SAL Steel Ltd has completed a comprehensive board restructuring on December 23, 2025, with formal regulatory filings confirming both new director appointments and resignations as part of the ongoing acquisition process by Sree Metaliks Limited. The company has submitted all required documentation under SEBI regulations to BSE and NSE.

Regulatory Compliance and Documentation

The company has filed comprehensive intimations under Regulation 30 of SEBI (LODR) Regulations, 2015 with both stock exchanges. The filings include detailed disclosures for director appointments and resignations, ensuring full regulatory compliance during the ownership transition.

New Director Appointments

The board approved three strategic appointments, all effective from December 23, 2025, subject to shareholder approval through postal ballot:

Mahesh Kumar Agarwal brings over 40 years of experience in the Mining and Steel Industry. As a science graduate, he has demonstrated extensive management expertise and visionary leadership. Kaustubh Agarwal, a mining engineer with over 5 years of experience, represents the new generation of leadership and is the son of Mahesh Kumar Agarwal. Hiren S. Mahadevia joins as an Independent Director, bringing substantial expertise as a Company Secretary and ICSI member since 1986, with over 35 years of finance and legal management experience.

Formal Resignation Process

Rajendrakumar Shah (DIN: 00020904) formally submitted his resignation from the position of Chairman, Non-Executive, Non-Independent Director through a detailed resignation letter. The resignation was specifically attributed to the Open Offer acquisition by Sree Metaliks Limited.

In his resignation letter, Shah confirmed there were no other material reasons for his departure beyond the acquisition. He expressed gratitude for his tenure and wished the company success. Additionally, Mrinal Sinha (DIN: 09482143) resigned as Whole Time Director due to personal and unavoidable circumstances.

Governance Authorization

The board has authorized Kaustubh Agarwal, designated as Whole Time Director, to determine the materiality of events and make disclosures to stock exchanges. The Key Managerial Personnel now include Kaustubh Agarwal as Whole Time Director and Radhika P. Soni as Company Secretary and Compliance Officer, who signed the regulatory filings.

These comprehensive board changes are pursuant to the Share Purchase Agreement dated September 04, 2025, with the Open Offer completing on December 11, 2025, marking SAL Steel's transition under Sree Metaliks Limited's ownership.

SAL Steel Limited , a key player in the ferro alloys and sponge iron manufacturing sector, has reported a net profit of Rs 3.73 crore for the quarter ended September 30, 2023. This marks a significant turnaround from the previous quarter's loss of Rs 9.68 crore. However, the company's financial results come with notable auditor qualifications and amid a major ownership transition.

Financial Performance

The company's financial results for the quarter show:

The total revenue for the quarter stood at Rs 65.73 crore, a significant decrease from Rs 127.68 crore in the previous quarter. Despite the revenue decline, the company managed to turn a profit, largely due to a substantial reduction in expenses.

Auditor Qualifications

The company's auditors, Parikh & Majmudar, have issued a qualified opinion on the financial results, highlighting two key issues:

1. Unprovided Electricity Duty: The company has not made provisions for electricity duty amounting to Rs 12.69 lakh for the quarter. If accounted for, this would reduce the reported profit by the same amount.

2. Capital Work in Progress Impairment: The auditors noted that the company has not impaired its entire Capital Work in Progress. This non-impairment amounts to Rs 100.94 lakh, which, if recognized, would further reduce the reported profit.

These qualifications suggest that the actual financial position of the company may be less favorable than the reported figures indicate.

Ownership Transition

A significant development is underway regarding the company's ownership structure. The current promoters, Shah Alloys Limited and SAL Care Private Limited, have entered into a Share Purchase Agreement with Sree Metaliks Limited. This agreement involves:

• The sale of 4,29,59,495 equity shares and 48,00,000 share warrants held by the current promoters to Sree Metaliks Limited.
• A separate Share Subscription Agreement for Sree Metaliks to subscribe to 1,92,50,000 fresh equity shares and 3,57,50,000 share warrants for Rs 99 crore.

This transition is currently in process, with an open offer to public shareholders underway in compliance with SEBI regulations.

Market Implications

The company's return to profitability, despite reduced revenue, may be viewed positively by investors. However, the auditor qualifications raise concerns about the accuracy of the reported financial position. The ongoing ownership transition adds another layer of complexity to the company's future prospects.

Investors and market analysts will likely keep a close watch on how the new ownership, once finalized, might influence the company's strategic direction and financial management practices. The resolution of the issues highlighted by the auditors will also be crucial for building investor confidence in the coming quarters.

As SAL Steel navigates through these financial and structural changes, stakeholders will be keen to see how the company addresses the auditors' concerns and leverages the potential synergies from the new ownership structure to drive sustainable growth and profitability.