Shlokka Dyes Limited has received a qualified monitoring agency report from CRISIL Ratings Limited for the quarter ended December 31, 2025, highlighting significant concerns regarding the company's cooperation in IPO proceeds monitoring. The specialty chemicals manufacturer, which raised Rs. 5,778.86 lakhs through its Initial Public Offering, has been flagged for non-cooperation by its appointed monitoring agency.

Qualified Report Due to Non-Cooperation

CRISIL Ratings Limited issued a "Qualified Monitoring Agency Report - Issuer Not Cooperating" for the quarter ended December 31, 2025, pursuant to Regulation 262(2) of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. The monitoring agency was unable to perform its duties effectively due to Shlokka Dyes' failure to provide necessary information and documents required for monitoring IPO proceeds utilization.

Multiple Communication Attempts

CRISIL made consistent efforts to obtain the necessary information through multiple communications, including emails dated December 12, 2025, January 08, 2026, January 16, January 23, and a formal letter dated January 30, 2026, followed by another email on February 05, 2026. Despite these repeated attempts, the company remained non-cooperative, hindering CRISIL's ability to carry out its responsibilities as the monitoring agency.

IPO Proceeds Allocation

The company's IPO proceeds of Rs. 5,778.86 lakhs were originally allocated across multiple objectives as outlined in the offer document:

Impact on Monitoring Capabilities

Due to the non-cooperation, CRISIL was unable to:

• Confirm whether utilization aligned with offer document disclosures
• Verify if shareholder approval was obtained for any material deviations
• Monitor the deployment of unutilized funds
• Assess any delays in implementation of stated objectives
• Provide commentary on the viability of the projects

Company Background

Shlokka Dyes Limited operates in the specialty chemicals sector, with promoters Mr. Vaibhav Pravinchandra Shah and Ms. Shivani S Rajpurohit. The company's manufacturing facility is located at C/54, GIDC Estate, Sayakh, Bharuch, Gujarat. As an SME listed company, Shlokka Dyes is voluntarily complying with the monitoring agency reporting requirements under SEBI regulations.

Regulatory Implications

The qualified report raises concerns about corporate governance and regulatory compliance. CRISIL emphasized that stakeholders should exercise due caution when relying on this report, which carries the status 'ISSUER NOT COOPERATING'. The monitoring agency's inability to provide a comprehensive assessment is solely attributed to the issuer's non-cooperation in sharing necessary information and documents required under the monitoring agency agreement and SEBI regulations.

Shlokka Dyes Limited has announced significant changes to its leadership team following a Board of Directors meeting held on December 31, 2025. The company disclosed the resignation of its Chief Financial Officer and subsequent appointments in a regulatory filing to BSE Limited under Regulation 30 of SEBI LODR.

Board Meeting Details

The Board of Directors meeting was conducted on December 31, 2025, commencing at 5:00 PM and concluding at 6:00 PM. The meeting addressed three major agenda items including CFO resignation, new CFO appointment, and Independent Director appointment.

CFO Transition

Mr. Rajesh Bachubhai Patel has resigned from his position as Chief Financial Officer through a resignation letter dated December 31, 2025, which was duly placed before and noted by the Board of Directors. He has been relieved from his services with effect from the close of business hours on December 31, 2025, citing personal reasons for his departure.

Mr. Patel confirmed that there are no material reasons for his resignation other than those mentioned in his resignation letter. The Board of Directors has placed on record its appreciation for the valuable contributions made by Mr. Patel during his tenure as Chief Financial Officer.

New CFO Appointment

Based on recommendations from the Nomination and Remuneration Committee and approval by the Audit Committee, the Board has appointed Mr. Vikas Badgujar as the new Chief Financial Officer, effective January 1, 2026.

Mr. Badgujar brings over 20 years of experience in financial management, ERP-driven finance transformation, manufacturing operations, governance, and audit coordination. He possesses expertise in SAP Business One HANA and holds multiple certifications including Bachelor of Commerce, SAP Business One 10.0 HANA Certified, Microsoft Certified Systems Engineer, and Certified Hardware & Network Professional.

Independent Director Appointment

The company has also appointed Mr. Arpit Tiwari (DIN: 11394258) as an Additional Director (Non-Executive, Independent), effective January 1, 2026, to fill the casual vacancy created by the earlier resignation of Mr. Meet Joshi.

Mr. Tiwari is a qualified Chartered Accountant and seasoned finance professional with extensive experience in auditing, accounting, taxation, and corporate compliance. He has previously worked with M/s S.L. Chhajed & Co. LLP and has handled statutory and internal audits for prominent clients across banking, insurance, manufacturing, government, and media sectors. He holds a Bachelor of Commerce in Economics from BSSS College, Bhopal, and an MBA in Finance and Marketing from TIT College, Bhopal.

Regulatory Compliance

All appointments and resignations comply with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/015 dated November 11, 2024. The company has confirmed that neither the new CFO nor the new Independent Director are related to any existing Directors or Key Managerial Personnel of the company. Mr. Tiwari has also confirmed that he is not debarred from holding the office of director by virtue of any SEBI order or other authority.