Sylvan Plyboard Increases Authorised Capital and Revises MD’s Remuneration in Key Board Meeting Decisions

Sylvan Plyboard (India) Limited, a leading ISO-certified plywood manufacturing company, made multiple strategic decisions during its Board of Directors meeting held on June 23, 2025, as part of its long-term growth and governance enhancement plan.

Major Highlights of the Board Meeting

The meeting saw key resolutions being passed related to capital restructuring, corporate governance, statutory compliance, and executive compensation. These decisions signal the company’s preparedness to scale operations, reinforce its financial standing, and maintain regulatory transparency.

Let’s delve into the major outcomes from the Board’s decisions:

Increase in Authorised Share Capital

One of the most critical resolutions passed was the increase in authorised share capital of the company.

The Board approved a hike in the authorised share capital from ₹20 crore to ₹30 crore. The revised capital structure will now comprise 3 crore equity shares of ₹10 each, up from the earlier 2 crore equity shares.

This move paves the way for potential future capital raises such as rights issues, private placements, or bonus issues.

The capital increase is subject to shareholder approval through a postal ballot process conducted electronically, in accordance with SEBI (LODR) Regulations, 2015.

Amendment to Capital Clause in MoA:
Consequent to the increase in authorised capital, Clause V of the Memorandum of Association (MoA) of the company will also be amended to reflect the updated figures.

Approval of Postal Ballot Notice

The Board approved the draft Postal Ballot Notice which will be used to seek member approval for increasing the authorised capital and the associated amendment to the MoA.

Important Dates for Postal Ballot Process:

• Cut-off Date for Shareholder Eligibility: Friday, 27th June 2025

• Voting Start Date: Wednesday, 2nd July 2025, 9:00 AM IST

• Voting End Date: Thursday, 31st July 2025, 5:00 PM IST

This process will be carried out via remote e-voting only, ensuring compliance with digital governance norms.

Appointment of Scrutinizer

To ensure fairness and transparency in the postal ballot process, the Board has appointed M/s. Shubham Sinha & Associates, a firm of Practising Company Secretaries, as the Scrutinizer.

The scrutiny will be done as per SEBI and MCA guidelines to validate the voting process and results.

Noting of Tax Demand Notices

The Board also discussed and noted the receipt of tax demand notices issued under the erstwhile West Bengal Tax on Entry of Goods into Local Areas Act, 2012.

The company received these notices in Form 27 via email on:

• June 18, 2025 – for FY 2015–16, 2016–17, and Q1 of 2017–18

• June 20, 2025 – for FY 2014–15

The notices were issued by the Deputy Commissioner, Commercial Taxes, Government of West Bengal, Large Taxpayer Unit.

Sylvan Plyboard is currently assessing the legal implications of these demands and intends to take appropriate action based on legal advice.

This disclosure reflects the company’s commitment to transparent corporate governance and statutory compliance.

Revision in Remuneration of Managing Director

The Board approved a revision in the remuneration of Mr. Anand Kumar Singh, Managing Director of Sylvan Plyboard.

Revised Salary Details:

• New Salary: ₹3,00,000 per month

• Effective Date: August 1, 2025

• Other Terms: Unchanged as per the Agreement dated August 25, 2022

Mr. Singh was reappointed on July 25, 2022, for a term of five years starting May 5, 2023. His reappointment and authority to revise his salary were approved by the shareholders during the AGM held on August 8, 2022.

This increase in remuneration reflects the Board’s confidence in Mr. Singh’s leadership during a time of strategic transformation and operational growth.

Strategic Implications of These Decisions

The decisions taken by Sylvan Plyboard’s board are not routine—they are structural and strategic in nature.

Capital Readiness for Future Growth

Increasing the authorised capital gives Sylvan Plyboard financial flexibility to raise funds in the future. Whether for expanding manufacturing capacity, exploring new geographies, or modernising technology infrastructure, this move ensures the company is well-capitalised for the next phase of growth.

Transparent Governance through Postal Ballot

The use of electronic postal ballots is a strong reflection of the company's embrace of digital governance. It enhances shareholder participation and ensures decisions are taken with full transparency.

Addressing Regulatory Notices

By openly acknowledging and reviewing demand notices from the tax department, the company ensures that shareholder trust remains intact. Timely legal action, once determined, will be crucial in mitigating any potential financial impact.

Leadership Confidence

The salary revision of the MD is both a motivational reward and a signal of stability at the top. As companies scale, continuity in leadership becomes essential—and the Board seems to value this strongly.

Closing Remarks

The Board meeting of June 23, 2025, marks a pivotal moment for Sylvan Plyboard (India) Limited. With actions spanning capital enhancement, legal compliance, and executive leadership, the company is demonstrating that it is poised for growth, ready to manage governance challenges, and aligned with modern corporate practices.

The outcome of the postal ballot process and the resolution of tax-related matters will be key to watch in the coming weeks. Stakeholders are advised to stay informed via the company’s website www.sylvanply.com and official filings on NSE.

The Upcoming IPOs in this week and coming weeks are Supertech EV, Valencia India, Neetu Yoshi, Abram Food, PRO FX Tech, Suntech Infra Solutions, Shri Hare-Krishna Sponge Iron, Icon Facilitators, Ace Alpha Tech, Globe Civil Projects, Sambhav Steel Tubes, Ellenbarrie Indutrial Gases, Kalpataru, HDB Financials, AJC Jewel.

The Current active IPO are  Aakaar Medical Technologies, Safe Enterprises Retail Fixtures, Mayasheel Ventures.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.