Dreamfolks Services Limited shareholders have approved a material related party transaction with ETT Solutions DMCC through a remote e-voting process. The resolution secured the requisite majority, with 87.61% of votes cast in favour, authorizing the company to proceed with the transaction. This approval governs future business dealings between the company and the specified related party.

The postal ballot notice was dispatched to shareholders on June 03, 2026, seeking approval for the ordinary resolution. The remote e-voting period commenced on June 04, 2026, at 09:00 A.M. IST and concluded on July 03, 2026, at 05:00 P.M. IST. Mr. Deepak Kukreja, Partner at DMK Associates, Company Secretaries, served as the scrutinizer for the process and submitted his report on July 03, 2026.

Voting Results Breakdown

A total of 1,42,458 votes were polled, representing 0.26% of the total outstanding shares. Public non-institutions accounted for the majority of the participation, with 1,39,156 votes polled. Promoters and the promoter group did not participate in the voting process.

Scrutinizer's Declaration

The scrutinizer confirmed that the ordinary resolution was passed as the number of votes cast in favour exceeded the votes cast against the resolution. The report noted that 262 members voted in favour, while 39 members voted against the proposal. No invalid votes were recorded during the process. The results have been published on the company's website and the National Securities Depository Limited's e-voting portal.

Dreamfolks Services Limited approved a proposal to provide a corporate guarantee and security to secure a credit facility for Ten 11 Hospitality Private Limited. The Board of Directors granted approval at its meeting held on July 02, 2026, to support a dropline overdraft facility of INR 2.50 crore from AU Small Finance Bank Ltd.

The security arrangement comprises a Letter of Guarantee and a Fixed Deposit of INR 1 crore pledged as collateral. This support is extended for an initial period of one year and includes an auto-renewal provision that remains valid until the tenure of the loan concludes. The guarantee covers the principal amount along with all interest, fees, commissions, charges, costs, expenses, and legal costs payable in connection with the facility.

Transaction Details

The disclosure was made to the exchanges in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company confirmed that promoters, promoter groups, or group companies do not hold any interest in this transaction.

Financial Impact and Terms

Dreamfolks Services stated that the proposed arrangement constitutes a contingent liability and does not result in any immediate cash outflow. Based on the current financial position and expected cash flows, the company does not foresee the invocation of the Corporate Guarantee. Apart from the temporary restriction on the utilisation of the fixed deposit placed as collateral, the company does not anticipate any material impact on its financial position or liquidity.

As part of the agreement, Dreamfolks Services will charge a guarantee commission to Ten 11 Hospitality, which will be benchmarked at the end of the financial year. The company retains the right to recover from the borrower all amounts paid or liabilities incurred pursuant to the guarantee, as per the agreement to be executed between the parties.