Key Quantitative Figures

  • Spinning unit assets book value: ₹44.26 crore (as of March 31, 2026)
  • Outstanding borrowings to be repaid: ₹78.21 crore
  • Spinning unit represented 45.27% of company's net worth
  • Spinning unit generated 85.81% of total income during FY 2025-26

Dates of Action

  • Cut-off date for voting eligibility: October 23, 2026
  • E-voting commencement: October 31, 2026 at 9:00 AM IST
  • E-voting conclusion: November 29, 2026 at 5:00 PM IST
  • Results declaration: November 30, 2026
  • Resolution deemed passed: November 29, 2026 at 5:00 PM IST if approved

Parties Involved

  • Lenders: Bank of Baroda, LIC Housing Finance Limited, Unsecured Lenders
  • Scrutinizer: Mr. Sachin Bidkar (Practicing Company Secretary)
  • E-voting service provider: Central Depository Services (India) Ltd (CDSL)
  • Stock exchange: BSE Limited (Scrip Code: 532140)

Resolution Details

Item No. 1: Sale of Spinning Unit Assets

  • Special resolution to sell spinning unit undertaking including land at Gat No 347/1, 347/2, 347/3, 355 and 357 (37 acres), buildings, and plant & machinery
  • Assets to be sold on "as is where is" basis to unrelated parties at arm's length
  • Consideration not less than fair market value
  • Net proceeds to primarily repay outstanding long-term and short-term borrowings (₹78.21 crore), with any balance for working capital
  • Requires approval under Section 180(1)(a) of Companies Act, 2013
  • Subject to Regulation 37A of SEBI Listing Regulations (public shareholder approval requirement)
  • Assets are charged to lenders; their consent/no-objection required before completion

Item No. 2: Shifting of Registered Office

  • Special resolution to shift registered office from R.S. No. 347, Ambapwadi Phata N.H. 4 Vadgaon, Dist - Kolhapur, Maharashtra, 416112 to 'PARVATI-KUNJ' Plot No. 1, C.S. No. 250/B/1a/4 Nagala Park, Kolhapur, Maharashtra, 416003
  • Remains within same state and jurisdiction of Registrar of Companies
  • Form INC-22 to be filed within 30 days of change

Purpose and Rationale

For Spinning Unit Sale

  • Strategic restructuring to eliminate underperforming and loss-making spinning operations
  • Focus on high-margin, profitable segments (Hydro Power Project)
  • Become almost debt-free and maximize shareholder value
  • Avoid significant upcoming capital expenditure cycle
  • Expected to be EPS-accretive and provide more predictable earnings profile
  • Reduce exposure to capital-intensive segment with intensifying competition

For Registered Office Shift

  • Necessitated by proposed sale of spinning unit assets which includes current registered office premises
  • Ensure continuity of statutory, administrative and business operations
  • Administrative convenience and operational efficiency

Capital Structure Impact

No direct impact on share capital disclosed. The transaction involves asset disposal rather than equity changes.

Cash Flow Implications

  • Significant inflow from asset sale (amount to be determined)
  • Outflow for debt repayment of ₹78.21 crore
  • Potential working capital infusion from any remaining balance

Voting Arrangements

  • Remote e-voting through CDSL platform only
  • No physical ballot forms or business envelopes being sent
  • Scrutinizer appointed: Mr. Sachin Bidkar
  • Results will be announced on company website (www.mohite.com), CDSL website, and communicated to BSE

Material Changes

  • Spinning unit represented substantial portion of business (85.81% of total income)
  • Divestiture represents major strategic shift from textiles to focus on power business
  • Significant debt reduction planned (₹78.21 crore)