Akshar Spintex Limited — Important, 19-01-2026: Disclosure of material issue

Akshar Spintex has initiated a Postal Ballot for shareholder votes on key management changes.

Here's the breakdown:

1. **Independent Director:** Shareholders are asked to ratify the appointment of Mr. Bhavin Kothiya as an Independent Director. He brings over 4 years of experience as a Quality Inspector in the pharmaceutical sector, which the Board believes will strengthen company governance.

2. **Executive Director Appointment (Re-attempt):** The company is again seeking approval for Mr. Harry Paghdar as Executive Director for a 5-year term. Notably, shareholders *previously voted against* his appointment as Managing Director in August 2025.

3. **Executive Director Remuneration (Re-attempt):** Approval is also sought for Mr. Harry Paghdar's annual remuneration of ₹12 Lakh. This is particularly sensitive as the company faced losses in FY2024-25, and his pay was implicitly rejected before.

**The Issue:** Persistent shareholder concern over Mr. Harry Paghdar's leadership role and compensation, especially considering the company's recent financial performance (losses in FY2024-25).

**Possible Impact:** If shareholders again reject these proposals, it could signal ongoing governance challenges or dissatisfaction with management's decisions, potentially affecting investor confidence. The company's ability to navigate a volatile cotton market might be impacted if a key executive is not confirmed.

**Company’s Response:** The Board emphasizes Mr. Paghdar's over 5 years of hands-on experience in the cotton industry and his crucial role in managing international trade relationships, procurement, and mitigating global market fluctuations. The Board believes his appointment as Executive Director is vital for operational needs and strategic growth, justifying the proposed pay as minimum remuneration given challenging external market conditions (global economic volatility, rising costs). The company anticipates improved financial performance with market stabilization and continued strategic oversight.