SRM Energy Limited (ISIN: INE173J01018) announced that its shareholders have overwhelmingly approved two significant resolutions through a postal ballot voting process that concluded on August 23, 2025. The resolutions, which garnered strong support from the voting shareholders, pave the way for substantial changes in the company's structure and operations.

Key Resolutions Passed

1. Asset Sale Approval: The first resolution, passed as a special resolution, authorizes the company to sell or dispose of assets by transferring equity shares in its wholly-owned subsidiary, SRM Energy Tamilnadu Private Limited, to its holding company, Spice Energy Private Limited.

2. Related Party Transactions: The second resolution, an ordinary resolution, approves proposed related party transactions with Spice Energy Private Limited, the holding company of SRM Energy Limited.

Voting Results

Both resolutions received overwhelming support from the participating shareholders:

It's noteworthy that Spice Energy Private Limited, being an interested party, did not participate in the voting process for either resolution.

Voting Process and Participation

The postal ballot was conducted entirely through remote e-voting, in line with regulatory guidelines. Key details of the voting process include:

• Total number of shareholders on the record date (July 18, 2025): 9,348
• Number of shareholders who participated in voting: 82
• Total votes cast: 14,348 shares (representing 0.16% of the total share capital)

Next Steps

The Board of Directors of SRM Energy Limited is scheduled to meet on August 26, 2025, to discuss further actions based on the approved resolutions. This meeting is expected to chart the course for implementing the shareholders' decisions.

Company Background

SRM Energy Limited has a total share capital of 90,60,000 equity shares with a face value of Rs. 10 each. The company's registered office is located in New Delhi.

The strong shareholder support for these resolutions signals a significant shift in SRM Energy's corporate strategy, potentially impacting its operational structure and related party dynamics. Investors and stakeholders will be keenly watching the outcomes of the upcoming board meeting for further clarity on the company's future direction.

SRM Energy Limited , a company in the power generation sector, has reported a significant standalone net loss of Rs 139.70 crore for the quarter ended June 30. This marks a substantial increase from the Rs 8.70 lakh loss reported in the previous quarter.

Financial Performance

The company's financial results paint a challenging picture:

Operational Challenges

SRM Energy is facing severe operational challenges:

• No business operations and continuous cash losses
• Fully eroded net worth with accumulated losses
• Current liabilities exceeding current assets

Impairment and Asset Held for Sale

The company has made a significant impairment provision of Rs 131.00 lakh on its investment in its wholly-owned subsidiary, SRM Energy Tamilnadu Private Limited (SETPL). This investment has been classified as an asset held for sale at Rs 1.00 lakh, reflecting the proposed sale to the parent company, Spice Energy Private Limited.

Subsidiary Issues

SETPL, the wholly-owned subsidiary, is facing its own set of challenges:

• Approached NCLT for insolvency resolution
• Received an attachment order from SEBI for a Rs 4,326.56 crore loan amount
• Sold a portion of land at a loss of Rs 10.16 lakh

Going Concern Uncertainty

The statutory auditors have issued a qualified conclusion, highlighting material uncertainty regarding the company's ability to continue as a going concern. The management expects support from the parent company to meet expenses if the company is unable to do so on its own.

Employee Salaries

The company has unpaid employee salaries amounting to Rs 13.98 lakh as of June 30.

Future Outlook

With no current business operations and mounting financial challenges, SRM Energy's future remains uncertain. The company's ability to turn around its operations and financial position will likely depend on the success of its restructuring efforts and the support from its parent company.