Gala global products Limited conducted an Extra-Ordinary General Meeting on April 4, 2026, to address a significant corporate restructuring initiative involving the increase of authorized share capital and amendments to the company's Memorandum of Association.

Meeting Overview and Logistics

The EGM was held through video conferencing, reflecting the company's adherence to regulatory guidelines and modern meeting practices. The session was efficiently managed within a focused timeframe, demonstrating the company's commitment to effective corporate governance.

Key Agenda and Corporate Actions

The primary focus of the meeting centered on a crucial corporate restructuring decision. The shareholders deliberated on increasing the company's authorized share capital, which necessitated corresponding amendments to the Capital Clause in the Memorandum of Association. This strategic move indicates the company's preparation for potential business expansion or capital requirements.

E-Voting Process and Governance

The company implemented a comprehensive electronic voting system to ensure maximum shareholder participation and transparency. Ms. Vandana Arun Baldi, Company Secretary, welcomed shareholders and outlined the voting procedures, while Mr. Sachin Thakkar from M/s Sachin Thakkar and Associates served as the appointed Scrutinizer.

Board Participation and Leadership

The meeting witnessed active participation from the board, with Mr. Vishal Mulchandbhai Gala chairing the proceedings. However, three directors were notably absent: Vipul Laxmichand Maru (Independent Director), Prahlad Kumar Agarwal (Managing Director), and Dhruv Modi (Independent Director). Despite these absences, the meeting maintained the requisite quorum for conducting business.

Regulatory Compliance and Communication

The company demonstrated strong regulatory compliance by adhering to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The proceedings were conducted in accordance with Ministry of Corporate Affairs and SEBI circulars, ensuring transparency and proper documentation. The company committed to uploading consolidated voting results on stock exchanges, NSDL, and its official website following the meeting's conclusion.

GALA Global Products Limited has received a formal demand notice under the SARFAESI Act from HDFC Bank Limited, marking a significant development in the company's debt resolution process. The notice, issued under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, demands immediate attention to outstanding credit facilities.

Outstanding Debt Details

The demand notice specifies total outstanding dues of Rs. 6,99,13,608.13 as on March 15, 2026. The debt comprises two main components:

The original sanctioned limits included a Cash Credit facility of Rs. 6,22,10,000.00 and a BBG-WC Term Loan facility of Rs. 83,50,000.00, with total sanctioned limits of Rs. 7,05,60,000.00.

Timeline and NPA Classification

The company's account was declared as Non Performing Asset on December 23, 2025, with outstanding dues of Rs. 6,69,92,798.08 at that time. The demand notice was dated March 16, 2026, and the company received communication about it on March 20, 2026, at the residential address of one of the directors.

Secured Assets at Risk

HDFC Bank holds security interest in multiple industrial properties located in Ahmedabad:

All properties are located in Shree Laxmi Cooperative Industrial Estate Ltd., Rakhial, Ahmedabad, and are registered as mortgaged securities with the bank.

Company's Proactive Efforts

Prior to receiving the SARFAESI notice, GALA Global Products had approached HDFC Bank on February 26, 2026, with a comprehensive repayment plan. The company had requested a 30-day extension until March 31, 2026, to finalize arrangements with a prospective buyer for the collateral properties. The company expressed commitment to full closure of the entire Rs. 6.22 crore limit along with applicable interest.

Statutory Compliance and Next Steps

Under the SARFAESI Act provisions, the company has 60 days from the notice date to discharge the full liability of Rs. 6,99,13,608.13 plus accruing interest at 18% per annum from March 16, 2026. Failure to comply within this timeframe may result in the bank taking possession of secured assets and proceeding with their sale through lease, assignment, or auction.

The company has stated its intention to discharge the entire liability within the statutory 60-day period and confirmed that there is currently no impact on day-to-day operations. The management remains committed to ensuring a smooth settlement of dues with the bank.