NCLT Proceedings

The Hon'ble National Company Law Tribunal (NCLT), Mumbai Bench (Court IV) heard the company's petition for 'Scheme of Reduction of Share Capital' on October 14, 2026, and admitted the petition for hearing. The next date of hearing is scheduled for January 21, 2027.

Capital Reduction Scheme Details

The scheme involves:

  • Adjustment of accumulated losses of ₹52,28,37,029 (Rupees Fifty-Two Crores Twenty-Eight Lakhs Thirty-Seven Thousand Twenty-Nine)
  • First utilization of Securities Premium Reserve amounting to ₹23,28,61,241 (Rupees Twenty-Three Crores Twenty-Eight Lakhs Sixty-One Thousand Two Hundred and Forty-One)
  • Reduction of issued, subscribed and paid-up equity share capital from ₹32,21,95,320 (Rupees Thirty-Two Crore Twenty-One Lakh Ninety-Five Thousand Three Hundred Twenty) to ₹3,22,19,532 (Rupees Three Crore Twenty-Two Lakh Nineteen Thousand Five Hundred and Thirty-Two)
  • Reduction of equity share face value from ₹10 each to ₹1 each
  • Reduction of entire issued and paid-up Preference Share Capital of ₹1,10,00,00,000 (Rupees One Hundred Ten Crores) divided into 1,10,00,000 6.5% Non-Cumulative Redeemable Preference Shares of ₹100 each
  • Preference shareholder consideration to be discharged when adequate funds become available, treated as unsecured non-interest bearing loan until payment

Financial Rationale

As per limited reviewed financial statements for six months ended September 30, 2025, accumulated losses stand at ₹2,78,39,19,643 (Rupees Two Hundred Seventy-Eight Crores Thirty-Nine Lakhs Nineteen Thousand Six Hundred and Forty-Three). The company has no major business operations and is evaluating new business opportunities including real estate-related activities.

Shareholding Structure

As of filing date:

  • Promoter and Promoter Group: 21 shareholders holding 1,93,15,802 shares
  • Public: 14,815 shareholders holding 1,29,03,730 shares
  • Total: 14,836 shareholders holding 3,22,19,532 shares

Capital Structure as on March 31, 2026

Authorized Share Capital: ₹1,68,00,00,000

  • 5,80,00,000 Equity Shares of ₹10 each: ₹58,00,00,000
  • 1,10,00,000 6.5% Non-cumulative Redeemable preference shares of ₹100 each: ₹1,10,00,00,000

Issued, Subscribed and Paid-Up Share Capital: ₹1,42,21,95,320

  • 3,22,19,532 Equity Shares of ₹10 each: ₹32,21,95,320
  • 1,10,00,000 6.5% Non-Cumulative Redeemable Preference Shares of ₹100 each: ₹1,10,00,00,000

Creditor Details

  • 1 Secured Creditor: ₹24,50,00,000 as on June 29, 2026
  • 16 Unsecured Creditors: ₹42,27,84,309 as on June 29, 2026

Regulatory Compliance Status

The NCLT order is interim in nature and contains procedural directions for issuance of notices and publication of newspaper advertisements. The company clarified this does not constitute a material development in relation to the Scheme. The company inadvertently submitted the intimation under 'Announcement' instead of 'General Update' category under Regulation 30 of SEBI LODR Regulations.

Next Steps

  • Serve notices to secured and unsecured creditors within specified timeline
  • Serve notices to regulatory authorities including Central Government, Registrar of Companies, SEBI, BSE, NSE, and Income Tax authorities
  • Publish notice in Business Standard (English) and Navshakti (Marathi) newspapers
  • File affidavit confirming dispatch and publication of notices within 7 days
  • Next hearing scheduled for January 21, 2027

Approval History

  • Board approval: December 23, 2025
  • Equity shareholder approval via Postal Ballot: July 2, 2026
  • Preference shareholder approval: June 19, 2026

Accounting Compliance

Statutory Auditors DS MR and Co provided certificate dated December 23, 2025, confirming accounting treatment conformity with accounting standards under Section 133 of Companies Act, 2013.