)
• AGM Date: September 30 at 11:00 AM IST

The company has appointed National Securities Depository Limited (NSDL) to facilitate the virtual AGM proceedings, ensuring compliance with regulatory guidelines.

Harish Textile Engineers continues to adapt to the evolving corporate landscape, embracing digital solutions for shareholder engagement while maintaining robust governance practices.

Harish Textile Engineers Limited, a Mumbai-based textile machinery manufacturer, has reported a significant drop in revenue for the quarter, while simultaneously achieving profitability.

Sharp Revenue Decline

The company's total income for the quarter stood at Rs. 61.00 lakhs, marking a substantial 94.6% decrease from Rs. 1,127.00 lakhs in the corresponding quarter of the previous year. This steep decline in revenue highlights the challenging market conditions faced by the textile machinery sector.

Surprising Profitability

Despite the dramatic fall in revenue, Harish Textile Engineers managed to turn profitable. The company reported a net profit after tax of Rs. 28.00 lakhs for the quarter, a significant improvement from a loss of Rs. 2.00 lakhs in the same period last year. This unexpected shift to profitability in the face of declining revenues suggests effective cost management and operational efficiency measures implemented by the company.

Improved Profit Margins

The net profit margin saw a remarkable improvement, jumping from -0.2% in the previous year's quarter to 45.9% in the current quarter. This substantial increase in profitability, even with reduced revenue, indicates a successful restructuring of the company's cost base or potentially high-margin projects completed during the quarter.

Earnings Per Share

The company's diluted earnings per share (EPS) increased to Rs. 0.19, up from Rs. 0.05 in the corresponding quarter of the previous year, reflecting the positive impact of the profit on shareholder returns.

Financial Disclosure

In compliance with regulatory requirements, Harish Textile Engineers Limited published its unaudited quarterly results in Business Standard and Pratahkal newspapers. The company also filed the results with the BSE Limited on August 19, as per the LODR (Listing Obligations and Disclosure Requirements) regulations.

Market Implications

While the company has shown resilience by achieving profitability, the substantial revenue decline may raise concerns among investors about the overall demand for textile machinery and the company's market position. Stakeholders will likely be watching closely to see if Harish Textile Engineers can maintain its profitability while working to recover its revenue in the coming quarters.

The textile machinery sector's performance in the coming months will be crucial in determining whether this quarter's results represent a temporary setback or a more prolonged challenge for companies like Harish Textile Engineers Limited.