Galaxy Agrico Exports Ltd. has taken a significant step towards enhancing transparency and investor protection for its forthcoming Rights Issue. The company's Board of Directors, in a meeting held on December 3, 2025, approved several key measures to ensure proper oversight and utilization of the issue proceeds.

Appointment of Monitoring Agency

Despite the proposed Rights Issue size being below ₹50 crores, Galaxy Agrico Exports has decided to appoint a SEBI-registered Credit Rating Agency as the Monitoring Agency. This agency will be responsible for overseeing the utilization of proceeds from the Rights Issue, demonstrating the company's commitment to transparency.

Key Decisions

Utilization of Proceeds

The Board has emphasized that the entire net proceeds from the Rights Issue will be utilized solely for the purposes stated under the Objects of the Issue. To further reinforce this commitment, the Board has authorized the Chief Financial Officer (CFO) and Company Secretary to issue certificates confirming the proper utilization of funds.

Certification Process

The CFO and Company Secretary have been empowered to submit certificates to BSE Ltd., confirming that the Rights Issue proceeds will be strictly used in line with the objectives stated in the Draft Letter of Offer. This measure adds an additional layer of assurance for investors regarding the appropriate use of funds.

Implications for Investors

These decisions by Galaxy Agrico Exports reflect a proactive approach to corporate governance and investor protection. By voluntarily appointing a Monitoring Agency and implementing a certification process, the company is demonstrating its commitment to transparency, which could potentially boost investor confidence in the upcoming Rights Issue.

Investors considering participation in the Rights Issue may view these measures positively, as they provide additional safeguards and oversight for the utilization of issue proceeds.

As the Rights Issue progresses, shareholders and potential investors should stay tuned for further updates, including the release of the Draft Letter of Offer, which will contain detailed information about the issue objectives and terms.

Galaxy Agrico Exports Limited , a company listed on the BSE, has reported its unaudited financial results for the quarter and half-year ended September 30, 2025, revealing a significant downturn in performance and raising concerns about its asset management practices.

Financial Performance

The company's financial results paint a challenging picture:

Galaxy Agrico Exports reported a net loss of ₹22.30 lakhs for the quarter ended September 30, 2025, compared to a profit of ₹9.47 lakhs in the corresponding quarter of the previous year. For the half-year, the company's losses deepened to ₹32.79 lakhs, in contrast to a profit of ₹14.21 lakhs in the same period last year.

The company's revenue from operations also saw a slight decline, dropping from ₹100.12 lakhs in Q2 FY2025 to ₹98.11 lakhs in Q2 FY2026.

Auditor's Concerns

In their limited review report, the company's auditors, H.B. Kalaria & Associates, highlighted significant concerns:

1. Fixed Asset Management: The company has not conducted an inspection of its fixed assets and has not maintained a register of fixed assets during the period under review.

2. Inventory Management: The company has not carried out an inspection of its inventories during the review period.

The auditors stated that due to these issues, they were unable to obtain sufficient evidence regarding the existence of fixed assets and inventories. Consequently, they could not provide a basis for a review opinion on these aspects of the financial statements.

Management Response

The financial results were approved by the Board of Directors in their meeting held on November 11, 2025. However, the company's management has not provided any specific comments addressing the auditors' concerns in the available information.

Investor Implications

These results and the auditors' concerns raise several red flags for investors:

1. The shift from profit to loss indicates a significant deterioration in the company's financial performance.
2. The lack of proper fixed asset and inventory management practices could potentially lead to misstatement of the company's assets and overall financial position.
3. The inability of auditors to verify key assets may impact the reliability of the financial statements.

Investors and stakeholders may want to closely monitor the company's response to these issues and any steps taken to address the auditors' concerns in the coming quarters.