To,
The Members,
Your Directors have pleasure in presenting the 106th Annual Report of the Company together with the Audited Standalone and Consolidated Statements of Accounts for the financial year ended 31st March, 2025.
1. Financial Results
Particulars | 2024-25 | 2023-24 |
Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) | (214.93) | (418.41) |
Less:- Interest and Financial Charges | 47.46 | 54.65 |
Profit before depreciation and tax | (262.39) | (473.06) |
Less:- Depreciation and Amortization | 367.64 | 365.85 |
Profit Before Tax | (630.03) | (838.91) |
Less:- Provision for Taxation (Net) | 0.35 | 12.55 |
(629.68) | (826.36) | |
Add:- Deferred Tax Assets | 161.86 | 196.73 |
Profit After Tax (PAT) | (467.82) | (629.63) |
Add:- Other Comprehensive Income | 82.56 | 35.89 |
Total Comprehensive Income for the year | (385.26) | (593.74) |
Add:- Surplus brought forward | 790.42 | 1384.16 |
Amount available for Appropriation | 405.16 | 790.42 |
Less :- Appropriation:- | ||
General Reserve | NIL | NIL |
Dividend | NIL | NIL |
Total Appropriation | NIL | NIL |
Balance carried to Balance Sheet | 405.16 | 790.42 |
2. DIVIDEND
Your Directors have decided not to declare any dividend for the FY 2024-25.
3. TRANSFER TO RESERVES
No amount has been transferred to General Reserves.
4. CHANGE IN THE NATURE OF BUSINESS
There was no change in the nature of business of the Company during the financial year 2024-25.
5. REVIEW OF BUSINESS OPERATIONS/STATE OF COMPANYS AFFAIRS
Market Conditions and Cotton Price Volatility
PBM Polytex continues to operate under intense pressure due to persistent disparities between domestic and international cotton prices. As of August 2025 Indian cotton prices (Shankar-6 quality) are trading between 56,600 and 57,700 per candy , equivalent to 82 85 cents/lb, significantly above global benchmarks. Global cotton prices remain subdued, with the NY/ICE benchmark at 67 cents/lb and the A Index near 78 cents/lb, reflecting a stable but lower international market.
However, the 50% tariff imposed by the United States on Indian textile exports with effective, August 27, has severely impacted export viability, particularly for yarn and ready-made garments.
Operational Challenges
Absenteeism remains a critical issue. Both units (Petlad and BLP) continue to face a shortage of skilled workers and high absenteeism, resulting in production losses. Industry-wide, absenteeism in spinning mills ranges from 11 20% daily, driven by strenuous working conditions and low job satisfaction. The HR department is actively recruiting and training apprentices to stabilize manpower and restore production efficiency.
Market Dynamics & Cost Pressures
Yarn Realizations remain under pressure due to Surplus domestic supply and Weak global demand, exacerbated by US tariffs. The Company has been unable to pass on elevated input costs to customers, leading to margin compression. However, measures are underway to reduce expenses across power, stores, and miscellaneous overheads.
Strategic Outlook
PBM Polytex is navigating a volatile macroeconomic and policy landscape. Key strategic priorities include Policy Advocacy: Supporting industry efforts to extend the cotton import duty waiver beyond September to sustain competitiveness; and Operational Efficiency: Intensifying cost control and workforce stabilization efforts to protect margins.
Management Commitment
Despite formidable challenges, the management remains focused on minimizing losses, restoring profitability and engaging with policymakers and industry bodies to shape a more favourable operating environment.
6. INDEPENDENT DIRECTORS DECLARATION
All the Independent Directors of the Company have given their declarations that they meet the criteria of Independence as prescribed under section 149(6) of the Companies Act, 2013.
7. DIRECTORS
In accordance with the provisions of Section 152 of the Companies Act, 2013 and Articles of Association of the Company, Shri Gopal Patodia (DIN: 00014247), Managing Director and Shri Krishan Kumar Patodia (DIN: 00027335), Director the Company are liable to retire by rotation at the ensuing Annual General Meeting ("AGM") of the Company and being eligible, offer themselves for re-appointment.
The details in respect of qualification, area of expertise etc. of all the above appointee directors are provided in annexure to the notice. You are therefore in the interest of the company requested to accord your consent to these resolutions. Neither of these Directors are disqualified under Section 164(2) of the Act.
8. KEY MANAGERIAL PERSONNEL
Pursuant to the provisions of Sections 2(51) and 203 of the Act read with Rule 8 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the following persons are acting as Key Managerial Personnel of the Company:-
Shri Gopal Patodia | : Managing Director |
Shri Mohan Kumar Patodia | : Managing Director cum Chief Financial Officer |
Shri Amit Patodia | : Senior President cum Chief Executive Officer |
Ms. Kirti Chauhan | : Company Secretary cum Compliance Officer upto 11th March 2025 |
Ms. Swati Billore | : Company Secretary cum Compliance Officer w.e.f. 11th March 2025 |
9. FORMAL ANNUAL EVALUATION
Pursuant to the provisions of Section 134(3)(p) of the Act and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board has carried out an annual performance evaluation of its own performance, Boards Committees, as well as, Directors individually including performance of Independent
Directors, after seeking inputs from all the Directors/Committee members and finds it satisfactory.
10. BOARD MEETINGS
The Board of Directors have met 7 times during the financial year 2024-25.
The details of Board Meetings held are disclosed in Corporate Governance Report appended to Directors Report.
11. DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the Provisions of Section 134(3)I of the Act, your Directors confirm that
1. in the preparation of annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures;
2. the accounting policies adopted are consistently applied and judgments made and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the profit of the company for the said period;
3. proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of this Act, for safeguarding the assets of the Company and for preventing & detecting errors & frauds and other irregularities;
4. annual accounts have been prepared on a going concern basis; 5. internal financial controls (as required by explanation to section 134(5)I of the Act) is being followed by the Company and that such internal financial controls are adequate and were operating effectively;
6. Proper systems have been devised to ensure compliance with all other applicable laws and that such systems are adequate and operating effectively.
12. SHARE CAPITAL
There was no change in the authorized/issued or paid up share capital of the company during the year.
13. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186 OF THE ACT
The Company had granted loan of Rs. Three Crores to its Associate Company Eurotex Industries & Exports Limited. As on 31st March 2025 the Loan amount outstanding was Rs. 36555452/- including the Interest Rs. 6555452/-. Further, the said loan has been repaid in full in the month of July 2025 and the interest amount of Rs. 3324384/- is outstanding as on 13th August 2025 i.e. the date of this report. Investments in mutual fund as on 31.03.2025 was NIL.
Short Term deposits with banks have been made, the details of which are given under Note pertaining to Cash and Bank Balances.
The Company is holding 46,00,000 Preference shares of Rs. 10/- each aggregating to Rs. 4.60 Crores in Eurotex Industries & Exports Limited. The said Company since last more than five years due to inadequate profit/loss has not declared dividend on Preference Shares.
All these investments including long term investments are within the limits prescribed under Section 186 of the Act.
14. INDUSTRIAL RELATIONS
During the year under review, the Industrial relations remained cordial at both the Petlad and Borgaon Units of the Company.
15. DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013
The Company has, in place, an Anti-Sexual Harassment Policy in line with the requirements of The Sexual Harassment of Women at the Workplace (Prevention, Prohibition and Redressal) Act, 2013. Internal Complaints Committee ("Committee") has been set up to redress the complaints received regarding sexual harassment.
Status of cases reported during the FY 2024-25:
Particulars | No. |
Number of complaints received during the FY 2024-25 | 0 |
Number of complaints resolved during the FY 2024-25 | 0 |
Number of complaints pending over 90 days | 0 |
16. COMPLIANCE WITH THE PROVISIONS OF MATERNITY BENEFIT ACT, 1961
The organization remains fully committed to upholding the rights and welfare of women employees as mandated under the Maternity Benefit Act, 1961. During the year, we have ensured strict adherence to all statutory provisions of the Act. The organization continues to foster a supportive and inclusive work environment, ensuring that all women employees are aware of and able to exercise their rights under the Act. No complaints or violations were reported during the year.
17. PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES
The information required pursuant to section 197 (12) of the Act read with Rule 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 in respect of the employees of the Company is given in Annexure "A".
There is no Employee in the company who was / is drawing remuneration more than managerial personnel. Further, there is no employee who has drawn remuneration more than Rs. 102.00 Lakhs p.a. or 8.50 Lakhs p.m. as described under Rules Rule 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.
18. SUBSIDIARY AND ASSOCIATE COMPANIES
The Company does not have any Subsidiary Company. However, the Company holds 22,31,980 Equity Shares of Rs. 10/- per share and also 46,00,000; 6% Non-Cumulative Non-Convertible Redeemable Preference Shares of Rs. 10/- per share of Eurotex Industries and Exports Limited (CIN : L70200MH1987PLC042598) having its registered office at 809 Raheja Chambers, 8th Floor, 213 Nariman Point, Mumbai and Spinning Unit at Kolhapur. Form AOC 1 as required under section 129(3) of the Act is attached as Annexure "A (1)".
Accordingly, the said Eurotex Industries and Exports Limited is an Associate Company of our Company as defined under section 2(6) of the Act by virtue of the fact that our Company holds 25.5087% equity share of that Associate Company.
In pursuance of section 129 of the Companies Act, 2013 including any amendment and/or modifications thereof read with other applicable provisions of the Financial Statements of our Company and the associate company has been consolidated and accordingly, the share of our Company in Reserves and Surplus of the Associate Company upto the period 31.03.2014 has been accounted and exhibited under the head "Reserves and Surplus" as Capital Reserves, and the results from the F.Y. 2014-15 to 2024-25 have been incorporated in Consolidated Statement of Profit and Loss (of relevant years). The corresponding effect of the above has been given in the value of shares of the Associate Company held by us and has been shown under Note No. 5 of Balance Sheet of the Consolidated Balance Sheet under Investments (Non
Current).
The working of the Mill of the said Company is at grinding halt due to the continuous illegal strike by the workers since long and the company is suffering huge losses. As per the provisions of Industrial Disputes Act, 1947, services of the remaining 38 workers who were sitting idle were terminated as the mill was closed following the legal provisions from 30.03.2022. Now, Eurotex do not have any permanent workmen in the mills and only have a few essential staff. Presently, Eurotex has one major legal case with MSEB regarding a dispute already decided in its faovur by MERC and APTEL, Delhi and where the Honorable Supreme Court has lastly decided in its favour but the order has been wrongly interpreted by MSEB as being in their favour and the matter is now pending with Honorable APTEL, Delhi. Plant and machineries in the mills are being maintained in proper shape. Some of the machines in the Plant are being gradually sold as and when they get suitable buyers and price since yarn markets all over the world including in India continues to be in bad shape. The Real Estate business operations are continuing satisfactorily. The loans and dues of Banks and financial institutions have been fully paid.
The portion of our companys share in profit/losses of the associate company has been shown in Form AOC-1 as required under the Act.
19. RELATED PARTY TRANSACTIONS
All Related Party Transactions as entered into during the financial year were at Arms Length basis and were in ordinary course of business. No materially significant related party transactions were entered/effected/undertaken by the Company with Promoters, Directors, Key Managerial Personnel, other designated persons or other related parties, which may have potential conflict with the interest of the Company at large.
All related party transactions were approved by the Audit Committee, as well as, the Board of Directors.
The summary of such transactions is given in Note No. 41 of Notes forming part of Accounts.
The Policy on Related Party Transactions has been uploaded on the Companys Website, web-link of which is https://pbmpolytex.com/upload/investor_lodr_reg/policy-on-related-party-transactions.pdf
Form AOC 2 as required under section 134 (3) (h) of the Act read with rule 8(2) of the Companies (Accounts) Rules, 2014 is attached as Annexure "A (2)".
During the year, the Company has made changes in the policy to bring them in line with the amendments in the SEBI Listing Regulations, 2015.
20. DISCLOSURE ON CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO.
In terms of Sub-section 3(m) of Section 134 of the Act read with Rule 12(1) of the Companies (Management and Administration) Rules, 2014, particulars relating to conservation of energy, technology absorption, foreign exchange earnings and outgo are given in Annexure "B" forming part of this report.
21. ANNUAL RETURN AND EXTRACT OF ANNUAL RETURN
As per provisions of Section 92 of the Companies Act, 2013 read with Rules made thereunder, a draft Annual Return of the Company for the financial year 2024-25 is available on the website of the Company, web-link of which is https://pbmpolytex.com/investor-disc-reg-46-lodr/2/.
22. CORPORATE SOCIAL RESPONSIBILITY ("CSR")
Pursuant to Section 135 of the Companies Act, 2013 and the Companies (Corporate Social Responsibility Policy) Rules, 2014, every company meeting the specified financial thresholds is required to constitute a Corporate Social Responsibility Committee and undertake CSR activities as prescribed.
For the financial year ended 2024-25, the provisions of Section 135 of the Companies Act, 2013 relating to Corporate Social Responsibility are not applicable to the Company. Accordingly, the Company has not constituted a CSR Committee, nor is it required to formulate a CSR Policy or undertake CSR initiatives during the year.
The Company continues to remain committed to ethical business practices, sustainability, and stakeholder engagement, and will comply with CSR requirements as and when they become applicable.
23. VIGIL MECHANISM / WHISTLE BLOWER POLICY
Your Company has a well-defined Whistle Blower Policy and has established Vigil Mechanism which provides adequate safeguards against victimisation of Reporting persons who follow such mechanism and also make provisions for direct access to the Chairman of Audit Committee in appropriate cases. The Vigil Mechanism / Whistle Blower Policy has been placed on the Companys website www.pbmpolytex.com.
24. POLICY ON NOMINATION AND REMUNERATION
In compliance with the requirements of Section 178 of the Companies Act, 2013 and Regulation 19 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has laid down a Nomination and Remuneration policy which has been uploaded on the Companys website www.pbmpolytex.com. The salient features of the NRC Policy are as under:- a.) Setting out the objectives of the Policy b.) Definitions for the purposes of the Policy c.) Policy for appointment and removal of Director, KMP and Senior Management d.) Policy relating to the Remuneration for the Managerial Personnel, KMP, Senior Management Personnel & other employees.
25. RISK MANAGEMENT POLICY
The Company has a structured Risk Management Policy. The Risk Management Process is designed to safeguard the organization from various risks through adequate and timely actions. It is designed to anticipate, evaluate and mitigate risks in order to minimize its impact on the business. The potential risks are inventoried and integrated with the management process so that they receive the necessary consideration during decision making. It is dealt with in greater details in the management discussion and analysis section.
26. COMMITTEES OF THE BOARD
The Company has already formed the following committees to ensure timely compliances and better corporate governance of all the applicable rules and regulations:
1) Audit Committee, 2) Nomination & Remuneration Committee and 3) Stakeholders Relationship
Committee. The details about these committees are given in the Corporate Governance Report.
27. INSURANCE
All the properties of the Company including plant and machinery, stocks etc. have been adequately insured. The Company has also taken adequate insurance cover for loss of profit and Standing Charges.
28. AUDITORS A. Statutory Auditors
In compliance with the Companies (Audit and Auditors) Rules, 2014, the Members at the 103rd Annual General Meeting (AGM) of the Company, have appointed M/s. Mahendra N. Shah & Co., Chartered Accountants (FRN: 105775W), Ahmedabad as Statutory Auditors of the Company, for a consecutive years of five years from the conclusion of 103rd Annual General Meeting till the conclusion of the 108th Annual General Meeting.
B. Secretarial Auditors
Pursuant to the provisions of section 204 of the Act and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company has appointed M/s. J J Gandhi & Co. (FRN: S1996GJ018900) a firm of Practicing Company Secretaries, Vadodara, as Secretarial Auditors for a period of 5 consecutive years from the FY 2025-26 to FY 2029-30, subject to approval in the ensuing Annual General Meeting of the Company to undertake Secretarial Audit of the Company. The Secretarial Audit Report from previous Secretarial Auditor M/s Samdani Shah and Kabra for the financial year 2024-25 is annexed herewith as Annexure "C".
C. Cost Auditor
M/s. K. C. Moondra & Associates (FRN No. 101814), has been appointed as Cost Auditor for audit of cost records and statements for the financial year 2025-26 also. The proposed remuneration for the said financial year, as stated in the notice of the ensuing Annual General Meeting, is to be confirmed by the shareholders as required under section 148 of the Act. Further the company has made and maintained proper Cost Records as specified by the Central Government under Section 148 (1) of the Companies Act, 2013 for its business activities carried out during the year.
D. Internal Auditors
Shri. Yegasubramaniam Iyer, (Membership No-045781), Chartered Accountants, Vadodara and M/s. D. P. Sarda & Co., (FRN: 117227W), Chartered Accountants, Nagpur have been appointed as Internal Auditors for conducting internal audit of Petlad and Borgaon Units of the Company respectively, for the financial year 2025-26.
Explanation or Comments on disqualifications, reservations, adverse remarks or disclaimers in the
Auditors Reports;
No disqualifications, reservations, adverse remarks or disclaimers have been reported in the Auditors
Reports, requiring any explanation or comments by the Board of Directors of the Company.
29. REPORT ON CORPORATE GOVERNANCE AND MANAGEMENT DISCUSSIONS & ANALYSIS REPORT The Company has complied with all the applicable requirements of Corporate Governance as stipulated in Regulations 17 to 27 and clauses (b) to (i) of Sub-Regulation (2) of Regulation 46 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. A Separate Report on Corporate Governance and a Certificate obtained from M/s. Samdani Shah & Kabra, Practicing Company Secretaries, regarding compliance with the conditions of Corporate Governance and Management Discussions & Analysis Report are annexed herewith with as Annexure "D" which forms part of this Report.
30. MATERIAL CHANGES AND COMMITMENTS, IF ANY, AFFECTING THE FINANCIAL POSITION OF THE COMPANY
No material changes and commitments affecting the financial position of the Company have occurred during the financial year and upto the date of this Report.
31. DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR
TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANYS OPERATIONS IN FUTURE No significant and/or material orders were passed by any Regulator or Court or Tribunal impacting the going concern status and the Companys operations in future.
32. INTERNAL CONTROL SYSTEMS
The Company has adequate internal control systems, commensurate with the size and scale of the Company. However, looking to the need of the time it has been decided to widen the scope of internal audit and accordingly internal auditors have been appointed for Petlad, as well as, Borgaon units of the Company who submit their periodical reports to the Board and their advices are adopted and needful is done, if required for better control.
33. UNCLAIMED EQUITY SHARES AND DIVIDEND
Pursuant to the provisions of Section 124 of the Companies Act, 2013 ("the said Act"), the declared dividends which remained unpaid or unclaimed for a period of seven years have been duly transferred by the Company to the Investor Education and Protection Fund ("IEPF") established by the Central
Government under Section 125 of the said Act.
The Company has uploaded the details of unpaid and unclaimed amounts lying in separate bank accounts named "PBM POLYTEX LIMITED UNPAID DIVIDEND ACCOUNT" upto the financial year 2016-17 on the Companys website (www.pbmpolytex.com) and also on the Ministry of Corporate Affairs website: www.mca.gov.in.
The dividend for the years mentioned below, if remain unclaimed for consecutive seven years, will be transferred by the Company to IEPF:-
Financial Year | Date of Declaration of Dividend | Unclaimed Dividend as on 31.03.2025 (Rs.) |
2017-18 | 18.09.2018 | 5,36,169.00 |
2018-19 | 30.09.2019 | 93,060.00 |
2019-20 | No dividend declared | 0.00 |
2020-21 | 30.09.2021 | 1,98,372.00 |
2021-22 | 28.09.2022 | 4,47,383.00 |
2022-23 | No dividend declared | 0.00 |
2023-24 | No dividend declared | 0.00 |
TOTAL | 12,74,984.00 |
Pursuant to the provision of Section 124 (6) read with Rule 6 of Investor Education and Protection Fund
Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 (the "IEPF Rules") as amended, all the shares in respect of which dividend has/have remained unpaid or unclaimed for consecutive seven years, have to be transferred in the name of IEPF Authority.
Accordingly 16472 equity shares against 118 folios corresponding to the dividend for the financial year ended 31st March, 2017 which remained unclaimed for seven consecutive years have been transferred to the IEPF Authority after giving individual notices to the concerned shareholders and advertisement in Newspapers.
In aggregate 188011 equity shares are lying with IEPF Authority as on 31.03.2025
The Company has uploaded the details of all shares transferred to the IEPF Authority on the Companys website (www.pbmpolytex.com) and also on the Ministry of Corporate Affairs website: www.mca.gov.in.
The shareholders or their legal successors can claim back the dividend and all equity shares so transferred, from MCA after following the procedure laid down by MCA.
SECRETARIAL STANDARDS
All the applicable Secretarial Standards are being followed by the Company.
DEPOSITS
The Company has not accepted or continued any public deposits as contemplated under section 73 of the Act and the Companies (Acceptance of Deposits) Rules, 2014.
ACKNOWLEDGEMENTS
The bankers, and financiaL institutions have extended their full cooperation, support and valuable assistance to the Company. Your Directors place on record their appreciation for the same.
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