Sword-Edge Commercials Limited held a Board of Directors meeting on February 23, 2026, approving several critical resolutions related to the company's postal ballot process. The meeting, conducted under Regulation 30 of SEBI (Listing Obligations & Disclosure Requirements) 2015, addressed key procedural matters for shareholder engagement through electronic voting mechanisms.

Postal Ballot Approval and Electronic Distribution

The board approved the draft postal ballot notice that will be circulated to shareholders for approval on various business matters. The notice will be distributed exclusively through electronic mode to all shareholders whose names appear on the Register of Members as of the designated cut-off date.

Voting Timeline and Eligibility Framework

The board established a comprehensive timeline for the postal ballot process, setting clear parameters for shareholder participation. The cut-off date for determining eligible members has been fixed as Friday, February 20, 2026.

Shareholders whose names appear on the register as of the cut-off date will be entitled to receive the postal ballot notice and cast their votes through the remote e-voting facility.

Scrutinizer Appointment

To ensure transparency and fairness in the e-voting process, the board appointed M/s. Ashok Patel & Associates, Practicing Company Secretary, as the official scrutinizer. This appointment demonstrates the company's commitment to maintaining proper governance standards during the postal ballot proceedings.

Meeting Details

The board meeting was efficiently conducted within a 30-minute timeframe, commencing at 04:30 p.m. and concluding at 05:00 p.m. on February 23, 2026. The meeting outcomes were formally communicated to BSE Limited under the company's scrip code 512359 and scrip ID SWORDEDGE, ensuring compliance with regulatory disclosure requirements.

Sword-Edge Commercials Limited has filed its Statement on Impact of Audit Qualifications for the financial year ended March 31, 2025, revealing multiple concerns raised by its statutory auditor regarding various aspects of the company's financial reporting and compliance. The statement, submitted under Regulations 33 and 52 of SEBI (LODR) Regulations 2015, outlines six distinct audit qualifications that highlight significant documentation and compliance issues.

Financial Performance Overview

Despite the audit qualifications, the company's financial figures remained unchanged between the audited and adjusted amounts, indicating that the qualifications did not result in numerical adjustments to the financial statements.

Major Audit Qualifications

Documentation Issues with Financial Assets: The auditor expressed concerns over inadequate documentation for current financial assets' loans and advances worth ₹1369.81 lakhs. The qualification states there were no proper documents or supporting evidence to form an opinion on these loans and advances and their relevant impact on the profit and loss account.

Investment Documentation Concerns: A separate qualification addressed non-current financial assets' investments valued at ₹1960.26 lakhs, where the auditor noted insufficient supporting evidence to draw conclusions about these investments and their impact on financial statements.

Trade Balances Confirmation Issues: The auditor highlighted that some trade payables, trade receivables, and other financial liabilities were subject to confirmation, with their relevant impact on the profit and loss account and balance sheet being unascertainable.

Compliance and Regulatory Issues

Outstanding Statutory Dues: The company faces a material concern regarding non-payment of statutory obligations. As of March 31, 2025, Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) payments worth ₹1.02 lakhs remained outstanding, creating potential legal and financial repercussions.

Trading Suspension: The auditor drew attention to the suspension of the company's equity shares trading on BSE and NSE with effect from February 13, 2025, which continued as of the audit report date. Management attributed this suspension to non-compliance with SEBI (LODR) Regulations 2015 and non-payment of annual listing fees to BSE Limited.

Accounting Software Non-Compliance: The company was found non-compliant with Rule 3(1) of the Companies (Accounts) Rules, 2014, as it was not maintaining books of accounts in software with Edit Log feature, limiting the auditor's ability to independently verify changes to financial records.

Management Response

The company's management provided explanations for each qualification, stating that loans and advances were made under proper board authority as per Section 186 of the Companies Act, 2013. For the outstanding statutory dues, management assured imminent compliance and payment. Regarding the trading suspension, the company indicated it was in the process of addressing the compliance issues. For the accounting software matter, management stated that software development was underway to ensure future compliance.

The statement was signed by key officials including Chhayaben Parmar (Chairman and Director of Audit Committee), CA Rajendra Desai (Statutory Auditor), Karamjeet Sidhu (Managing Director), and Sakshi Jhala (CFO), and was dated August 14, 2025, from Mumbai.