Mishtann Foods Limited, a player in the Indian food industry, has released its financial results for the quarter ended September 30, revealing a complex financial situation amidst significant regulatory and audit challenges.

Financial Performance

The company reported standalone revenue of Rs 69.12 lakhs and consolidated revenue of Rs 38,608.81 lakhs for the quarter. While this represents an increase from the previous year's consolidated revenue of Rs 3,420.00 lakhs, the company's profitability has declined.

Regulatory Challenges

Mishtann Foods faces serious regulatory issues, including a SEBI show cause notice dated December 5. The notice alleges:

1. Fictitious sales and purchase transactions from FY2017-18 to FY2023-24
2. Misutilization of rights issue proceeds worth Rs 4,990.00 lakhs

The company's management has denied all SEBI allegations and is pursuing legal remedies.

Audit Concerns

The auditors issued qualified opinions on both standalone and consolidated results, citing multiple concerns:

1. High trade receivables of Rs 49,585.48 lakhs (97% of total assets)
2. Lack of audit trail software implementation
3. No provision for expected credit losses
4. GST demand of Rs 20,684.38 lakhs
5. Unpaid income tax provisions of Rs 5,227.67 lakhs

Corporate Governance Developments

Mishtann Foods announced several corporate governance changes:

1. Appointment of J.M. Patel Bros as Tax Auditor
2. Appointment of Rajesh Chinubhai Sutaria as Additional Independent Director for a 5-year term, subject to shareholder approval
3. Reconstitution of the Audit Committee with Ms. Rainy Ramesh Singhi as Chairperson, and Mr. Ashish Agarwal and Mr. Kush Jigenbhai Shah as members

Market Implications

The financial results, regulatory challenges, and audit concerns present a complex picture for Mishtann Foods. The company's ability to address these issues while maintaining its operations may be crucial for its future performance and market position.

Investors and stakeholders may need to closely monitor the company's responses to the SEBI allegations, its efforts to resolve audit concerns, and its overall financial management in the coming quarters.

Mishtann Foods Ltd , a prominent player in the agro-commodities and Basmati Rice processing sector, has announced significant changes to its leadership structure and board committees. The company's Board of Directors approved several key decisions during a meeting held on September 24, 2025.

Managing Director Reappointment

Hiteshkumar Gaurishankar Patel has been reappointed as the Managing Director of Mishtann Foods for another five-year term, extending from September 24, 2025, to September 23, 2030. This reappointment is subject to shareholder approval at the forthcoming General Meeting.

Patel, who holds a substantial 43.48% stake in the company with 46,85,71,027 equity shares, brings nearly two decades of experience in agro-commodities trading and Basmati Rice processing. His journey from a trader to establishing a processing facility for Basmati Rice has been instrumental in the company's growth and profitability.

Board Committee Restructuring

The Board has approved the reconstitution of several key committees following the resignation of Independent Director Bhumi Jayantkumar Gor. The newly restructured committees are as follows:

Audit Committee

• Chairperson: Ashish Agarwal (Independent Director)
• Members: Kush Jigenbhai Shah and Rainy Ramesh Singhi (both Independent Directors)

Nomination and Remuneration Committee

• Chairperson: Rainy Ramesh Singhi (Independent Director)
• Members: Ashish Agarwal and Kush Jigenbhai Shah (both Independent Directors)

Stakeholders Relationship Committee

• Chairperson: Rainy Ramesh Singhi (Independent Director)
• Members: Ashish Agarwal and Kush Jigenbhai Shah (both Independent Directors)

Risk Management Committee

• Chairperson: Hiteshkumar Gaurishankar Patel (Managing Director)
• Members: Rainy Ramesh Singhi and Kush Jigenbhai Shah (both Independent Directors)

Corporate Social Responsibility Committee

• Chairperson: Kush Jigenbhai Shah (Independent Director)
• Members: Ashish Agarwal and Rainy Ramesh Singhi (both Independent Directors)

Director Resignation

The Board noted the resignation of Bhumi Jayantkumar Gor as an Independent Director, effective from the close of business hours on September 24, 2025. Gor cited personal and professional commitments as reasons for her departure. Consequently, she has stepped down from her roles as Chairperson of the Audit Committee, Nomination and Remuneration Committee, Stakeholders Relationship Committee, and Corporate Social Responsibility Committee, as well as her membership in the Risk Management Committee.

The company has affirmed that these changes are in compliance with the relevant SEBI regulations and BSE circulars. The board meeting, which commenced at 4:30 PM and concluded at 5:30 PM, marks a significant shift in Mishtann Foods' corporate governance structure as it prepares for the next phase of its growth journey.