Please note that the paid-up share capital of the Company is Rs. 59,75,000/- Further the Net worth of the Company is (56,42,000) thereby not exceeding the prescribed limit under the regulation. ....
Awaiting price reaction for this filing.
Shah Foods Ltd has informed BSE that it qualifies for an exemption from submitting related party transaction disclosures under SEBI LODR Regulation 23(9). The company's paid-up equity share capital stands at Rs. 59.75 lakhs, well below the Rs. 10 crore threshold. More concerning is that the company's net worth is negative at Rs. (56.42 lakhs) as on 31 March 2025, which is also below the Rs. 25 crore threshold. Because both criteria are met, the company is not required to comply with related party disclosure norms. The letter is signed by the Company Secretary and Compliance Officer.
This is a routine regulatory filing, but the negative net worth of Rs. 56.42 lakhs highlights significant financial weakness and erosion of shareholder equity. Investors should view this as a caution flag regarding the company's financial health, even though the filing itself is procedural in nature.