Shah Foods Ltd — Important, 14-08-2026: Company Update

Shah Foods Limited's Monitoring Agency Report on the Rs. 75.16 crore preferential equity issue highlights a 43% deviation in fund utilization. Notably, Rs. 11.20 crore was used for related party payments, including trade purchases, loan repayment, and interest, without specific shareholder approval. Additionally, Rs. 16.20 crore and Rs. 4.83 crore of unutilized funds were extended as a loan to an NBFC, an action deemed not in line with market regulations. The report also identified discrepancies between auditor-certified and actual fund usage.