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

Shah Foods Limited received a Monitoring Agency Report on its preferential equity issue, highlighting significant deviations in fund utilization for the quarter ended March 31, 2026. The report notes a 36.46% deviation. A subsidiary made related party payments of Rs. 11.20 Cr, which were not detailed in shareholder approval. Additionally, Rs. 16.20 Cr of unutilized funds were given as a loan to an NBFC, inconsistent with guidelines. The report also found discrepancies between actual fund utilization and the auditor's certificate, raising concerns about financial transparency and adherence to approved fund use.