Ajwa Projects: Director Loans Made Up 54.39% of Unsecured Loans

Ajwa Projects Limited reported that whole-time director Zarinabegum Mohammad Khan had an unsecured-loan balance of Rs 335.85 lakh at June 30, 2026, equal to 54.39% of total unsecured loans. Her balance rose from Rs 312.05 lakh at March 31, 2026, following Rs 34.50 lakh of loans taken and Rs 10.70 lakh repaid during the period.

How concentrated were Ajwa Projects' unsecured loans?

Ajwa Projects' unsecured loans were concentrated in the Rs 335.85 lakh balance owed to Zarinabegum Khan, its whole-time director, at June 30, 2026. The company disclosed that this balance represented 54.39% of total unsecured loans, making it the largest disclosed related-party unsecured-loan balance in the summary.

Other disclosed related-party balances were materially smaller. Managing director Mohammed Khurshid Alam Khan had a Rs 47.32 lakh unsecured-loan balance, equal to 7.66% of total unsecured loans, while Heena Mohammad Khan had Rs 9.86 lakh, equal to 1.60%. The related-party summary does not identify the lenders behind the remaining unsecured-loan balance.

The disclosure establishes concentration within the unsecured-loan category, rather than across all borrowings. Ajwa Projects' cash-flow statement separately records long-term and short-term borrowing movements for the period ended June 30, 2026, but does not identify the lenders for those categories or link them to the related-party balances.

How did the whole-time director's loan balance change?

Zarinabegum Khan's unsecured-loan balance increased by Rs 23.80 lakh from March 31, 2026 to June 30, 2026. Ajwa Projects reported Rs 34.50 lakh of unsecured loans taken from her and Rs 10.70 lakh repaid to her during the period, which explains the net increase from Rs 312.05 lakh to Rs 335.85 lakh.

Her share of total unsecured loans declined even as her balance rose. Zarinabegum Khan accounted for 60.97% of total unsecured loans at March 31, 2026, compared with 54.39% at June 30, 2026, indicating that the total unsecured-loan category increased by more than her Rs 23.80 lakh balance increase during the period.

The preceding financial year marked the largest reported increase in her closing balance. Her unsecured loan rose from Rs 0.41 lakh at March 31, 2025 to Rs 312.05 lakh at March 31, 2026; Ajwa Projects reported Rs 371.32 lakh taken from her and Rs 59.67 lakh repaid in that year. Her balance was Rs 0.03 lakh at March 31, 2024.

Khurshid Alam Khan's Rs 47.32 lakh balance was unchanged between March 31, 2026 and June 30, 2026, as Ajwa Projects reported no loans taken from or repaid to him in the later period. Heena Mohammad Khan's Rs 9.86 lakh balance was also unchanged over those dates, but was Rs 0.30 lakh lower than the Rs 10.16 lakh recorded at March 31, 2025.

Did director loans operate alongside other financing?

Ajwa Projects' director loans operated alongside separately reported long-term and short-term borrowing movements, although the supplied disclosure does not identify the lenders for those movements. For the period ended June 30, 2026, the cash-flow statement shows Rs 66 lakh of proceeds from long-term borrowing, Rs 24.25 lakh of long-term-borrowing repayment and a Rs 90.34 lakh increase in short-term borrowing.

These movements resulted in net cash generated from financing activities of Rs 102.38 lakh for the period ended June 30, 2026. In the same period, Ajwa Projects recorded net cash used in operating activities of Rs 97.97 lakh and net cash used in investing activities of Rs 15.51 lakh; interest paid was Rs 29.71 lakh.

The full year ended March 31, 2026 had larger financing movements. Ajwa Projects recorded Rs 480 lakh of long-term-borrowing proceeds, Rs 502.37 lakh of repayments and a Rs 478.71 lakh increase in short-term borrowings, producing Rs 323.39 lakh of net financing cash inflow. The period ended June 30, 2026 is shorter than the years ended March 31, so its figures do not represent a full-year comparison.

Ajwa Projects names IndusInd Bank Limited as its banker, but the supplied pages do not attribute any borrowing amount to that bank. The disclosures therefore support the conclusion that related-party unsecured loans existed alongside other financing categories, not a conclusion on the proportion of borrowings supplied by any bank or non-related lender.

What terms and related-party disclosures are available?

Ajwa Projects states that its related-party transactions were undertaken at arm's length and in the ordinary course of business, and says they were certified by statutory auditor D G M S and Co. on October 5, 2026. The company prepared the related-party list under Accounting Standard 18, or AS 18, the standard it cites for identifying related parties and related-party transactions.

The supplied summary does not state an interest rate, maturity date, repayment schedule or security for Zarinabegum Khan's Rs 335.85 lakh loan balance. An unsecured loan is a borrowing presented without security in the related-party schedule. The absence of lender-specific terms means the disclosure does not establish the cost, duration or future availability of this funding.

The related-party schedule also separates financing balances from operating liabilities. At June 30, 2026, Zarinabegum Khan had Rs 4.93 lakh of remuneration payable, or 3.02% of total expenses payable, while Khurshid Alam Khan had Rs 8.10 lakh payable, or 4.96%. M K Enterprises, described as a directors' proprietorship, had Rs 1.71 lakh of rent payable.

Zarinabegum Khan received Rs 4.50 lakh of directors' remuneration in the period ended June 30, 2026, equal to 1.09% of Ajwa Projects' employee-benefit expenses. That remuneration is separately classified from her Rs 335.85 lakh unsecured-loan closing balance, so the two disclosed amounts should not be combined as one transaction type.

Conclusion

Ajwa Projects' June 30, 2026 disclosures show that its whole-time director was a major lender within the unsecured-loan category, with a Rs 335.85 lakh balance representing 54.39% of the total. The balance increased during the period, while the company also reported net financing cash inflow of Rs 102.38 lakh from its broader financing activities.

The next relevant update is whether Ajwa Projects reports further loans taken from, or repayments to, Zarinabegum Khan and whether her 54.39% share changes. The supplied material discloses no plan to reduce the balance and no interest rate, maturity or repayment schedule, leaving the funding terms and their continuation unresolved.