K K Silk Mills Ltd

Governance compliance exemption

• Listed on BSE SME Platform; Regulation 27(2) CG reporting not applicable.
• CG Report not required for quarter ended 30 September 2026.

K K Silk Mills Ltd trading window closed from 26 September 2026 up to 48 hours after the declaration of the financial results for the half year ended 30 September 2026

Financial snapshot

• Revenue from operations: 24,478.81 lakh; up from 22,077.99 lakh.
• Total income: 24,546.76 lakh.
• Net profit after tax: 479.04 lakh; up from 468.29.
• Depreciation: 218.49 lakh; up from 210.03.
• EPS: ₹2.76; FY2024-25 EPS was ₹3.13.
• IPO: 75 lakh shares at ₹38; ₹28.50 crore raised.
• Listed on BSE SME on 3 December 2025.
• Authorized capital up to ₹23 crore; paid-up capital ₹22.44 crore.
• No dividend declared for the year.

IPO & capital structure

• IPO proceeds used per prospectus; listed on BSE SME on 3 December 2025.
• Bonus shares issued in 2025; restated EPS.
• Paid-up capital after IPO: ₹22.44 crore.
• Weighted average shares adjusted for IPO; EPS restated.

Governance & leadership

• Five-member board including MD, WTD, two independent directors.
• Board met 24 times in FY2025-26.
• Audit Committee has 3 members; 13 meetings held.
• Secretarial Auditor: Nidhi Bajaj & Associates; remuneration ₹75,000 per annum.

Related party transactions

• Material related-party transactions approved up to ₹15 crore for 2026-27.
• Purchases from JK Fabtex: ₹220.21 lakh; sales ₹115.39 lakh.
• Job work charges from JK Fabtex: ₹609.29 lakh.
• Loans/advances to JK Fabtex: ₹583.94 lakh; repayments ₹1,194.76 lakh.

Audit & controls

• Statutory auditors: Borkar & Muzumdar; internal auditor: NG Jain & Co.
• Secretarial auditor MR-3: Nidhi Bajaj & Associates; remuneration ₹75k.
• Cost auditor: Satish Gupta; remuneration ₹50k.
• Independent auditor's report: unmodified; revenue recognition and receivables flagged.

CSR & sustainability

• CSR expenditure: ₹7.31 lakh; education and healthcare focus.
• CSR policy and projects disclosed on company website.
• CSR obligation: 2% of average net profit; 7.31 lakh spent.
• Unspent CSR: Nil.

Outlook & risks

• Textiles industry outlook positive; opportunities from PM MITRA, PLI schemes.
• Risks include raw material volatility and FX exposure.
• Company focuses on product innovation, efficiency, and market expansion.

AGM details

• AGM held on 27 August 2026 at 1:15 PM via Video Conferencing.

Resolutions and outcomes

• Resolution 1: Adoption of Audited Standalone Financial Statements for year ended Mar 31, 2026 — Passed.
• Resolution 2: Re-appointment of Asha Shah as Director by rotation — Passed.
• Resolution 3: Re-appointment of Manish Shah as Managing Director — Passed.
• Resolution 4: Re-appointment of Nilesh Jain as Whole Time Director — Passed.
• Resolution 5: Appointment of Secretarial Auditor for FY 2026-27 to 2030-31 — Passed.
• Resolution 6: Appointment of Cost Auditor — Passed.
• Resolution 7: Approval of material related party transactions — Passed.

Director changes

• Asha Shah re-appointed by rotation as director.
• Manish Shah re-appointed as Managing Director.
• Nilesh Jain re-appointed as Whole Time Director.

Auditors and secretarial

• Secretarial Auditor appointed for FY 2026-27 to 2030-31.
• Cost Auditor appointed.

Related party transactions

• Approval of material related party transactions.

AGM details

• AGM held on 27 August 2026 at 01:15 PM via VC/OVAM
• Meeting concluded at 01:28 PM
• Quorum confirmed; proceedings conducted through VC/OVAM

Resolutions considered

• Adoption of audited standalone financial statements for year ended 31 March 2026
• Re-appointment of Mrs. Asha Shah, retiring by rotation
• Re-appoint Manish Shah as Managing Director (Special Business)
• Re-appoint Nilesh Jain as Whole-Time Director
• Appointment of Secretarial Auditor for 2026-27 to 2030-31
• Appointment and remuneration of Cost Auditor
• Approval of material related party transaction
• Voting outcomes pending; scrutinizer report to be declared within two working days

Re-appointment: Asha Shah (Non-Executive Director)

• Re-appointed as Non-Executive Director; retires by rotation at AGM 27 Aug 2026; wife of Manish Shah.

Re-appointment: Manish Shah (Managing Director)

• Re-appointed as Managing Director at AGM 27 Aug 2026; brother of Nilesh Jain and husband of Asha Shah.

Re-appointment: Nilesh Jain (Whole Time Director)

• Re-appointed as Whole Time Director at AGM 27 Aug 2026; brother of Manish Shah.

Appointment: Nidhi Bajaj & Associates (Secretarial Auditor)

• Secretarial Auditor appointed for FY2026-27 to 2030-31; appointment approved 29 May 2026; led by Nidhi Bajaj.

Financial highlights

• Revenue from operations rose to ₹24,478.81 lakh, up from ₹22,077.99 lakh.
• Total income ₹24,546.76 lakh, up from ₹22,142.74 lakh.
• Net profit after tax ₹487.50 lakh; up from ₹468.29 lakh.
• Profit before tax ₹669.87 lakh; tax ₹182.36 lakh.
• EPS (basic/diluted) ₹2.76.
• IPO proceeds ₹28.50 crore; listing on BSE SME on Dec 3, 2025.
• Paid-up share capital year-end ₹22.44 crore; authorised capital ₹23 crore.
• Reserves and surplus ₹47.81 crore at year-end.
• Dividend: no dividend declared for the year.

Business performance and operations

• Manufacturing facility located at Umbergaon, Gujarat with modern weaving and processing.
• Inventories at year-end ₹7,006.22 lakh; trade receivables ₹6,916.88 lakh.
• Cash and cash equivalents ₹48.28 lakh; fixed deposits ₹195.29 lakh.
• Capital work in progress ₹309.46 lakh; CWIP added for capacity enhancement.
• Current ratio 1.53; DSCR 2.05; debt-equity 0.80.

Capital structure and corporate actions

• IPO of 75 lakh shares at ₹38 each raised ₹28.50 crore.
• IPO proceeds deployed per prospectus objects; listing on SME platform December 2025.
• Bonus issue: 1:1 on March 11, 2025.
• Authorised share capital increased to ₹23 crore.
• Promoter holdings total 58.22% as at 31 March 2026.

Governance and leadership

• MD: Manish Kantilal Shah; WTD: Nilesh Kantilal Jain; Director: Asha Shah.
• Independent Directors: Priyanka Mayuresh Oka, Naina Israni; CFO: Naman Shah; CS: Saachi Madnani.
• Board meetings: 24 in FY2025-26.
• Independent Directors held a separate meeting on 20 Feb 2026; all were present.
• Audit Committee met 13 times; chairman: Priyanka Mayuresh Oka.

Related party transactions

• Material related party transactions with JK Fabtex Industries (group company) and others on arm's length basis.
• Aggregate approved RPT ceiling for 2026-27 up to ₹15 crore.
• Key items: purchases ₹220.21 lakh; sales ₹115.39 lakh; job work charges ₹609.29 lakh.
• Loans/advances from JK Fabtex ₹583.94 lakh; interest ₹32.53 lakh.
• Directors remuneration: Manish Shah ₹6.00 lakh; Nilesh Jain ₹6.00 lakh; others minor amounts.

CSR and corporate responsibility

• CSR expenditure ₹7.31 lakh; main projects include Shree Gorksha Education and hospital supports.
• CSR policy and CSR Committee disclosed on company website.
• Average net profit used for CSR computation: ₹365.71 lakh; 2% statutory obligation ₹7.31 lakh.

Audit and internal controls

• Statutory auditors: Borkar & Muzumdar; Internal auditors: M/s N G Jain & Co.
• Secretarial auditor: M/s Nidhi Bajaj & Associates; MR-3 unqualified report.
• CFO certificate confirms accuracy of financial statements and control effectiveness.
• Independent audit report: unmodified; no fraud reported; no material weaknesses noted.

Outlook and risks

• Positive outlook for Indian textiles supported by PM MITRA, PLI, and export opportunities.
• Risks include raw material volatility, exchange rate movements, energy costs, and competition.
• Company focus on product innovation, efficiency, and geographic expansion to mitigate risks.

Flood disruption at Umbergaon plant

• Temporary disruption of operations at the Umbergaon plant due to flooding on July 24, 2026.
• Access to areas of the plant is restricted by waterlogging; extent of production loss and damage being assessed.
• No casualties reported; site is insured; actual damage amount to be ascertained after survey.
• Production at the Umbergaon plant suspended until assessment and restoration are completed; other plants operating normally.
• Insurance coverage confirmed; loss amount to be determined post-survey.
• Disruption location: Survey No. 141/P, Plot 406, Umbergaon Industrial Estate, Umbergaon, Valsad; flood due to heavy rains.

Non-applicability of Reg 27(2) due to SME listing

• Company states Regulation 27(2) non-applicable as listed on BSE SME Platform.
• No Corporate Governance Report for quarter ended 30 June 2026 is required.