Shree Securities shareholders reject borrowing powers at AGM

Shree Securities Limited shareholders rejected proposals to increase the company's borrowing powers and foreign investment limits during its 32nd Annual General Meeting (AGM) held on June 2, 2026. While the audited financial statements for the financial year ended March 31, 2025, were adopted, resolutions seeking approval for loans under Section 185 and 186 of the Companies Act, 2013, and an increase in the Foreign Portfolio Investor (FPI) limit to 49% were voted down. The meeting was conducted via video conferencing, chaired by Managing Director Bhavya Dhiman, with 79 public shareholders attending through the platform.

Resolutions Passed

The members adopted the audited financial statements for FY25 along with the reports of the Board of Directors and auditors. The Statutory Auditors' Report and Secretarial Audit Report had no qualifications. Additionally, the regularization of the appointment of three non-executive independent directors—Mr. Smit Hasmukhbhai Rachhadiya, Mr. Kishankumar Dhirajlal Tilva, and Mrs. Dimpi Jatin Changela—was approved with a special majority. The company also secured approval for the appointment of M/s Kirti Sharma & Associates as Secretarial Auditor for a term of five years from FY 2025-26 to FY 2029-30.

Resolutions Not Passed

Shareholders voted against three key special resolutions. The proposal to approve loans, guarantees, or securities under Section 185 of the Companies Act, 2013 was not passed. Similarly, the resolution to increase the threshold for loans, guarantees, and investments under Section 186 of the Companies Act, 2013 was rejected. Furthermore, the motion to increase the limit for total shareholding of all registered Foreign Portfolio Investors (FPIs) and Foreign Institutional Investors (FIIs) to 49% of the paid-up equity share capital did not receive approval.

Meeting Details

M/s. Vishakha Agrawal & Associates, Practicing Company Secretary, was appointed as Scrutinizer to supervise the voting process. The total number of shareholders as on the cut-off date of May 26, 2026, was 92,982. The results of the remote e-voting and voting at the AGM were disclosed to the Stock Exchanges and displayed on the company's website.

Resolution	Status
Adoption of Audited Financial Statements for FY25	Passed with Requisite Majority
Regularization of Mr. Smit Hasmukhbhai Rachhadiya	Passed with Special Majority
Regularization of Mr. Kishankumar Dhirajlal Tilva	Passed with Special Majority
Regularization of Mrs. Dimpi Jatin Changela	Passed with Special Majority
Appointment of Secretarial Auditor	Passed with Requisite Majority
Approval for loans/guarantees under Section 185	Not Passed
Increase in threshold under Section 186	Not Passed
Increase FPI/FII limit to 49%	Not Passed

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+4.55%	+9.52%	+4.55%	-4.17%	-25.81%	-82.44%

Shree Securities reported a 90.6% decline in net profit to ₹6.17 lakh for the financial year ended March 31, 2026, down from ₹65.73 lakh in the previous year. Revenue from operations rose 9.5% to ₹74.53 lakh from ₹68.08 lakh in FY25. The Board of Directors approved the audited standalone financial results for the quarter and year ended March 31, 2026, at a meeting held on May 28, 2026.

For the quarter ended March 31, 2026, the company reported a net loss of ₹25.22 lakh, compared to a net profit of ₹30 lakh in the corresponding quarter of the previous year. Total income for the quarter stood at ₹26.82 lakh, a decrease from ₹21.26 lakh in the prior year period. The decline in quarterly profitability was primarily driven by a significant increase in expenses, which rose to ₹52.04 lakh from ₹3.18 lakh in the same quarter last year.

Financial Performance

The table below summarizes the financial performance for the quarter and year ended March 31, 2026:

Particulars	Quarter Ended 31-Mar-26 (Audited)	Quarter Ended 31-Mar-25 (Audited)	Year Ended 31-Mar-26 (Audited)	Year Ended 31-Mar-25 (Audited)
Total Revenue from operations	26.65	21.20	74.53	68.08
Total Income	26.82	21.26	74.70	68.35
Total Expenses	52.04	3.18	68.53	14.56
Profit/(Loss) for the period	(25.22)	30.00	6.17	65.73

Auditor's Observations

M/s. R. K. Kankaria & Co, Chartered Accountants, the statutory auditors, issued an audit report with an unmodified opinion on the standalone financial results. However, the auditors included an emphasis of matter paragraph regarding unsecured loans advanced by the company. The company has advanced unsecured loans aggregating to ₹3,15,00,000 to two parties, Shreeji Shipping and Siddhi Marine Services LLP, at a concessional interest rate of 4% per annum, which is lower than the prevailing bank rate.

Balance Sheet Highlights

The company's total assets increased to ₹1,826.62 lakh as of March 31, 2026, from ₹1,030.38 lakh in the previous year. Loans constituted a significant portion of the assets at ₹1,580.37 lakh, up from ₹908.23 lakh in FY25. Borrowings stood at ₹741.69 lakh as of March 31, 2026, compared to nil in the previous year. Equity share capital remained unchanged at ₹7,980 lakh.