Milkfood Limited , a prominent player in the Indian dairy industry, has taken steps to streamline its corporate structure by initiating the process to strike off its wholly owned subsidiary, MFL Trading Private Limited. This move comes as part of the company's efforts to optimize its operations and focus on core business activities.

Key Details of the Strike-Off Application

Milkfood Limited has filed an application with the Registrar of Companies to remove MFL Trading Private Limited from the Register of Companies. The subsidiary, classified as a non-material entity, has remained dormant since its incorporation, conducting no business operations.

Subsidiary Status and Financial Impact

To provide a clear picture of the subsidiary's status, here's a breakdown of its key financial metrics:

As evident from the table, MFL Trading Private Limited has not generated any financial activity since its inception, resulting in zero impact on Milkfood Limited's consolidated financials.

Regulatory Compliance

In adherence to regulatory requirements, Milkfood Limited has:

1. Submitted Form STK-2 to initiate the strike-off process
2. Disclosed this development under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
3. Provided necessary details as per SEBI Circular No. SEBl/HO/CFD/PoD2/CIR/P/0155 dated 11 November 2024

Implications and Next Steps

The strike-off process is subject to approval from the Registrar of Companies. Once completed, it will result in the dissolution of MFL Trading Private Limited. This action is not expected to have any material impact on Milkfood Limited's operations or financial position, given the subsidiary's inactive status.

Milkfood Limited's decision to strike off this inactive subsidiary aligns with good corporate governance practices, potentially leading to a more streamlined and efficient organizational structure. Shareholders and investors may view this as a step towards optimizing the company's resources and focusing on its core dairy business operations.

As the strike-off process progresses, Milkfood Limited is expected to provide further updates to its stakeholders in compliance with regulatory requirements.

Milkfood , a prominent player in the dairy products industry, has announced its financial results for the first quarter, along with several key corporate developments. The company faced challenges during the quarter, reporting a net loss and a decline in revenue, while also making strategic appointments to its leadership team.

Financial Performance

Milkfood reported a net loss of Rs 69.00 lakhs for the quarter, compared to a profit of Rs 59.00 lakhs in the corresponding quarter of the previous year. The company's revenue from operations declined to Rs 7,366.00 lakhs from Rs 9,605.00 lakhs year-over-year, representing a decrease of 23.31%.

Despite the overall decline, the company saw a significant increase in other income, which rose to Rs 555.00 lakhs from Rs 2.00 lakhs in the same quarter last year. This substantial increase included a write-back of security deposit of Rs 310.00 lakhs and a Rs 243.00 lakhs adjustment due to revised vehicle depreciation calculations.

Key Financial Highlights

Corporate Developments

In addition to the financial results, Milkfood announced several important corporate decisions:

1. New Independent Director: The Board of Directors approved the appointment of Mrs. Jyotsna Bhatnagar as an Additional Director (Non-Executive, Independent) for a five-year term starting August 12. Mrs. Bhatnagar brings extensive experience in accounts, business management, and administration to the company.

2. Re-appointment of Managing Director: Mr. Sudhir Avasthi has been re-appointed as Managing Director for a five-year term from July 1 to June 30. Mr. Avasthi, a qualified Chartered Accountant, has over four decades of experience in finance, accounts, taxation, and corporate management.

3. New Secretarial Auditor: The company appointed Mrs. Kamlesh Gupta as Secretarial Auditor for five financial years. Mrs. Gupta is a Practicing Company Secretary with over 10 years of experience in secretarial audit, due diligence, and corporate compliance management.

4. Employee Stock Option Plan: Milkfood granted 12,18,000 stock options under its Employee Stock Option Plan, with a fair value of Rs 409.00 lakhs. The vesting period for these options is set until June 20.

Outlook

While Milkfood faced challenges in the first quarter, the company's strategic appointments and focus on corporate governance indicate a commitment to long-term growth and stability. The significant increase in other income partially offset the decline in operational revenue, demonstrating the company's ability to manage its financial resources effectively.

As Milkfood navigates through the current fiscal year, investors and stakeholders will be closely watching how these new appointments and initiatives impact the company's performance in the coming quarters.