Shree Securities Limited held its 33rd Annual General Meeting (AGM) on September 29, 2026, where shareholders adopted the audited financial statements for FY26 and approved key corporate actions including share capital consolidation.

The meeting, conducted via video conferencing from the company's registered office in Kolkata, also saw the appointment of a new statutory auditor and the elevation of Udayan Shardul Kachchhy as a Non-Executive Independent Director. Additionally, members approved increasing the foreign portfolio investor holding limit to 49% of paid-up equity.

Key resolutions passed

The following ordinary and special resolutions were passed during the proceedings:

• Adoption of Financials: Members received, considered, and adopted the audited financial statements for the year ended March 31, 2026, along with Board and Auditor reports.
• Auditor Appointment: The appointment of the statutory auditor and the fixing of their remuneration were approved.
• Loans and Guarantees: Approval was granted to advance loans, give guarantees, or provide securities under Section 185 of the Companies Act, 2013. The threshold for such activities under Section 186 was also increased.
• FPI Limit Increase: The limit for total shareholding by Foreign Portfolio Investors (FPIs) and Foreign Institutional Investors (FIIs) was raised to 49% of the paid-up equity share capital.
• Director Appointment: Udayan Shardul Kachchhy was appointed as a Non-Executive Independent Director.
• Share Capital Consolidation: Members approved the reduction and consolidation of the company's share capital.

Meeting proceedings and attendance

The AGM commenced at 4:00 pm and concluded at 4:25 pm. Bhavya Dhiman, Managing Director and CEO, chaired the meeting. The Company Secretary confirmed that the Statutory Auditors' Report and Secretarial Audit Report contained no qualifications.

Voting was conducted electronically through the Central Depositories Services India Limited (CDSL) system. M/s Vishakha Agrawal & Associates served as the scrutinizer to ensure fair voting processes.

The results of the e-voting are expected to be disclosed to stock exchanges and displayed on the company website by October 1, 2026.

Shree Securities Limited has filed its revised 33rd Annual Report for FY26, proposing a significant reduction and consolidation of its share capital to eliminate accumulated losses. The company aims to reduce its paid-up equity share capital by 98%, cancelling ₹78.2 crore of capital to set off against accumulated losses of ₹86.7 crore as of June 30, 2026.

The restructuring plan requires shareholder approval at the upcoming Annual General Meeting (AGM) scheduled for September 29, 2026. Following the reduction, the remaining capital will be consolidated, increasing the face value of each share from Re. 1 to ₹10. The move is designed to present a cleaner balance sheet and restore eligibility for raising fresh capital.

Capital Reduction Scheme

The proposed scheme involves reducing the existing paid-up equity share capital from ₹79.8 crore (79.8 crore shares of Re. 1 each) to ₹1.59 crore (1.59 crore shares of Re. 1 each). This reduction will extinguish ₹78.2 crore of accumulated losses. Subsequently, the post-reduction capital will be consolidated into 15.96 lakh shares of ₹10 each.

The scheme does not involve any cash outflow or payout to shareholders. The proportionate shareholding pattern will remain unchanged. The effective date for the reduction will be upon confirmation by the National Company Law Tribunal (NCLT).

Financial Performance FY26

Shree Securities reported a net profit of ₹6.17 lakh for FY26, a sharp decline from ₹65.72 lakh in FY25. Revenue from operations rose 9.4% to ₹74.53 lakh from ₹68.08 lakh in the previous year. The drop in profitability was driven by higher expenses, including finance costs of ₹14.38 lakh compared to nil in FY25.

The company's total assets increased to ₹18.27 crore from ₹10.30 crore in FY25, largely due to a rise in loans outstanding to ₹15.80 crore from ₹9.08 crore. Borrowings also surged to ₹7.42 crore from nil in the prior year.

Governance and Auditor Changes

The board appointed Mr. Udayan S Kachchhy as an Additional Non-Executive Independent Director effective September 4, 2026, pending shareholder approval at the AGM. He brings expertise in accountancy and education management.

M/s. Sunit M Chhatbar & Co., Chartered Accountants, was recommended for appointment as Statutory Auditors for five years from FY27 to FY31. This follows the resignation of M/s. R. K. Kankaria & Co., which served as auditors until August 10, 2026. The secretarial audit report highlighted several compliance delays, resulting in fines imposed by BSE for late submission of investor complaints, corporate governance reports, and financial results.

Key Resolutions

Shareholders will vote on several special resolutions at the AGM:

• Approval of the reduction and consolidation of share capital.
• Increase in the foreign portfolio investor (FPI) limit to 49% of paid-up equity share capital.
• Authorization for the board to advance loans and provide guarantees under Section 185 and 186 of the Companies Act, 2013, up to ₹100 crore.
• Appointment of Mr. Udayan S Kachchhy as an Independent Director for five years.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE397C01026/d53483be-43e8-4f4f-a09d-497e556f946f.pdf