Patron Exim has appointed M/s. A. Shubhangi & Associates as its secretarial auditor for a term of five consecutive financial years. The Board of Directors approved the appointment during its meeting held on September 8, 2026.

The firm will serve from FY27 to FY31, subject to shareholder approval at the upcoming Annual General Meeting. This move aligns with Section 204 of the Companies Act, 2013 and Regulation 24A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Key Corporate Actions

The Board also approved the Draft Directors' Report for the financial year ended March 31, 2026. Additionally, the company scheduled its 4th Annual General Meeting (AGM) for September 30, 2026.

Auditor Appointment Details

The Secretarial Auditor confirmed it is eligible and not disqualified from appointment. The firm holds a valid Peer Review Certificate as required by applicable provisions.

AGM Schedule and Voting

The 4th AGM will be conducted via Video Conferencing or Other Audio-Visual Means on September 30, 2026, at 4:00 pm. The deemed venue is the company's registered office in Ahmedabad.

Shareholders holding shares in dematerialized form as on September 23, 2026, can cast votes through remote e-voting or ballot paper. The e-voting period runs from September 27, 2026, at 9:00 am to September 29, 2026, at 5:00 pm.

Patron Exim Limited reported a net loss of ₹108.96 lakh for the financial year ended March 31, 2026, a significant decline from the net profit of ₹7.10 lakh recorded in the previous year. The company's total revenue for FY26 stood at ₹2,429.52 lakh, while total expenditure rose to ₹2,537.98 lakh. The statutory auditors, J. M. Patel & Bros., issued a qualified opinion on the financial results, highlighting several material irregularities including increased related party transactions and non-compliance with statutory requirements.

Audit Qualifications and Internal Controls

The auditors flagged a substantial increase in loans and advances to related parties, which rose from ₹16.41 crore in the previous year to ₹28.78 crore in FY26. The report noted that these advances carry a risk of default and generate no income. Additionally, the company failed to implement accounting software with a non-disable audit trail as mandated by Section 128(5) of the Companies Act, 2013, preventing auditors from assessing the reliability of the audit trail. The company also failed to appoint an internal auditor during the year, exposing it to increased operational and regulatory risks.

Financial Performance and Liquidity

Patron Exim faced severe liquidity constraints during the year, reflected in a negative cash flow from operating activities of ₹201.25 lakh. The company reported cash losses of ₹99.51 lakh after adjustments. Advances to creditors amounting to ₹5.61 crore were deemed doubtful of recovery, and tax deducted at source (TDS) of ₹34.45 lakhs remained unpaid to the government. The auditors also noted an outstanding income tax demand of ₹15.37 crore and an interest demand of ₹2.61 crore for the assessment year 2023-24, which the company has not provided for as a contingent liability.

Asset Quality and Contingent Liabilities

The auditors raised concerns over inventory valuation, citing a closing stock of ₹1.02 crore for which no physical verification was conducted and which is not insured. Investments totaling ₹8.84 crore made to two parties, including related parties, have yielded no income. The company is also contesting a GST demand of ₹21.98 crore from FY 2017-18 against an erstwhile firm, Arvind Traders. The management stated that these qualifications are procedural in nature and that it has initiated corrective measures to strengthen compliance and documentation.

Financial Results for FY26