Hem Holdings and Trading Limited reported a net profit of ₹61.15 lakh for FY26, reversing a loss of ₹120.31 lakh in the prior year. The company also announced the initiation of the process to surrender its Non-Banking Financial Company (NBFC) registration with the Reserve Bank of India (RBI).

The board approved the annual report and notice for the 44th Annual General Meeting (AGM), scheduled for September 29, 2026. The meeting will be held via video conferencing or other audio-visual means.

Financial Performance

Revenue from operations grew to ₹71.13 lakh in FY26 from ₹29.96 lakh in FY25. Other income declined significantly to ₹0.21 lakh from ₹7.50 lakh. Total expenses fell sharply to ₹10.18 lakh from ₹157.77 lakh, driven by a reduction in other expenses to ₹8.71 lakh from ₹155.72 lakh.

Regulatory Developments

The secretarial audit report highlighted that the company did not maintain the prescribed Net Owned Fund (NOF) required under RBI Scale Based Regulation Directions. As of March 31, 2026, NOF stood at ₹1.55 crore against a requirement of ₹5 crore. Consequently, the company initiated the surrender of its NBFC Certificate of Registration.

Additionally, the secretarial auditor noted non-compliance regarding prior written RBI approval for changes in management composition during the period.

Key Approvals at AGM

Shareholders will vote on several key resolutions:

• Adoption of audited standalone financial statements for FY26.
• Re-appointment of Shubham Arvind Kumar Jain as a director liable to retire by rotation.
• Appointment of M/S B.M. Gattani & Co. as statutory auditors for five years.
• Appointment of M/S Ajay Suresh Yadav and Associates as secretarial auditors for five years.

What the Numbers Show

The turnaround in profitability was primarily driven by a drastic reduction in operating expenses rather than organic revenue growth. While revenue more than doubled, other income collapsed from ₹7.50 lakh to ₹0.21 lakh. The expense reduction reflects the absence of large write-offs recorded in FY25, where advances written off totaled ₹143.93 lakh. This one-time item distortion makes direct operational efficiency comparisons between FY25 and FY26 limited.

Hem Holdings and Trading Limited has re-appointed Mr. Akash Somaram Prajapati as its Internal Auditor for the financial year 2026-27. The company’s Board of Directors approved the appointment during a meeting held via video conferencing on August 17, 2026.

The decision was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The re-appointment is effective from August 17, 2026, covering the entire FY26-27 period.

Auditor Profile

Mr. Prajapati is a Chartered Accountant with over five years of experience in auditing. His expertise includes financial statement audits, implementing internal risk controls, and ensuring regulatory adherence. The company noted his skill in analyzing complex financial data to enhance operational efficiencies.

The disclosure was filed with the Bombay Stock Exchange following the board meeting, which commenced at 2:00 pm and concluded at 2:30 pm. Taruna Gupta, Company Secretary and Compliance Officer, signed the filing.