Eurotex Industries and Exports Limited has informed regarding Non Applicability of the Compliance Report on Corporate Governance for the Quarter ended June 2025
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Eurotex Industries and Exports has informed stock exchanges that the quarterly Corporate Governance compliance report under SEBI LODR Regulation 27 is not applicable to the company for the quarter ended 30 June 2025. The exemption applies because the company's paid-up share capital is below Rs. 10 crore and its net worth is below Rs. 25 crore, which is the SEBI threshold for small companies. The company has attached a Net Worth Certificate dated 6 June 2025 from its auditors, Shankarlal Jain & Associates LLP, confirming these figures. As per the certificate, the paid-up capital stands at Rs. 874.02 lakhs (about Rs. 8.74 crore), while the net worth is deeply negative at Rs. (2,946.73) lakhs as of 31 March 2025, compared to Rs. (2,716.45) lakhs in FY24 and Rs. (2,026.77) lakhs in FY23. The negative net worth is driven by accumulated reserves and surplus of Rs. (3,820.75) lakhs, indicating sustained losses over the years.
While the filing itself is a routine regulatory exemption and not directly price-moving, the underlying financial detail is concerning for shareholders — the company has reported negative net worth for three consecutive years, with losses widening each year. Investors should note the weak balance sheet even though it qualifies the company for reduced compliance requirements.