Geetanjali Credit and Capital Limited appointed Ms. Purvi Katyal as a Non-Executive Independent Director on August 25, 2026. The appointment is subject to shareholder approval at the ensuing general meeting.

The Board of Directors made the decision following a recommendation from the Nomination and Remuneration Committee. Ms. Katyal will serve for a period of five consecutive years, from August 25, 2026, to August 24, 2031.

Director Profile

Ms. Katyal brings over seven years of professional experience in corporate laws and governance. She holds directorships in three listed entities: Acme Resources Limited, Deep Blue Xpress Limited, and Sterling Agro Industries Limited. She does not hold any shares in Geetanjali Credit and Capital Limited.

Board Meeting Outcome

The board meeting commenced at 12:30 pm and concluded at 1:00 pm on August 25, 2026. In addition to the director appointment, the board approved the reconstitution of various board committees. The company disclosed these developments in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Geetanjali Credit and Capital Limited returned to profitability in FY26, reporting a net profit of ₹1.50 lakh compared to a loss of ₹3.44 lakh in FY25. The turnaround was driven by total revenue from operations of ₹9 lakh, up from nil in the previous year, while total expenses stood at ₹7.50 lakh. Despite the operational improvement, statutory auditors S K Bhavsar & Co. issued a qualified opinion on the financial statements due to significant monitoring gaps regarding loan recoverability and regulatory compliance failures.

The audit report highlights critical internal control weaknesses that undermine the reliability of the company’s financial data. Auditors noted they were unable to confirm the recoverability of loans and advances amounting to ₹256.27 lakh, as no balance confirmations were received from counterparties. Furthermore, the company failed to appoint an internal auditor for the entire financial year, violating Section 138 of the Companies Act, 2013. This absence created a significant gap in the internal control framework, affecting the accuracy of financial reporting.

Regulatory non-compliance remains a persistent issue for the lender. The secretarial audit report disclosed that the company has not paid its annual listing fees, placing it in violation of SEBI and exchange regulations. Additionally, the board composition was not aligned with the requirements of the Companies Act and SEBI Listing Obligations and Disclosure Requirements (LODR) during parts of the year. Management stated it intends to regularize these compliances shortly.

Tax liabilities pose another material risk to the company’s balance sheet. Auditors flagged an outstanding demand of ₹529.75 lakh from the Income Tax Department, for which the company provided no documentary evidence of pending appeals. Consequently, auditors could not form an opinion on the duration or quantum of the payable amount. This contingent liability significantly exceeds the company’s equity base of ₹310.70 lakh.

Corporate governance changes marked the period, with several director appointments and resignations. Dharmendra Hasmukhbhai Vyas was appointed Managing Director and CFO effective April 21, 2026, following the cessation of Vitthal Kumar Jajoo. Shareholders are set to approve an increase in authorized share capital from ₹5 crore to ₹95 crore at the upcoming Annual General Meeting on August 21, 2026. No dividend was recommended for the year.

Financial Performance Overview

What the Numbers Show

The return to profitability is driven entirely by new operational revenue rather than cost optimization; total expenses more than doubled year-on-year. However, the quality of this profit is questionable given the auditor’s inability to verify the primary asset class—loans and advances of ₹256.27 lakh. With trade receivables rising to ₹10.62 lakh and cash balances dropping to ₹0.25 lakh, liquidity remains tight. The divergence between reported profit and the massive unverified tax liability of ₹529.75 lakh suggests the balance sheet may be materially overstated until these contingencies are resolved.