Postal Ballot Notice Dated May 27,2025
BIRLAPREC · price
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Awaiting price reaction for this filing.
Birla Precision Technologies has issued a postal ballot notice seeking shareholder approval to formally appoint Mr. Ravinder Chander Prem (DIN: 07771465) as Managing Director for a 5-year term from April 7, 2025 to April 6, 2030, along with his remuneration for an initial 3-year period. Mr. Prem was initially appointed as Additional Director (MD designation) by the Board on April 7, 2025, and brings 36 years of experience in precision engineering, including prior roles as Whole-Time Director and COO at Forbes & Company Limited. His proposed compensation includes a base salary of Rs. 7.17 lakh per month, a special allowance of Rs. 1.77 lakh per month, and a performance-linked variable pay of up to Rs. 75 lakh per year, plus standard perquisites. The resolution is being moved as a Special Resolution because the Company has acknowledged that its profits are inadequate to pay such managerial remuneration, triggering Schedule V requirements. E-voting opens on May 29, 2025 and closes on June 27, 2025, with results due by July 1, 2025. Disclosed financials show PAT declining from Rs. 10.66 Cr in FY24 to Rs. 5.42 Cr in FY25, with turnover falling from Rs. 225.77 Cr to Rs. 207.18 Cr.
This is a governance-related item requiring shareholder approval and is unlikely to be price-sensitive on its own. However, the falling profits context and the fact that the Company is paying executive remuneration despite inadequate profits is worth noting. Shareholders should cast their votes via e-voting between May 29 and June 27, 2025; Vedant Birla continues as Chairman and the new MD has no prior shareholding in the Company.