Akar Auto Industries Limited has officially submitted its postal ballot voting results to the Bombay Stock Exchange, confirming overwhelming shareholder approval for the appointment of Mrs. Shobha Prasad as Independent Director. The company announced the results on 01st April, 2026, following the completion of a month-long remote e-voting process that demonstrated exceptional shareholder confidence.

Regulatory Submission and Compliance

The company submitted the voting results under Regulation 44(3) of SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015. Company Secretary Dipak Kala confirmed the submission to BSE through official communication (Ref: AAIL/CS/09/2026), ensuring full regulatory compliance.

Voting Results and Shareholder Response

The special resolution for appointing Mrs. Shobha Prasad (DIN: 11012990) as Independent Director received exceptional support across all shareholder categories. The voting demonstrated remarkable consensus with 99.99% approval rate.

Scrutinizer's Validation

Mr. Nitin S. Sharma (ICSI Membership No. F8518) from Nitin S. Sharma & Associates served as the appointed Scrutinizer, ensuring transparent and compliant conduct of the postal ballot process. The scrutinizer's report confirmed:

• Valid Participation: 36 members voted in favor representing 3,745,073 votes
• Opposition Votes: 8 members voted against with 72 votes
• Process Integrity: Zero invalid votes recorded with full regulatory compliance
• Witness Verification: Vote unblocking conducted in presence of independent witnesses Mr. Rohidas Gawali and Mr. Subhash Shinde

E-Voting Platform and Communication

Bigshare Services Private Limited provided the e-voting platform, with the process conducted entirely through electronic means in accordance with MCA circulars. The company ensured comprehensive stakeholder communication through multiple channels including the company website at akarauto.com, e-voting platform at bigshareonline.com, and BSE website.

Newspaper advertisements were published in Business Standard (English) and Mumbai Lakshdeep (Marathi) on 02nd March, 2026, ensuring broad stakeholder awareness of the postal ballot process.

Corporate Governance Enhancement

The successful appointment of Mrs. Shobha Prasad as Independent Director represents a significant strengthening of the company's board composition and governance framework. The resolution, classified as a special resolution requiring enhanced majority approval, achieved remarkable shareholder consensus, reflecting strong confidence in the company's strategic direction and governance practices.

Akar Auto Industries Limited (AAIL), a prominent player in the automotive components sector, has received a significant boost to its credit profile. Infomerics Valuation and Rating Private Limited has upgraded the company's credit ratings, reflecting an improvement in its financial and operational performance.

Credit Rating Upgrade Details

The credit rating agency has revised AAIL's ratings as follows:

This upgrade applies to a total rated amount of Rs. 100.34 crore, encompassing both long-term and short-term facilities.

Factors Driving the Upgrade

The rating upgrade is attributed to several key factors:

1. Revenue Diversification: AAIL has successfully diversified its revenue streams, strengthening its business profile.
2. Backward Integration: The company's move towards backward integration through solar power generation is expected to yield significant benefits.
3. Operational Improvements: AAIL has demonstrated a strong operational outlook, supported by robust recovery in commercial vehicle sales.
4. GST Rate Reduction: The recent reduction in GST rates from 28% to 18% for commercial vehicles is anticipated to boost demand for AAIL's products.

Financial Performance

AAIL reported:

• Total Operating Income: Rs. 377.17 crore (2% year-on-year growth)
• EBITDA: Rs. 26.63 crore (10% increase from previous year)
• PAT: Rs. 6.46 crore (up from Rs. 5.49 crore)
• EBITDA Margin: Improved to 7.06% from 6.39%

Strategic Initiatives

AAIL has undertaken several strategic initiatives to enhance its operational efficiency and cost-effectiveness:

1. Solar Power Project: The company has installed 2 MW rooftop solar panels and is setting up a 5 MW solar power plant, expected to meet 75% of its power requirements and generate monthly savings of approximately Rs. 0.50 crore.
2. Locational Advantage: AAIL's manufacturing base in Aurangabad provides strategic benefits, including lower logistics costs and better access to OEMs and distributors.
3. Steel Sourcing: The company sources steel from its group entity, RL Steels and Energy Ltd., leading to significant transportation cost savings.

Outlook

Infomerics has assigned a 'Stable' outlook to AAIL, reflecting the potential for revenue growth given the uptick in the Indian auto industry. The ongoing capacity expansion and solar power projects are expected to support cost efficiency and profitability over the medium term.

While the upgrade is a positive development, it's important to note that AAIL still faces challenges, including a leveraged capital structure and exposure to cyclicality in the auto industry. However, the company's established relationships with reputed clients and its strategic initiatives are expected to mitigate these risks to some extent.

As Akar Auto Industries continues to navigate the dynamic automotive component industry, this credit rating upgrade may potentially enhance its ability to access capital and improve its standing with stakeholders. The company's focus on sustainability through solar power initiatives also aligns well with the growing emphasis on green technologies in the automotive sector.