Shiva Granito Export Limited appointed Krati Maheshwari and Rekha Panwar as additional Non-Executive Independent Directors on August 11, 2026. The Board of Directors approved the appointments during a meeting held at the company’s registered office in Udaipur, Rajasthan. The new directors will serve a term of five years, pending regularization by shareholders at the company’s next Annual General Meeting.

The appointments were made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Managing Director Abhinav Upadhyay confirmed the board’s decision in a disclosure submitted to the Bombay Stock Exchange. The filings also referenced SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.

Both appointees bring specialized professional expertise to the board. Krati Maheshwari is a Qualified Company Secretary from the Institute of Company Secretaries of India with more than five years of experience in secretarial compliance. Rekha Panwar is a qualified legal professional with more than five years of experience in law, corporate laws, regulatory compliance, and governance. Neither director is related to any existing director or their relatives.

The Board has assigned both new directors to key oversight committees. They have been appointed as members of both the Audit Committee and the Nomination & Remuneration Committee. Rekha Panwar will serve as the Chairperson of both committees, while Krati Maheshwari will serve as a member. Mrs. Rachna Upadhyah, a Non-Executive Non-Independent Director, continues as a member of both committees.

Committee Composition Changes

The induction of the new directors alters the composition of Shiva Granito Export’s statutory committees. The updated structures are detailed below:

Audit Committee

Nomination And Remuneration Committee

Regulatory Compliance and Eligibility

The disclosure confirms that neither Krati Maheshwari nor Rekha Panwar is debarred from holding the office of Director under any SEBI order or other authority orders. This compliance aligns with Circular No. LIST/COMP/14/2018-19 issued by SEBI, as well as BSE Circular CML/2018/02 dated June 20, 2018. Both appointees currently hold no directorships in other listed entities.

Shiva Granito Export Ltd reported a standalone net loss of ₹5.80 lakh for the fiscal year ended March 31, 2026 (FY26), reversing a net profit of ₹2.48 lakh recorded in FY25. The Board of Directors approved the audited financial results on August 6, 2026, during a meeting held at its registered office in Udaipur. While revenue from operations expanded by 36.3% year-on-year to ₹1,173 lakh, the profitability deterioration and significant audit qualifications raise concerns over the quality of earnings and asset valuation.

The statutory auditor, Ankit Suresh Jain & Co., issued a qualified opinion on the standalone financial results for the half-year and full-year ended March 31, 2026, pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The qualification stems from four material areas: non-provision for expected credit losses on trade receivables amounting to ₹7,74,37,115; lack of appropriate inventory valuation due to unavailable stock records; failure to provide interest payable to micro and small enterprises under Section 16 of the Micro, Small and Medium Enterprises Development Act, 2006; and absence of actuarial valuation for gratuity liability under Ind AS 19.

Financial Performance Overview

Shiva Granito Export’s revenue from operations rose to ₹1,173 lakh in FY26 from ₹860.49 lakh in FY25. Other income remained flat at ₹5.21 lakh. Total expenses increased to ₹1,176.75 lakh from ₹858.73 lakh, driven primarily by higher purchases of stock-in-trade (₹979.82 lakh vs ₹633.71 lakh) and cost of materials consumed (₹108.25 lakh vs ₹283.43 lakh). Depreciation and amortization expense rose to ₹28.99 lakh from ₹21.57 lakh.

The company incurred a tax expense of ₹7.26 lakh (current tax ₹0.23 lakh and deferred tax liability ₹7.03 lakh), contributing to the net loss. Earnings per share stood at -₹0.04 basic and diluted, compared to ₹0.02 in the previous year.

What the Numbers Show

The divergence between revenue growth and profitability highlights margin compression. While top-line grew by 36.3%, total expenses grew at a faster pace of 37.0%, eroding operating margins. The shift from profit to loss is largely attributable to the timing of deferred tax liabilities and higher operational costs. Furthermore, the cash flow statement reveals that cash generated from operations was ₹111.46 lakh in FY26, a significant improvement from the outflow of ₹741.69 lakh in FY25, suggesting better working capital management despite the accounting loss.

Balance Sheet and Cash Flow

Total assets increased to ₹2,029.34 lakh from ₹1,898.49 lakh in FY25. Current assets dominated the balance sheet at ₹1,713.09 lakh, with inventories standing at ₹946.39 lakh and cash and cash equivalents at ₹796.91 lakh. Total borrowings decreased slightly to ₹411.75 lakh (short-term ₹252.20 lakh, long-term ₹159.55 lakh) from ₹518.64 lakh in the prior year.

Operating cash flow turned positive at ₹110.32 lakh, offsetting investing outflows of ₹34.20 lakh and financing outflows of ₹77.28 lakh. The net decrease in cash and cash equivalents was marginal at ₹1.16 lakh, ending the year with ₹82.16 lakh in bank balances other than cash equivalents.

Audit Qualifications Impact

The auditor noted that had the provision for expected credit losses of ₹7,74,37,115 been made, the profit before tax would have decreased by the same amount, significantly deepening the loss. The inability to verify inventory existence and valuation leaves a substantial portion of current assets (₹946.39 lakh) unconfirmed. Management stated it does not expect any credit loss currently and intends to address the qualifications, but the repetitive nature of these issues since FY24 underscores persistent internal control weaknesses.