Sakthi Finance files annual secretarial compliance report for FY26

Sakthi Finance Limited has filed its Annual Secretarial Compliance Report for the financial year ended 31 March 2026, confirming adherence to key SEBI regulations while noting a technical non-compliance regarding the appointment of a senior director. The report, submitted to BSE Limited, was issued by CS R Dhanasekaran, a practicing company secretary and secretarial auditor of the company.

The audit covered the company's compliance with the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, and other relevant circulars. While the overall compliance status was positive, the report highlighted a specific deviation concerning Regulation 17(1A) of the SEBI (LODR) Regulations, 2015.

The non-compliance arose from a time lag between the Board's appointment of a non-executive independent director over the age of 75 and the subsequent approval by shareholders. The Board appointed the director on 14.08.2025, but the members' approval via Special Resolution was obtained only on 27.09.2025. This delay constituted a technical violation of the regulation, which requires such appointments to be approved by a special resolution.

In response to the observation, the management stated that there is no specific requirement in the regulation for prior approval before the appointment. The company argued that the term "unless" in the regulation does not imply prior approval. However, the management acknowledged the compliance framework and reaffirmed its commitment to strong corporate governance practices.

The report confirmed that the company has complied with all other provisions of the SEBI Act, SCRA, and related regulations. It also verified that no actions were taken by SEBI or stock exchanges against the entity, its promoters, or directors during the review period. Additionally, there were no resignations of statutory auditors, and the company does not have any material subsidiaries.

Compliance Status Overview

Particulars	Compliance Status	Observations / Remarks
Secretarial Standards	Yes	None
Adoption and updation of Policies	Yes	None
Maintenance and disclosures on Website	Yes	None
Disqualification of Director(s)	Yes	None
Preservation of Documents	Yes	None
Performance Evaluation	Yes	None
Related Party Transactions	Yes	None
Disclosure of events or information	Yes	None
Prohibition of Insider Trading	Yes	None

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-3.52%	+7.42%	+4.34%	-26.29%	-44.64%	+72.92%

Sakthi Finance has announced its audited financial results for the quarter and year ended March 31, 2026. The company reported a total income of ₹21,089.53 lakh for the year ended March 31, 2026, compared to ₹21,520.41 lakh in the previous year. Net profit for the period rose to ₹1,724.90 lakh, up from ₹1,665.15 lakh in the corresponding period last year.

Financial Performance

The company’s total revenue from operations for the year stood at ₹21,070.54 lakh. For the quarter ended March 31, 2026, the company reported a net profit of ₹561.77 lakh, a significant increase from ₹375.07 lakh in the quarter ended December 31, 2025. The earnings per share (EPS) for the full year was ₹2.67, compared to ₹2.57 in the prior year.

Metric	Year Ended 31-Mar-2026 (₹ lakh)	Year Ended 31-Mar-2025 (₹ lakh)
Total Income	21,089.53	21,520.41
Total Revenue from Operations	21,070.54	21,496.88
Net Profit	1,724.90	1,665.15
Earnings Per Share (Basic)	2.67	2.57

Dividend Declaration

The Board of Directors has recommended an equity dividend of ₹0.80 per share, which is 8 per cent on the face value of ₹10 each. The total dividend outflow aggregates to ₹517.65 lakhs, subject to Tax Deducted at Source (TDS). This declaration is subject to the approval of members at the ensuing Annual General Meeting.

NCD Redemptions

The company has scheduled the redemption of Non-Convertible Debentures (NCDs) issued under two public issues. For the NCD Public Issue 2024, the redemption is set for Thursday, July 9, 2026. This includes two options: a monthly interest option with a coupon rate of 9.00 per cent and a cumulative option with an effective yield of 9.31 per cent. The record date for this redemption has been fixed as Wednesday, June 24, 2026.

For the NCD Public Issue 2021, the redemption is scheduled for Saturday, August 29, 2026. This issue includes a monthly interest option with a coupon rate of 10.50 per cent and a cumulative option with an effective yield of 13.64 per cent. The record date for this redemption is Friday, August 14, 2026.

Asset Quality and Capital Adequacy

As of March 31, 2026, the company’s Gross Non-Performing Assets (GNPA) stood at 4.76 per cent, while Net Non-Performing Assets (NNPA) were at 2.25 per cent. The Capital Adequacy Ratio was reported at 20.45 per cent. The company confirmed that the impairment allowances made under Ind AS 109 exceed the total provisions required under IRACP norms, and consequently, no amount is required to be transferred to the impairment reserve.