Shareholders of Safa Systems & Technologies approved all 14 resolutions at the company’s fifth annual general meeting held on September 11, 2026. The meeting concluded at 3:45 pm, with 13 members attending via video conferencing.

The voting process was conducted via remote e-voting. Scrutinizer Amit Saxena & Associates confirmed that all resolutions passed with the requisite majority. The cut-off date for voting rights was September 4, 2026.

Key Resolutions Approved

The most significant special resolution authorized the company to borrow funds not exceeding ₹500 crore under Section 180(1)(c) of the Companies Act, 2013. Shareholders also approved increasing limits for creating charges on company assets.

Other major approvals included:

• Shifting the registered office from Kerala to the National Capital Territory of Delhi.
• Issuance of equity shares on a preferential basis.
• Reappointment of independent directors Sreejith Sankaranarayanan Nair and Anilkumar Bengolan.
• Reappointment of Mr. Bavaramparambil Abdhulkadher Hydrose as a director liable to retire by rotation.

Management Remuneration Changes

The AGM addressed several matters related to executive compensation. Shareholders approved waivers for the recovery of excess managerial remuneration paid to Managing Director Faizal Bavaraparambil Abdul Khader and Non-Executive Director Sruthi Muhammed Ali for the period from April 1, 2024, to March 31, 2026.

Additionally, the board secured approval for:

• Payment of managerial remuneration in excess of Section 197 limits for any financial year.
• Specific increases in remuneration for both Faizal Bavaraparambil Abdul Khader and Sruthi Muhammed Ali.

Voting Participation

A total of 251 shareholders were on record as of the cut-off date. Voting participation varied significantly across resolutions:

Promoter group participation ranged from 10.66% for the preferential issue resolution to 93.35% for financial statement adoption. Public non-institutional shareholder participation remained consistent at 36.69% of their holdings across most resolutions.

Safa Systems & Technologies Limited has scheduled its fifth Annual General Meeting (AGM) for Friday, September 11, 2026, at 3:30 p.m. IST. The meeting will be conducted exclusively through Video Conferencing (VC) or Other Audio-Visual Means (OAVM). Electronic copies of the AGM notice and the Annual Report for the financial year ended March 31, 2026, were dispatched to members with registered email addresses on August 1, 2026.

Key Meeting and E-Voting Details

The remote e-voting facility is provided by Central Depository Services (India) Limited (CDSL). Shareholders holding shares as on the cut-off date of September 8, 2026, are eligible to vote. The share transfer books of the company will remain closed from Saturday, September 5, 2026, to Friday, September 11, 2026 (both days inclusive).

In compliance with Regulation 30 and Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, pre-dispatch newspaper advertisements were published on August 12, 2026, in "Financial Express" (English) and "Metro Vaartha" (Malayalam). A post-dispatch advertisement regarding the dispatch of the Annual Report and AGM notice was published in the same newspapers on August 20, 2026.

Preferential Allotment Proposal

A primary agenda item for the AGM is the approval of a preferential allotment of up to 23,90,000 fully paid-up equity shares of face value ₹10 each. The issue price is set at ₹20.47 per share, determined based on a valuation report by Ms. R Abinaya, a Registered Valuer. The aggregate consideration for the issue will not exceed ₹4.89 crore.

The proceeds are earmarked for working capital requirements (₹3.62 crore), general corporate purposes (₹1.20 crore), and issue expenses (₹75,000). The allotment is proposed to promoters and promoter group entities, including Managing Director Faizal Bavaraparambil Abdul Khader and Sruthi Muhammed Ali. Post-allotment, the promoter group’s shareholding is expected to rise from 44.35% to 49.21%.

Financial Performance for FY26

The company reported a standalone net profit after tax of ₹252.53 lakh for FY26, an increase of 50.8% from ₹167.42 lakh in FY25. This growth occurred despite a 16.6% decline in revenue from operations, which fell to ₹4,330.64 lakh from ₹5,190.31 lakh in the previous year.

The improvement in profitability was driven by better cost management, resulting in a net profit ratio expansion to 0.58% from 0.32% in FY25. However, total borrowings increased significantly to ₹592.95 lakh from ₹392.26 lakh, leading to a higher debt-to-equity ratio of 1.56 times compared to 1.10 times in the prior year. This increase was attributed to higher utilization of working capital borrowings during the year.

What the Numbers Show

Despite the revenue contraction, the company’s operating efficiency improved, evidenced by the rise in net profit margin. However, the significant increase in short-term borrowings—particularly repayable-on-demand facilities—has heightened leverage. The debt service coverage ratio improved substantially to 1.41 times from 0.38 times, indicating better ability to meet debt obligations from earnings, though the reliance on debt financing remains a key structural shift in the balance sheet.

Shareholder Action Required

Shareholders who have not registered their email addresses are requested to update this information with their respective DPs immediately. This step is critical for receiving the AGM notice, accessing the annual report, and exercising voting rights during the meeting. Since no physical share certificates exist, separate communication under Regulation 36(1)(b) of the SEBI Listing Regulations is not required. Divya Modi, Company Secretary and Compliance Officer, signed the disclosure on behalf of the Board.