Sarla Performance Fibers Limited has announced a postal ballot process to seek shareholder approval for critical corporate resolutions that will enhance the company's financial flexibility and operational capabilities.

E-Voting Schedule and Process

The company has established a comprehensive timeline for the postal ballot process, with remote e-voting being the exclusive method for shareholder participation.

The postal ballot notice, dated February 04, 2026, has been sent electronically to members whose email addresses are registered with the company or depositories. Physical postal ballot forms will not be accepted, in compliance with MCA circulars.

Special Resolution 1: Enhanced Borrowing Authority

The first special resolution seeks to increase the company's borrowing limits significantly to support business expansion and working capital requirements.

The previous borrowing authorization was granted at the 25th Annual General Meeting held on September 28, 2018. The enhanced limit of ₹550 crores will provide the company with greater financial flexibility to meet expanding business requirements, working capital needs, and future growth plans as recommended by the Board of Directors at their meeting on February 04, 2026.

Special Resolution 2: Asset Security Creation

The second resolution authorizes the Board to create charges, mortgages, or encumbrances on the company's movable and immovable properties to secure the enhanced borrowing limits.

This co-extensive authority aligns with the proposed borrowing limit increase and enables the company to:

• Mortgage, pledge, or hypothecate company assets
• Create charges on present and future properties
• Secure borrowings including loans, debentures, and other debt instruments
• Cover interest, costs, charges, and related expenses

Corporate Governance and Compliance

The company has appointed NSDL to provide remote e-voting facilities, ensuring secure and transparent shareholder participation. Members holding shares in physical mode who have not registered their email addresses are requested to update their details with the company.

The scrutinizer will submit the voting results within two working days of the e-voting period's conclusion. Results will be communicated to BSE Limited and National Stock Exchange of India Limited, and published on the company's website and NSDL's e-voting portal.

Shareholder Information

Voting rights will be proportionate to shareholding in the paid-up equity share capital as of the cut-off date. The resolutions require special resolution approval, and if passed, will be deemed effective from March 13, 2026. The Board has confirmed that no directors, key managerial personnel, or their relatives have any financial interest in these resolutions beyond their shareholding and directorship positions.

Sarla Performance Fibers Limited announced that its board of directors has approved the sale of preference shares in its wholly owned subsidiary during a meeting held on February 04, 2026. The decision involves the divestment of preference shareholding in Sarla Flex Inc., USA, while maintaining complete equity control of the subsidiary.

Transaction Details

The board approved the sale of specific preference shares with substantial face values but at a significantly reduced consideration price.

Buyer and Transaction Structure

The preference shares will be sold to STAR EXIM GENERAL TRADING L.L.C., which does not belong to the promoter, promoter group, or group companies. The transaction is structured outside any scheme of arrangement and does not constitute a related party transaction.

Subsidiary Performance and Impact

Sarla Flex Inc., USA has remained non-operational since 2017, contributing minimally to the parent company's consolidated performance.

Continued Ownership Structure

Despite the sale of preference shares, Sarla Performance Fibers Limited will continue to maintain complete operational control of its US subsidiary. The company emphasized that upon completion of the transaction, it will cease to hold any preference shares in Sarla Flex Inc., USA, but will continue to hold 100% of the equity share capital, ensuring the subsidiary remains wholly owned.

Board Meeting Details

The board meeting was conducted on Wednesday, February 04, 2026, commencing at 06:38 P.M. and concluding at 07:00 P.M. The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, with all required documentation provided to both NSE and BSE.