V B Rathi Reappointed as Lakhotia Polyesters Internal Auditor for 2026-27

Lakhotia Polyesters (India) Ltd has reappointed Mr. V B Rathi as its Internal Auditor for the fiscal year 2026-27. The Board of Directors approved the reappointment on April 28, 2026, following a recommendation from the Audit Committee. Mr. Rathi brings a decade of experience in the textile industry and expertise in internal controls, continuing his role from FY 2024-25. The 50-minute board meeting highlighted the importance of strong internal audit functions.

Why the Internal Auditor Role is Crucial

An internal auditor is key to a company's governance structure, providing an independent review of internal controls, risk management, and governance processes. For Lakhotia Polyesters, this appointment ensures a dedicated professional will examine financial reporting, operational efficiency, and regulatory compliance. This oversight is vital for spotting potential risks and inefficiencies, helping to protect shareholder interests and encourage strong corporate practices, especially given the company's business and recent financial performance.

Company Background and Financial Challenges

Established in 1980, Lakhotia Polyesters (India) Ltd manufactures and sells metallic yarn and textile fabrics, with main operations in Nashik, Maharashtra. The company's business is sensitive to polyester price volatility, linked to crude oil prices, which creates input cost challenges. Recent market reports indicate significant financial challenges. In late 2025 and early 2026, the company saw a notable drop in net sales, with reports of a revenue collapse and generally negative financial trends. Despite these issues, the company has historically shown profits and growth over five years, though it has not paid dividends.

Continuity in Audit Function

This reappointment ensures continuity in Lakhotia Polyesters' internal audit function. Mr. Rathi's textile sector experience is expected to provide him with a deep understanding of the company's operations and industry-specific challenges. His oversight aims to strengthen internal controls and ensure adherence to policies, crucial for maintaining transparency and accountability during financially challenging periods.

Market View and Key Risks

MarketsMojo rated Lakhotia Polyesters as a 'Strong Sell' around March-April 2026, citing a steep revenue collapse and deteriorating financial trends. This rating highlights the significant financial pressures the company may be facing. The effectiveness of the internal audit in identifying and mitigating these financial and operational risks will be a key factor to monitor. Any findings from the auditor's review could impact investor confidence and the company's strategic direction.

Industry Peers Focus on Audits

Other textile sector companies also emphasize strong corporate governance. For example, Shahlon Silk Industries Limited appointed M/s. P Meet & Co. as its Internal Auditors effective February 14, 2026, reflecting a broader industry focus on maintaining robust audit functions.

What Investors Will Be Watching

Investors will closely follow internal audit reports for significant findings on financial controls and risk management. The company's ability to navigate its reported financial difficulties and maintain smooth operations will be critical. Further company disclosures on financial performance and actions based on audit recommendations will also be important.