Axita Cotton Ltd

Key update

• Date of EOI: 21 August 2026, pursuing CIRP under IBC.
• Varidhi spinning facility in Dholka, Gujarat with 29,184 spindles and ~4,442 MTPA capacity.
• Axita aims to complement existing operations and expand across the cotton value chain.
• Strategic opportunity to explore synergies in cotton and yarn manufacturing.

Cost Auditor Re-appointment

• Type: Re-appointment of Cost Auditor.
• Auditor: M/s. Reena Patadiya & Co., Cost Accountants (FRN 004346).
• Effective date and term: Effective Aug 12, 2026 for FY 2026-27.
• Reason: Board and Audit Committee recommended re-appointment based on capability and governance standards.
• Profile: Proprietor Ms. Reena Kantilal Patadiya; firm since 2012; provides cost audit and related services.
• Relationship with directors: Not Applicable.
• Approval process: Board and Audit Committee approved the re-appointment.
• Governance impact: No change to board/committee composition reported.

Internal Auditor Appointment

• Appointment of M/s. R J and Associates as Internal Auditor for FY 2026-27.
• Effective August 12, 2026 for the 2026-27 internal audit.
• Board and Audit Committee found firm suitable due to diverse audit experience.
• Firm is R J and Associates, a Gujarat-based cost accounting firm (Reg. No. 004690).
• Offices in Ahmedabad and Halvad; partners Rahul A. Modh and Jignesh S. Tarbundiya.
• Associated with Axita since 2023 as internal auditors.
• Led by Rahul A. Modh and Jignesh S. Tarbundiya, FCMA.
• Relationship with directors: Not applicable.

Key Update

• Auditors M/s P K N & Co. resigned as Axita Cotton Limited's statutory auditors on Aug 12, 2026.
• Reason: internal admin/operational restructuring; no disagreement with management.
• Audit Committee and Board noted no reasons beyond the resignation letter.
• Resignation letter and required disclosures attached and hosted on Axita Cotton's website.
• Company to appoint a new statutory auditor per Companies Act 2013 and SEBI LODR.
• Audit Report dated April 20, 2026 for the year ended March 31, 2026.
• Limited Review Report dated August 12, 2026 for quarter ended June 30, 2026.
• Resignation effective before end of term; term to conclude at the 17th AGM.
• Company to facilitate orderly transition to new auditor.

Financial performance

• Standalone unaudited Q1 FY27 results for quarter ended 30 Jun 2026.
• Revenue from operations: Rs 5,828.06 lakh; YoY down 4.6%.
• Total income: Rs 6,196.77 lakh; marginally lower than prior-year Rs 6,218.89 lakh.
• Profit before tax: Rs 473.61 lakh; prior-year PBT: Rs (356.30) lakh.
• Net profit after tax: Rs 359.04 lakh.
• EPS (basic/diluted): Rs 0.09.
• Total comprehensive income: Rs 479.06 lakh.
• ESOP allotment: 178,200 fully paid-up equity shares issued.
• Paid-up capital increased due to ESOP, per board approval.
• Single reportable segment; results reviewed by Audit Committee.

Financial results

• Unaudited standalone Q1 FY2026-27 results for quarter ended June 30, 2026, with Limited Review.

Auditor changes

• Resignation of M/s P K N & Co. as statutory auditors effective August 12, 2026.
• Appointment of M/s DTA & Associates as statutory auditors until the ensuing General Meeting.

Independent director

• Re-appoint Vinod Rana as Independent Director for second 5-year term (2027-2032), subject to shareholders' approval.

Internal and cost auditors

• Appoint M/s R J and Associates as Internal Auditor for FY 2026-27.
• Appoint M/s Reena Patadiya & Co as Cost Auditor for FY 2026-27.

AGM and corporate actions

• Notice for the 13th AGM for FY ended March 31, 2026 to be issued.

ESOP and equity issuances

• NRC approved allotment of 178,200 fully paid shares under ESOP-2023.
• NRC granted 214,930 ESOP options under ESOP-2023.

Key financial and governance actions

• Unaudited standalone quarterly results for quarter ended 30 Jun 2026 approved with Limited Review.
• Resignation of M/s P K N & Co as Statutory Auditor effective 12 Aug 2026.
• Appointed M/s DTA & Associates as Statutory Auditor till the ensuing AGM.
• Re-appointed Vinod Rana as Independent Director for second 5-year term, 2027–2032, subject to shareholders.
• Appointed M/s R J and Associates as Internal Auditor for FY 2026-27.
• Appointed M/s Reena Patadiya & Co as Cost Auditor for FY 2026-27.
• ESOP allotment of 1,78,200 shares; paid-up capital increased.
• Notice for 13th AGM for FY ended 31 March 2026 to be sent in due course.