Sovereign Diamonds Limited has secured an exemption from disclosing related party transactions for the financial year 2026–27, following a board decision on May 29, 2026. The exemption, granted under Regulation 15(2) of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, relieves the company from complying with specific corporate governance provisions, including Regulation 23(9) regarding the filing of half-yearly related party transactions.

The board of directors approved the availing of the exemption during its meeting held on May 29, 2026. A letter of exemption, accompanied by a certificate from M/s. P. C. Shah & Co., Practicing Company Secretaries, was filed with BSE Limited on the same day. The certificate certifies the company's paid-up share capital and networth as of March 31, 2026, which served as the basis for the exemption.

Under Regulation 23(9) of the SEBI regulations, companies are typically required to file disclosures of related party transactions along with their financial results in a format specified by the market regulator. However, due to the exemption availed under Regulation 15(2), this specific compliance requirement is not applicable to Sovereign Diamonds Limited for FY27.

As a result, the company is not required to submit disclosures of related party transactions for every six months during the financial year 2026–27. The filing was submitted to the Department of Corporate Services at BSE Limited, with the request to update the exchange's records accordingly.

Key Details of the Exemption

Sovereign Diamonds Limited reported a net loss of ₹467.12 lakh for the financial year ended March 31, 2026, reversing the net profit of ₹1.26 lakh recorded in the previous year. The company's total income declined to ₹1,531.04 lakh in FY26 from ₹2,146.62 lakh in FY25, primarily due to a decrease in net sales. The Board of Directors approved the audited annual financial results and re-appointed key leadership and auditors for the upcoming terms.

Financial Performance

The company's net sales for the year ended March 31, 2026, fell to ₹1,408.27 lakh from ₹1,997.21 lakh in the corresponding previous period. Total expenses increased to ₹1,992.43 lakh in FY26 from ₹1,133.89 lakh in FY25, driven by higher costs of materials consumed and employee benefits expenses. The basic and diluted earnings per share (EPS) for the year stood at a loss of ₹8.07, compared to an EPS of ₹0.02 in the prior year.

Quarterly Results

For the quarter ended March 31, 2026, the company reported a net loss of ₹32.31 lakh, compared to a net loss of ₹12.58 lakh in the same quarter of the previous year. Total income for the quarter stood at ₹231.12 lakh, down from ₹435.67 lakh in Q4 FY25. The statutory auditors expressed an unmodified opinion on the audited annual financial results.

Board Approvals and Appointments

The Board approved the re-appointment of Mr. Ajay Gehani as Chairman and Managing Director effective July 1, 2026, for a term of three years. Mrs. Arundhati Mali was re-appointed as Whole Time Director and Chief Financial Officer effective July 1, 2026, for a term of three years. Additionally, the Board re-appointed M/s. P. C. Shah & Co., Practicing Company Secretaries, as Secretarial Auditors and M/s. Shrey Pandey & Associates, Chartered Accountants, as Internal Auditors.

Assets and Liabilities

As of March 31, 2026, the company's total assets stood at ₹1,284.65 lakh, a decrease from ₹2,773.96 lakh in the previous year. Total equity reduced to ₹1,239.62 lakh from ₹1,705.64 lakh, while current liabilities decreased significantly to ₹45.03 lakh from ₹1,019.39 lakh. The cash flow statement indicated a net increase in cash and cash equivalents of ₹104.26 lakh during the year, bringing the closing balance to ₹105.73 lakh.