Sovereign Diamonds shareholders approved the audited financial statements for FY26 and reappointed key board members at its 52nd Annual General Meeting held on August 20, 2026. The virtual meeting saw strong participation, with 42 members casting votes across four resolutions.

The meeting was chaired by Chairman and Managing Director Ajay Gehani. All directors, the statutory auditor, and the secretarial auditor were present. Punit Shah of P. C. Shah & Co served as the scrutinizer for the e-voting process.

Key Resolutions Passed

Shareholders transacted both ordinary and special business items during the session. The ordinary business included:

• Approval of the audited annual financial statements for the year ended March 31, 2026.
• Adoption of the Board of Directors’ report and the Auditors’ report.
• Reappointment of Sumer Gehani as a director retiring by rotation.

Under special business, shareholders approved the reappointment of:

• Ajay Gehani as Chairman and Managing Director.
• Arundhati Mali as Whole Time Director and Chief Financial Officer.

Voting Results

The voting results reveal high engagement from promoter shareholders, who hold 37,62,744 shares (100% of their holdings voted). Public non-institutional shareholders participated with 3,136 shares via remote e-voting and 71 shares during the meeting.

Note: Resolution 3 (Ajay Gehani) had lower total votes polled (2,89,676) compared to other resolutions because promoter shares interested in the resolution were excluded from voting on this specific item, as per regulatory norms. Only public shareholders and non-interested promoters voted.

Meeting Proceedings

The AGM commenced at 11:00 am and concluded at 11:35 am. Remote e-voting was available from August 17 to August 19, 2026. The chairman confirmed that there were no qualifications or observations in the statutory or secretarial audit reports requiring disclosure.

Gehani informed members that the combined e-voting results and the scrutinizer’s report would be uploaded to the company website, CDSL portal, and stock exchanges within 48 hours of the meeting’s conclusion.

Sovereign Diamonds Limited has scheduled its 52nd Annual General Meeting for August 20, 2026, to seek shareholder approval for the re-appointment of its top executives and adopt the audited financial statements for the year ended March 31, 2026. The meeting will be conducted through video conferencing to transact ordinary and special business, including the re-appointment of Mr. Ajay Gehani as Chairman and Managing Director and Mrs. Arundhati Mali as Whole Time Director and Chief Financial Officer. The company reported a net loss of ₹467.12 lakh for FY26, a significant decline from the net profit of ₹1.26 lakh recorded in the previous year, citing falling diamond prices and rising gold costs as key factors.

Financial Performance

The company’s financial results for the year ended March 31, 2026, reveal a challenging operating environment. Total income decreased to ₹1,531.04 lakh from ₹2,146.62 lakh in the previous year. The net profit before tax stood at a loss of ₹461.39 lakh, compared to a profit of ₹12.73 lakh in FY25. The management attributes the losses to a fall in diamond prices, a steep rise in gold prices, and market disruption from lab-grown diamonds.

Re-appointment of Key Personnel

The Board proposes the re-appointment of Mr. Ajay Gehani as Chairman and Managing Director for a term of three years commencing July 1, 2026. His remuneration is proposed at ₹3,00,000 per month, subject to yearly increments. Additionally, Mrs. Arundhati Mali is proposed for re-appointment as Whole Time Director and Chief Financial Officer for a three-year term starting July 1, 2026, with a proposed monthly remuneration of ₹37,500. Both appointments require shareholder approval via special resolution.

Strategic Measures

In response to the financial losses, the company is realigning its business model towards products with lower raw material intensity and stronger margin profiles. This includes a focus on coloured stones, lab-grown diamonds, and lower-carat gold jewellery. The company has shifted to accepting new orders on a cash-on-delivery or cash-in-advance basis to protect margins and eliminate credit risk. The business has been downscaled to a lean operating base to navigate the competitive and disrupted market environment.

Meeting Details

The AGM will be held on Thursday, August 20, 2026, at 11.00 a.m. IST via video conferencing. The record date for determining shareholder eligibility is August 13, 2026. Remote e-voting will be available from August 17, 2026, to August 19, 2026. M/s. P. C. Shah & Co. has been appointed as the scrutinizer to oversee the voting process.