The Board of Directors of surat trade & mercantile has approved the re-appointment of Deepak N. Shah as an Independent Director for a second term of five years. This governance move ensures continuity in the company’s independent oversight structure, with the new term commencing on August 11, 2027. The re-appointment is subject to ratification by shareholders through a Special Resolution at the ensuing 80th Annual General Meeting.

The decision was formalized during a Board meeting held on August 12, 2026, which commenced at 12:30 PM (IST) and concluded at 02:10 PM (IST). The disclosure was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. Additionally, the filing complies with Para A Part A of Schedule III of the SEBI LODR Regulations, read with SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.

Director Profile and Compliance

Deepak N. Shah, aged 76, brings over four decades of experience in statutory audits, tax audits, internal audits, management audits, and MIS-related services. He is a Fellow Member of the Institute of Chartered Accountants of India and serves as a Practicing Chartered Accountant. His extensive background supports the Board’s requirement for financial expertise among its independent directors.

Regulatory Affirmations

The filing confirms that Deepak N. Shah is not disqualified from holding the office of Director under Section 164 of the Companies Act, 2013. Furthermore, he is not debarred from holding the office of director by virtue of any SEBI order or other regulatory authority, as required under BSE Circular LIST/COMP/14/2018-19 dated June 20, 2018. The disclosure also states there are no inter-se relationships between Mr. Shah and any other director of the company, ensuring his independence.

Surat Trade & Mercantile Limited reported a 12% year-on-year increase in net profit to ₹9.67 crore for the first quarter ended June 30, 2026, driven by a robust 32% surge in revenue from operations. The Surat-based commodity trader posted revenue of ₹49.35 crore, up from ₹37.29 crore in Q1FY25, reflecting strong trading activity and improved operational efficiency. This performance highlights the company’s ability to capitalize on market opportunities despite broader sectoral volatility.

The Board of Directors approved the unaudited financial results on August 12, 2026, pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Sharp & Tannan Associates, the statutory auditors, conducted a limited review of the standalone financial statements under Standard on Review Engagements (SRE) 2410 and issued an unmodified conclusion. The results were prepared in accordance with Indian Accounting Standards (Ind AS), specifically Ind AS 34 for interim financial reporting.

Financial Performance

Total income for the quarter stood at ₹57.50 crore, compared to ₹45.14 crore in Q1FY25. Other income contributed ₹8.16 crore, a notable improvement from a negative balance of ₹0.36 crore in the preceding quarter (Q4FY26) and a positive ₹7.85 crore in the same quarter last year. Total expenses were ₹46.26 crore, with purchases of stock-in-trade accounting for ₹68.40 crore, offset by a decrease in inventories of ₹24.23 crore.

Earnings per share (basic) rose to ₹0.44 from ₹0.39 in the previous year. The company recorded a profit before tax of ₹11.24 crore, against ₹10.06 crore in Q1FY25. Tax expenses totaled ₹15.72 crore, comprising current tax of ₹9.45 crore and deferred tax of ₹6.27 crore.

Regulatory Disclosure and Governance

The company disclosed a non-compliance with Regulation 23 of the SEBI LODR Regulations regarding certain related-party transactions with Managing Director Alok P. Shah during FY25-26, which exceeded prescribed thresholds without prior shareholder approval. The matter was ratified by the Board and shareholders, and a Voluntary Settlement Application was filed with SEBI on August 11, 2026, under the Securities and Exchange Board of India (Settlement Proceedings) Regulations, 2018. The outcome remains uncertain and is disclosed as a contingent liability.

The Board approved the re-appointment of Deepak N. Shah as an Independent Director for a second term of five years, effective August 11, 2027, subject to shareholder approval at the upcoming Annual General Meeting. The 80th AGM is scheduled for September 22, 2026, via Video Conferencing. Jigar Vyas & Associates has been appointed as the scrutinizer for e-voting. The cut-off date for AGM entitlements is August 21, 2026.