Shivamshree Businesses Limited Reports Financial Results for Q3 FY25

Board Approves Fundraising and Capital Expansion Plans​

Ahmedabad, January 30, 2025 – Shivamshree Businesses Limited (BSE: SBL) has announced its unaudited financial results for the quarter and nine months ended December 31, 2024. The Board also approved key strategic measures, including an increase in authorized share capital, preferential allotment of equity shares, and amendments to the company’s Memorandum of Association.

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Financial Performance Overview (Q3 FY25)​

The company reported revenue from operations of ₹129.42 lakh, significantly up from ₹24.02 lakh in the previous quarter but lower than ₹764.49 lakh in Q3 FY24. Other income stood at ₹0.27 lakh, contributing to a total income of ₹129.69 lakh.

Key Financial Metrics (₹ in lakh)​

The company posted a net loss of ₹12.73 lakh for the quarter, as against a profit of ₹32.14 lakh in the same period last year, reflecting a decline in operational efficiency and revenue generation.

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Key Approvals from the Board Meeting​

1. Increase in Authorized Share Capital​

The Board approved an increase in authorized share capital from ₹5 crore (5 crore equity shares of ₹1 each) to ₹9 crore (9 crore equity shares of ₹1 each). This move is aimed at facilitating future fundraising efforts.

2. Preferential Allotment of Equity Shares​

The company has approved the issuance of 3 crore equity shares at ₹1.50 per share, aggregating to ₹4.5 crore. The preferential allotment is in accordance with SEBI (ICDR) Regulations and will be subject to shareholder approval at the upcoming EGM.
The major allottees include:

• Prafulbhai Parshottambhai Bavishiya – 32 lakh shares (Post-issue holding: 5.33%)
• Shaileshbhai Parshottambhai Bavishiya – 32 lakh shares (Post-issue holding: 4.90%)
• Shivam Greentech Pvt Ltd – 78 lakh shares (Post-issue holding: 10.31%)

3. Alteration of Memorandum & Articles of Association​

The company is set to amend the Object Clause in its MOA to include additional business activities related to industrial packaging products such as plastic bags, Leno bags, Bopp bags, and HDPE fabric.

4. Convening of Extraordinary General Meeting (EGM)​

The Board has scheduled an EGM on March 1, 2025, to seek shareholder approval for the proposed preferential issue and amendments.

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Auditor’s Review & Observations​

Independent auditors M A A K & Associates conducted a limited review and highlighted two key concerns:

1. Unverified Closing Stock – The closing stock calculation was certified by management without supporting documentation.
2. Lack of Audit Trail – The accounting software used by the company does not maintain an edit log feature, raising concerns about record-keeping transparency.

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Strategic Outlook​

The company’s move to raise capital and expand its business scope signals an aggressive growth strategy. However, the decline in revenue and profitability, coupled with auditor concerns over stock valuation and record maintenance, could pose challenges. Investors will closely monitor the EGM outcome and subsequent fundraising initiatives for further direction.

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Stock Market Impact: Shares of Shivamshree Businesses Limited (BSE: SBL) may witness volatility as investors react to the fundraising plans and financial results.
Next Steps:

• EGM on March 1, 2025
• Implementation of new business verticals in industrial packaging

Conclusion​

While the company is taking steps to bolster its financial position through capital expansion, its declining revenue and operational losses raise concerns. Investors will seek clarity on the execution of these strategic plans in the upcoming quarters.