Vaxfab Enterprises has incorporated a wholly owned subsidiary in the United Arab Emirates to expand its international trading and consulting footprint. The new entity, named Al Rafa Enterprise FZ-LLC, was registered on August 6, 2026, under the Ras Al Khaimah Economic Zone Authority. This move positions the company to engage directly in cross-border trade for seeds, packaging materials, and plastic raw materials, while also offering information technology consultancy services from a strategic Gulf hub.

The intimation was filed on August 11, 2026, with the Bombay Stock Exchange and the Calcutta Stock Exchange under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The delay in filing was attributed to the late receipt of the Certificate of Incorporation and other legal documents from the UAE authorities. The disclosure complies with Schedule III of the SEBI Listing Regulations and relevant SEBI Master Circulars dated November 11, 2024, and December 31, 2024.

Al Rafa Enterprise FZ-LLC is structured as a free zone company, allowing it to conduct lawful business activities within the designated area of the Ras Al Khaimah Economic Zone. The subsidiary’s license permits it to exercise all necessary legal actions to realize its business objects. As a newly incorporated entity, it has not yet commenced business operations, and therefore, no turnover or size metrics are currently applicable. The establishment does not involve any related party transactions, nor do promoters or group companies hold any separate interest in the entity beyond Vaxfab’s 100% stake.

The initial capital for the subsidiary is provided in cash by Vaxfab Enterprises. The cost of acquisition is structured at AED 1,000 per share. Vaxfab holds 100% of the shares, ensuring complete control over the subsidiary’s strategic direction and operational decisions. No governmental or regulatory approvals beyond the initial incorporation were required for this acquisition.

Subsidiary Details

Business Scope

The subsidiary is licensed to operate across multiple trading and service verticals. The primary activities include:

• Seeds Trading
• Packing & Packaging Materials Trading
• Plastic & Nylon Raw Materials Trading
• Information Technology Consultants
• General Trading

This diversified mandate allows the subsidiary to source and distribute essential agricultural inputs and industrial materials while leveraging IT expertise to support operational efficiency. The inclusion of general trading provides flexibility to adapt to market opportunities within the free zone regulations.

Strategic Implications

The incorporation of Al Rafa Enterprise FZ-LLC marks Vaxfab Enterprises’ entry into the UAE market, a key gateway for trade between Asia, Africa, and Europe. By establishing a local presence, the company can mitigate logistical challenges and reduce transaction costs associated with importing seeds and packaging materials. The addition of IT consulting services suggests an intent to integrate technology solutions into its supply chain or offer value-added services to clients in the region. As the subsidiary begins operations, it may enhance Vaxfab’s revenue diversification and strengthen its position in the global agri-inputs and packaging sectors.

Vaxfab Enterprises Limited reported a standalone profit of ₹363.80 lakh for the financial year ended March 31, 2026, while its consolidated results reflected a loss of ₹463.08 lakh for the same period. However, the statutory auditors, Chandabhoy & Jassoobhoy, issued a disclaimer of opinion on both the standalone and consolidated financial results due to significant inadequacies in record-keeping and documentation.

The Board of Directors approved the audited financial results for the quarter and year ended March 31, 2026, at a meeting held on May 30, 2026. The audit report highlighted that the company was unable to provide sufficient evidence regarding the completeness and accuracy of balances because certain records pertaining to prior periods were not adequately maintained by the previous management. This included deficiencies in books of account, supporting records, and documentation for sales, purchases, inventory, trade receivables, and trade payables.

Further, the auditors noted that the company had granted and received unsecured loans without formal loan agreements and, in certain cases, without obtaining balance confirmations from the respective parties. The company also failed to maintain requisite records to identify and classify creditors under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act), preventing verification of compliance with disclosure requirements.

Standalone Financial Performance

For the financial year ended March 31, 2026, Vaxfab Enterprises reported total revenue of ₹9959.59 lakh, a significant increase from ₹5937.66 lakh in the previous year. Total expenses for the year stood at ₹9442.12 lakh compared to ₹5867.30 lakh in FY25. The profit before tax for the year was ₹517.47 lakh, up from ₹70.36 lakh in the prior year.

Consolidated Results and Auditor Qualifications

On a consolidated basis, the company reported a total revenue of ₹13675.13 lakh for FY26 against ₹7068.72 lakh in the previous year. However, the consolidated results swung to a loss of ₹463.08 lakh from a profit of ₹48.93 lakh in FY25. The auditors reiterated their disclaimer of opinion for the consolidated results, citing similar issues regarding unsecured loans within the group and the absence of records handed over by the previous management of certain subsidiaries.

The subsidiaries included in the consolidation were Eklingji Tradelink Private Limited and Satvat Agro LLP. The management stated that the qualifications related to the non-accessibility of documents for the time being and asserted that these issues do not have any impact on the financial results.