Shantai Industries Limited concluded its 41st Annual General Meeting on September 29, 2026, with shareholders approving a resolution to increase the company's overall borrowing limits under Section 180 of the Companies Act, 2013.

The meeting, conducted via Video Conferencing/Other Audio-Visual Means (VC/OAVM), also ratified related party transactions and approved loans, guarantees, or securities under Sections 185 and 186. These financial authorizations signal potential expansion in capital expenditure or working capital needs for the Surat-based entity.

Board appointments and re-elections

Shareholders approved the appointment of three individuals as Executive Directors: Jinesh Kanaiyalal Pandav, Dishant Kanubhai Pandav, and Nikunj Vijaybhai Prajapati. Additionally, Keyur Gordhanbhai Kaklotar was appointed as a Non-Executive Independent Director for a five-year term.

The meeting saw the re-appointment of Vasudev Fatandas Sawlani as Whole-Time Director, who retired by rotation. M/S. DSI & Co., Chartered Accountants, were re-appointed as Statutory Auditors for a second term of five years, extending their tenure until the conclusion of the 46th AGM.

Corporate restructuring proposals

A significant special business item involved the approval to change the name of the company, with consequent alterations to its Memorandum and Articles of Association. The Object Clause in the Memorandum of Association was also altered, indicating a potential shift in business scope or strategic direction.

Procedural details

The meeting commenced at 4:00 pm and concluded at 4:19 pm. Voting results are pending declaration by the Chairman upon receipt of the Scrutinizer's report from Ranjit Kejriwal. The notice for the meeting was circulated electronically in compliance with Ministry of Corporate Affairs and SEBI circulars.

Shantai Industries Limited reported a net loss of ₹131.4 lakh for FY26, marking a sharp reversal from the ₹30.6 lakh profit recorded in the previous fiscal year. The Surat-based textile manufacturer is now proposing a complete business transformation into the food and beverage (F&B) sector following a change in ownership.

The company's revenue from operations fell nearly 52% year-on-year to ₹981.2 lakh in FY26, down from ₹2,025.0 lakh in FY25. This decline was accompanied by a significant contraction in total assets, which dropped from ₹1,477.7 lakh to ₹635.7 lakh as of March 31, 2026. The balance sheet shows zero non-current assets and no borrowings, reflecting a lean operational structure as the firm prepares for its strategic shift.

What the Numbers Show

A key divergence in the financials is the surge in operating cash flow despite the reported loss. The company generated ₹299.1 lakh in cash from operating activities in FY26, compared to a cash outflow of ₹295.6 lakh in FY25. This positive cash generation was driven by a ₹664.8 lakh reduction in trade receivables, indicating improved collection efficiency or settlement of outstanding dues, which offset the operating loss of ₹127.8 lakh before tax.

Strategic Pivot and Corporate Actions

The Board of Directors has proposed changing the company's name to Radhe Dhokla Retail Limited and altering its Memorandum of Association to include manufacturing, processing, and distribution of food products, along with renewable energy activities. The proposal requires shareholder approval at the upcoming Annual General Meeting on September 29, 2026.

Key resolutions include:

• Appointment of three new Executive Directors: Jinesh Pandav, Dishant Pandav, and Nikunj Prajapati, each with a monthly remuneration of ₹1 lakh.
• A related-party lease agreement with Radhe Dhokla Private Limited for movable assets, involving a monthly rental of ₹10 lakh and a security deposit of ₹550 lakh.
• Authorization for borrowing up to ₹100 crore and providing loans/guarantees up to ₹300 crore to support future business expansion.

The company also wrote off long-outstanding export benefits totaling approximately ₹86 lakh, including IGST refunds and duty drawbacks, contributing to the bottom-line loss. Statutory auditors DSI & Co. have issued an unqualified opinion on the financial statements.