Indo Euro Indchem Limited held its 36th Annual General Meeting on September 29, 2026, where shareholders adopted the audited financial statements for FY26 and approved key board appointments.

The meeting was conducted via Video Conferencing and Other Audio-Visual Means in compliance with Companies Act, 2013 provisions and SEBI Listing Regulations. The resolutions were passed with requisite majority through remote e-voting and e-voting at the meeting.

Board appointments and re-appointments

Shareholders approved the re-appointment of Yash Manish Shah as a director retiring by rotation. Additionally, Vidhi Ankit Pala was appointed as an Independent Director for a first term of five consecutive years. Paresh Shah was appointed as Whole-time Director for a period of five years effective August 27, 2026.

Proceedings and compliance

The AGM commenced at 02:30 pm and concluded at 03:09 pm. Due to the ill health of Chairman Vardhaman Shah, Company Secretary Vaibhav Kadam addressed the members. Thirty members participated through video conferencing. No speakers raised questions during the session.

The company confirmed that all resolutions set out in the notice were passed. Voting results will be intimated to stock exchanges and uploaded on the company website and Purva Sharegistry platform.

Indo Euro Indchem reported a decline in net profit for the financial year ended March 31, 2026, driven by higher finance costs and lower other income, despite an improvement in operating margins before depreciation.

The chemical trading company posted a net profit of ₹31.90 lakh for FY26, down from ₹36.23 lakh in the previous year. Revenue from operations remained relatively flat at ₹1,372.80 lakh, compared to ₹1,388.59 lakh in FY25.

Financial Performance

While revenue dipped slightly, the company's core operational efficiency showed marginal improvement. Profit before interest and depreciation rose to ₹49.31 lakh from ₹46.84 lakh in the prior year. However, this gain was offset by a significant increase in finance costs, which jumped to ₹3.08 lakh from ₹0.42 lakh.

Other income also contracted to ₹52.32 lakh from ₹61.39 lakh, primarily due to a drop in interest income and the absence of commission income recorded in the previous year.

Balance Sheet Shifts

A notable shift occurred in the company's asset allocation. Loans granted surged to ₹1,210.12 lakh from ₹238.93 lakh, indicating a heavy deployment of surplus funds into interest-bearing loans. Conversely, trade receivables fell sharply to ₹304.84 lakh from ₹1,385.66 lakh, suggesting improved collection efficiency or a change in credit terms.

Cash and cash equivalents decreased to ₹5.43 lakh from ₹13.73 lakh. The current ratio weakened significantly to 0.71 from 1.88, reflecting a tighter liquidity position relative to current liabilities.

Governance and Compliance Issues

The secretarial audit report highlighted several compliance lapses. The company failed to update its website with mandatory disclosures under SEBI Listing Regulations. Additionally, it did not submit intimation regarding newspaper publications to stock exchanges for the quarters ended June 30, 2025, and September 30, 2025.

More critically, the audit noted violations of Section 185(1) of the Companies Act, 2013, regarding loans advanced to entities owned by directors or their relatives. Loans totaling ₹6.15 crore were given to Vishal Enterprises (owned by Director Akshit Lakhani) and ₹4.33 crore to RL Global (owned by a relative of a director). The auditors classified these as loans to directors in substance.

Furthermore, the company paid remuneration exceeding the limits approved by members in January 2023, violating Section 197 of the Companies Act. The Board has acknowledged these issues and committed to corrective measures.

What the Numbers Show

The divergence between rising operating profit before depreciation and falling net profit highlights the impact of non-operational expenses. Finance costs increased seven-fold, while other income declined by nearly 15%. This suggests that while core trading operations stabilized, the bottom line was pressured by higher borrowing costs and reduced ancillary income streams.