Eastern Silk Industries Limited Announces Financial Results and Approves Strategic Corporate Moves including Loan Guarantee

Eastern Silk Industries Limited Announces Financial Results and Approves Strategic Corporate Moves including Loan Guarantee​

Eastern Silk Industries Limited (ESIL) released its Annual Report for the financial year ended March 31, 2026, outlining its operational performance, significant governance updates, and major approvals regarding corporate strategy and related party transactions.

The textile manufacturer reported a consolidated total income of ₹ 2581.10 Lakhs against a revenue from operations of ₹ 2370.67 Lakhs for the financial year 2025-2026. The company recorded a net profit after tax (PAT) of (₹ 1360.24) Lakhs, resulting in a basic earnings per share of (₹ 27.20).

Key highlights from the standalone performance include:


The company reported a Reserves and Surplus of ₹ 3482.50 Lakhs as on March 31, 2026. The financial statements reflected the ongoing transformation process following the Resolution Plan approved by NCLT in January 31, 2024, which led to the extinction of existing equity shares and the issuance of new equity shares to the Successful Resolution Applicant (SRA), M/s Baumann Dekor Private Limited.

Major Corporate Governance and Strategic Approvals​

The Annual General Meeting focused on several critical corporate resolutions and approvals:

Related Party Transactions (MRPTs): The company approved multiple material related party transactions (MRPTs) involving various entities, all set to be executed on an arm's length basis and in the ordinary course of business. These include contracts with Warps and Wefts FZC, Design Coordinates FZC, Consilio Resources Private Limited, Baumann Dekor Private Limited, Baumann Dekor FZC, Shakuntla Sampling, and Trendz Building Materials Trading LLC.

Financing and Investment Limits: The Board accorded consent for several key financial measures:

• Credit Facility Guarantee: Approval was granted to provide a Corporate Guarantee up to an amount of ₹ 35 crores for the credit facilities being availed by M/s Baumann Dekor Private Limited.
• Foreign Direct Investment (FDI) Limit Increase: A resolution was passed proposing to increase the investment limit for Non-Resident Indians (NRI) and Overseas Citizens of India (OCI) in the equity shares from 10% to 24% of the paid-up equity share capital.
• Investment Enhancement: Consent was granted to the Board to give any loan, provide a guarantee or security up to ₹ 2,000 Crores under Section 186 of the Companies Act, 2013.

Loans and Shares Conversion: The company approved a special resolution to facilitate a non-interest bearing unsecured loan facility of up to ₹ 50 crores from Mr. Ajay Bikram Singh, Director and Promoter. This loan includes an option for conversion into Equity Shares at a price to be determined at the time of conversion.

Audit and Leadership Updates​

The company announced changes in its statutory auditing appointments:

• M/s B K Shroff & Co., Chartered Accountants, resigned as Statutory Auditors effective June 18, 2026.
• The Board recommended M/s Vyas & Vyas, Chartered Accountants (Firm registration No: 000590C) be appointed as the Statutory Auditors for a term of five years starting from the conclusion of the 80th Annual General Meeting.

Capital and Shareholding Movements​

The company's capital structure saw significant movements throughout the review period:

• Preferential Issue: During the year, ESIL issued 50,00,000 Equity Shares of ₹ 2/- each on April 03, 2025, pursuant to a resolution plan approved by the Honble NCLT.
• Offer for Sale (OFS): The company conducted two OFS events for the sale of equity shares. In total, 1,38,660 equity shares were sold through these offerings.

Operational and Financial Discipline​

The company maintains a dedicated risk management process and holds various certifications including ISO-9001:2015 (Quality Management System), ISO 45001:2018 (Occupational Health & Safety Management System), and ISO 14001:2015 (Environmental Management System).

The Board confirmed that it maintained adequate internal financial controls, and the CFO issued a certificate stating that the financial statements present a true and fair view of the Company's affairs. The company also affirmed compliance with its Code of Business Conduct and Ethics for the year ended March 31, 2026.

EASTSILK Stock Price Movement​

Shares of Eastern Silk Industries Limited are edging higher to ₹66.15 as of 1:06 PM today, leaping on a robust 5.00% gain. The stock is currently trading on a volume of 2,621 shares.