Key Quantitative Figures

  • Authorized Share Capital: ₹12,00,00,000 (1,20,00,000 equity shares of ₹10 each)
  • Current Paid-up Capital: ₹7,94,14,000 (79,41,400 equity shares of ₹10 each)
  • Proposed Reduced Capital: ₹1,98,53,500 (19,85,350 equity shares of ₹10 each)
  • Capital Reduction Amount: ₹5,95,60,500 (reduction from share capital)
  • Securities Premium Account: ₹6,47,05,000 (to be fully utilized)
  • Total Reduction Amount: ₹12,42,65,500
  • Accumulated Losses (31.03.2026): ₹12,44,96,978
  • FY 2025-26 Revenue: ₹21.25 lakh
  • FY 2025-26 Net Loss: ₹4.19 lakh
  • Net Worth (31.03.2026): ₹227.37 lakh
  • Current Ratio: 1.36
  • EPS (FY 2025-26): ₹(0.05)

Dates of Action

  • AGM Date: Saturday, 8th August, 2026 at 11:00 AM
  • E-voting Period: 5th August 2026 (9:00 AM) to 7th August 2026 (5:00 PM)
  • Cut-off Date for Voting: Friday, 31st July 2026
  • Board Meeting Dates: Five meetings held during FY 2025-26
  • Auditor's Report Date: 27th May, 2026

Parties Involved

  • Statutory Auditors: M/s. M N Rao & Associates, Chartered Accountants (Firm Reg. No. 005386S)
  • Internal Auditors: M/s. Sarada Manasa and Associates, Chartered Accountants
  • Share Transfer Agents: M/s. XL Softech Systems Ltd.
  • Bankers: Andhra Bank, Mallapur, Hyderabad
  • Scrutinizer: Mr. Jineshwar Kumar Sankhala, Practicing Company Secretary
  • Board of Directors:
  • Mr. Venkata Garapati Siva Sundara Prasad (Chairman & Whole Time Director)
  • Mrs. Lakshmi VVV Garapati (Managing Director)
  • Mr. Venu Garapati (Non-Executive Director)
  • Mr. Neralla Seshagiri Rao (Independent Director)
  • Mr. Alapati Venkata Narasimha Rao (Independent Director)
  • Mr. Naga Mohan Babu Mangalapurapu (Independent Director)
  • Mr. Sahu Garapati (CFO)
  • Ms. Karishma Hemraj Jain (Company Secretary)

Scheme of Capital Reduction Details

Rationale and Purpose

The company has accumulated losses of ₹12.45 crore as of 31.03.2026 due to adverse commercial and market conditions, resulting in significant erosion of net worth. The capital restructuring aims to rationalize the capital structure by setting off accumulated losses against paid-up equity share capital and securities premium account.

Financial Impact

  • Pre-reduction Capital: ₹7,94,14,000 (79,41,400 shares)
  • Shares to be Cancelled: 59,56,050 equity shares (75% reduction)
  • Capital Reduction Amount: ₹5,95,60,500
  • Securities Premium Utilization: ₹6,47,05,000 (full amount)
  • Total Amount for Loss Write-off: ₹12,42,65,500
  • Post-reduction Capital: ₹1,98,53,500 (19,85,350 shares)
  • Residual Accumulated Losses: ₹2,31,478

Shareholder Impact

  • Reduction will be effected on proportionate basis (4:1 ratio)
  • For every 4 shares held, shareholders will retain 1 share
  • No change in shareholding pattern percentages
  • Promoter Holding: 29.67% (pre and post reduction)
  • Public Holding: 70.33% (pre and post reduction)

Implementation Process

  • Subject to NCLT Hyderabad approval
  • Record Date to be fixed within 90 days of effective date
  • Fractional shares will be consolidated and sold by trustee
  • Existing share certificates will be deemed cancelled
  • Demat accounts will be adjusted through depositories
  • Listing status on BSE to continue

AGM Agenda Items

Ordinary Business

1. Adoption of audited financial statements for FY 2025-26

2. Reappointment of Mrs. Lakshmi VVV Garapati (DIN: 00394662) as Director retiring by rotation

3. Appointment of M/s. M N Rao & Associates as Statutory Auditors for second term of 5 years

Special Business

4. Reappointment of Mr. Neralla Seshagiri Rao (DIN: 09299267) as Independent Director for second term of 5 years

5. Reappointment of Mr. Alapati Venkata Narasimha Rao (DIN: 09300872) as Independent Director for second term of 5 years

6. Approval of Scheme of Reduction of Share Capital

Financial Performance Summary

FY 2025-26 Results

  • Revenue from Operations: ₹21.25 lakh
  • Other Income: Nil
  • Total Income: ₹21.25 lakh
  • Employee Benefit Expense: ₹7.60 lakh
  • Depreciation: ₹3.54 lakh
  • Other Expenses: ₹9.95 lakh
  • Total Expenses: ₹21.09 lakh
  • Profit Before Tax: ₹0.16 lakh
  • Tax Expense: ₹4.35 lakh (deferred tax)
  • Net Loss: ₹4.19 lakh

Historical Performance (₹ in Lakhs)

| Financial Year | Profit/(Loss) | Accumulated Losses | Net Worth |

| 2020-21 | 53.85 | (1,544.95) | (72.61) |

| 2021-22 | (17.49) | (1,562.43) | (90.09) |

| 2022-23 | 385.40 | (1,177.03) | 295.31 |

| 2023-24 | (26.11) | (1,203.14) | 269.20 |

| 2024-25 | (37.64) | (1,240.78) | 231.56 |

| 2025-26 | (04.19) | (1,244.97) | 227.37 |

Corporate Governance

  • Board Committees:
  • Audit Committee: Mr. Neralla Seshagiri Rao (Chairman)
  • Stakeholders Relationship Committee: Mr. Neralla Seshagiri Rao (Chairman)
  • Nomination and Remuneration Committee: Mr. Neralla Seshagiri Rao (Chairman)
  • Board Meetings: 5 meetings held during the year
  • Director Attendance: Mrs. Lakshmi VVV Garapati attended 5 out of 5 meetings
  • Whistleblower Policy: In place, no complaints received during the year
  • Related Party Transactions: All transactions at arm's length basis

Additional Information

  • No Subsidiaries/Joint Ventures/Associate Companies
  • No Deposits accepted under Sections 73-76 of Companies Act, 2013
  • No Material Orders from Regulators/Courts
  • No Frauds reported by Auditors

Voting Arrangements

  • E-voting through CDSL/NSDL platforms for demat shareholders
  • Physical voting facility at AGM venue
  • Scrutinizer: Mr. Jineshwar Kumar Sankhala, Practicing Company Secretary
  • Results to be declared within 2 working days of AGM conclusion