Ganges Securities Limited has issued a postal ballot notice seeking shareholder approval to extend unsecured loans up to ₹15 crore to Morton Foods Limited (MFL), a related party. The proposed transaction is classified as a material related party transaction under SEBI regulations.

The resolution, approved by the Audit Committee and Board on August 13, 2026, permits the company to enter into contracts or arrangements with MFL up to the next Annual General Meeting in 2027. The loans will carry an interest rate of 9.25% per annum and are intended to meet MFL's working capital and general funding requirements. The tenure is set for one year or until the next AGM, whichever is earlier, with an option to roll over funds within this period.

Transaction Details and Terms

The proposed loan amount represents 41.54% of Ganges Securities' annual consolidated turnover for the immediately preceding financial year. For MFL, the value constitutes 20.95% of its annual consolidated turnover. The company stated that the funds will be sourced from internal accruals and other available liquid resources, with no external debt incurred for this purpose.

Financial Context of Related Party

Morton Foods Limited, engaged in manufacturing canned fruits, vegetables, and food products since 1959, reported a turnover of ₹7,158.70 lakh in FY26. However, the company recorded a Profit After Tax loss of ₹2,119.29 lakh and a negative net worth of ₹1,759.84 lakh during the same period. Ganges Securities holds a 19.68% equity stake in MFL. Ms. Urvi Mittal, Managing Director of Ganges Securities, also serves as a Director of MFL, establishing the related party connection.

What the Numbers Show

The disclosure highlights a significant divergence between the lending entity's stability and the borrower's financial health. While Ganges Securities proposes extending credit based on MFL's brand recall and market presence, MFL's FY26 financials reveal a negative net worth and substantial operating losses. The proposed loan cap of ₹15 crore exceeds MFL's entire previous year's net worth deficit by a wide margin, indicating that the credit exposure is not collateralized by the borrower's current balance sheet strength but relies on future operational recovery or promoter support, as no security is offered.

Voting Procedure

Shareholders may vote via remote e-voting through NSDL from October 14, 2026, to November 13, 2026. The cut-off date for determining voting rights was October 9, 2026. Related parties are prohibited from voting on this resolution. Results will be announced within two working days after the e-voting period concludes.

Ganges Securities Limited reported a decline in profitability for the first quarter of FY26, with standalone net profit falling to ₹8.08 lakh from ₹12.89 lakh in the corresponding period of FY25. The company’s total income from operations remained largely stable at ₹56.67 lakh, compared to ₹55.72 lakh in Q1FY25.

On a consolidated basis, net profit after tax stood at ₹122.27 lakh, down from ₹103.18 lakh year-on-year. Consolidated revenue from operations was ₹770.45 lakh, up slightly from ₹635.63 lakh in the prior year period.

Financial Highlights

The company disclosed no extraordinary or exceptional items for the period. Basic and diluted earnings per share (EPS) were ₹0.08 for the standalone segment, down from ₹0.13 in Q1FY25. Consolidated EPS stood at ₹1.22, compared to ₹1.03 previously.

What the Numbers Show

A notable divergence exists between the standalone and consolidated performance metrics. While standalone operations recorded a significant profit contraction of 37%, the consolidated entity saw a 20% increase in net profit. This suggests that subsidiaries or associates contributed positively to the group’s overall bottom line, offsetting the weaker performance of the parent company’s core operations.

Total comprehensive income for the standalone entity was ₹6,040.41 lakh, a substantial figure driven by other comprehensive income items, contrasting sharply with the modest operating profit. This indicates that non-operating factors, such as revaluation gains or actuarial adjustments, played a major role in the reported comprehensive income, rather than core business activities.

The results were filed pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The unaudited financial results are available on the stock exchange websites and the company’s website.