Mishtann Foods reported a standalone net profit of ₹49.97 lakh for the quarter ended June 30, 2026 (Q1FY26), a decline from ₹94.21 lakh in the same period of the previous year. Revenue from operations fell to ₹1,828.95 lakh, compared to ₹7,078.91 lakh in Q1FY25. The Board of Directors approved the unaudited financial results on August 08, 2026, alongside noting the resignation of Independent Director Rainy Ramesh Singhi and reconstituting board committees.

The statutory auditor, H Thakkar & Co. LLP, issued a qualified opinion on both standalone and consolidated results, citing material uncertainties that cast doubt on the company’s ability to continue as a going concern. Key concerns include an Interim Order cum Show Cause Notice from the Securities and Exchange Board of India (SEBI) dated December 5, 2024, alleging fictitious sales and purchase transactions from FY2018 to FY2024 and misutilisation of rights issue proceeds amounting to ₹4,990.00 lakhs. Additionally, the company has not implemented accounting software with an audit trail feature as mandated under Rule 3(1) of the Companies (Accounts) Rules, 2014.

Financial Performance

Consolidated net profit stood at ₹48.89 lakh for the quarter, down significantly from ₹8,266.27 lakh in Q1FY25. Consolidated revenue was ₹1,828.95 lakh against ₹38,605.37 lakh in the prior year quarter. The sharp decline in consolidated figures reflects the absence of revenue from subsidiary operations which contributed heavily in the previous year.

Regulatory and Compliance Issues

The auditor highlighted several unresolved regulatory matters impacting the financial statements:

• SEBI Proceedings: SEBI alleges that trade receivables constituted approximately 97% of total assets as of September 30, 2024. The management denies these allegations and is pursuing legal remedies.
• Tax Litigations: The Goods and Services Tax (GST) Department raised a demand of ₹20,684.38 lakhs, including penalties, for the period July 1, 2017 to July 17, 2022. The company deposited ₹200.00 lakhs under protest and filed a Writ Petition before the High Court of Gujarat on April 30, 2025. An income tax provision of ₹5,191.83 lakhs as of March 31, 2026, remains unpaid, along with a disputed demand of ₹11,744.00 lakhs pending adjudication.
• Audit Trail Non-Compliance: The company cites volume of data as a challenge but intends to implement the mandatory audit trail feature starting from the second quarter of FY2027.

Corporate Governance Changes

Independent Director Rainy Ramesh Singhi resigned effective August 08, 2026, citing personal reasons. She ceased to be Chairperson of the Audit, Nomination and Remuneration, Stakeholders' Relationship, and Corporate Social Responsibility Committees, and Member of the Risk Management Committee. Consequently, the Board reconstituted its committees. Kush Jigenbhai Shah was appointed Chairperson of the Audit, Nomination and Remuneration, Stakeholders Relationship, and CSR Committees. Hiteshkumar Gaurishankar Patel, Managing Director, chairs the Risk Management Committee.

Mishtann Foods has appointed CS Namrata Girish Vyas as its Company Secretary and Compliance Officer effective July 07, 2026. The Board of Directors approved the appointment based on the recommendation of the Nomination & Remuneration Committee. Additionally, the company approved a change in its registered office address to a new location in Ahmedabad.

The appointment was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Board meeting commenced at 10:30 A.M. and concluded at 11:00 A.M. on July 07, 2026.

CS Namrata Girish Vyas brings over nine years of experience in corporate compliance, secretarial practices, accounting, auditing, and ROC-related matters. She has handled BSE compliances, board and general meeting documentation, statutory registers, and ROC filings. Her experience includes working with chartered accountant and PCS firms, managing audits, XBRL filings, company incorporations, and SEBI compliance certifications.

The Board also approved the shift of the registered office from "B/905, Empire Business Hub, Opp. Shakti Farm, Science City Road, Sola, Ahmedabad – 380060" to "403, Ganesh Glory, Gota, Ahmedabad - 382470".

Key Appointment Details