vsf projects has called a postal ballot to seek shareholder approval for doubling its authorized share capital and securing loans worth ₹15 crore from its promoters. The company aims to increase the authorized capital from ₹17 crore to ₹34 crore by creating 1.7 crore additional equity shares of ₹10 each. This expansion is intended to support the development of its Multi-Product Free Trade Warehousing Zone.

The board is also seeking approval for three related party transactions involving borrowings from promoter directors. The company proposes to avail unsecured, interest-free loans repayable on demand from Narayana Murthy Bobba, Vijaya Lakshmi Bobba, and Lakshminarasimha Bobba Chowdary. Each loan is proposed for an aggregate amount not exceeding ₹5 crore, taking the total potential borrowing to ₹15 crore.

These resolutions are deemed material as the company did not generate any revenue during the immediately preceding financial year, FY 2025-26. The explanatory statement notes that the company has been incurring losses for several quarters and faces increased working capital requirements. The Audit Committee has reviewed and approved these transactions, subject to shareholder consent.

The company has fixed Friday, June 12, 2026, as the cut-off date to determine the entitlement of members to cast their votes. Remote e-voting will commence on Tuesday, June 16, 2026, at 09:00 Hours IST and conclude on Wednesday, July 15, 2026, at 17:00 Hours IST. The results of the postal ballot will be announced within two working days of the conclusion of the voting process.

Mr. Mohit Gurjar, a Practicing Company Secretary and Partner of PS Rao & Associates, has been appointed as the Scrutinizer to ensure the conduct of the postal ballot in a fair and transparent manner. The notice of the postal ballot is available on the company’s website and the CDSL e-voting portal.

VSF Projects Limited reported a net loss of ₹43.22 lakh for the financial year ended March 31, 2026, widening from a net loss of ₹29.41 lakh in the previous year. The company recorded zero income from operations for both the quarter and the year, relying solely on other income of ₹63.64 lakh for the fiscal year. The Board of Directors approved the audited financial results and proposed increasing the authorized capital from ₹17 crore to ₹34 crore, subject to shareholder approval.

Financial Performance

The company's total income for FY26 stood at ₹63.64 lakh, a slight increase from ₹42.88 lakh in FY25, driven entirely by other income. Total expenses rose significantly to ₹103.73 lakh from ₹69.86 lakh in the prior year, primarily due to increased finance costs of ₹16.71 lakh and other expenses of ₹60.47 lakh. Consequently, the loss before tax widened to ₹40.09 lakh from ₹26.98 lakh.

For the quarter ended March 31, 2026, the company posted a net loss of ₹18.20 lakh compared to a profit of ₹2.58 lakh in the same quarter of the previous year.

Capital Structure and Assets

The board approved increasing the authorized capital from ₹17 crore to ₹34 crore to strengthen the company's financial base. As of March 31, 2026, the company's total assets stood at ₹19,137.75 lakh, up from ₹17,179.47 lakh in the previous year. Non-current assets included capital work in progress of ₹11,634.34 lakh and property, plant, and equipment of ₹6,556.17 lakh. Borrowings increased to ₹8,468.26 lakh from ₹6,043.69 lakh, reflecting higher debt utilization.

Regulatory Compliance

The audited financial results were reviewed by the Audit Committee and approved by the Board on May 25, 2026. The statutory auditors, V D P & Co., Chartered Accountants, issued an unmodified opinion on the standalone annual financial results prepared in accordance with Indian Accounting Standards (Ind AS). The intimation was signed by B. N. Murthy, Managing Director, and submitted to BSE Limited.