Event Details

The addendum proposes approval for the disposal of the company's Pipe Unit (UNIT-1) via slump sale as a going concern. The AGM is scheduled to be held on Wednesday, September 30, 2026, at 11:30 a.m. through Video Conferencing/Other Audio-Visual Means.

Transaction Specifics

  • Asset for Sale: UNIT-1 (Pipe Division), located in Gujarat, to be sold on an 'As Is Where Is' and 'As Is What Is' basis
  • Purchaser: M/s ] and M Enterprises, a partnership firm
  • Consideration: Aggregate lumpsum commercial consideration of ₹1,00,000/- (Rupees One Lakh only)
  • Valuation: Based on valuation report from an IBBI Registered Valuer
  • Authorization Sought: Under Section 180(1)(a) of the Companies Act, 2013

Financial Impact

  • UNIT-1 contributed Nil revenue during FY 2025-26
  • The net worth attributable to the unit is ₹9.62 crore, representing approximately 6% of the company's total net worth as of March 31, 2026
  • The transaction consideration of ₹1,00,000 follows the independent business valuation report based on book metrics up to June 30, 2026

Rationale

The Pipe Unit was established as a captive plant primarily to supply RCC Hume Pipes for sewage pipeline and allied infrastructure works in Gujarat. Key projects have been successfully completed or substantially completed, resulting in negligible market demand. The unit is not generating any operational revenue or turnover. Maintaining unutilized infrastructure or relocating the plant was evaluated as economically unviable. The divestment aims to optimize the company's operational resource framework and improve overall asset utilization.

Timeline

  • Board approval date: August 12, 2026
  • Estimated completion date: On or before October 20, 2026

Governance Aspects

None of the Promoters, Directors, or Key Managerial Personnel of the company, nor their respective relatives, have any direct or indirect commercial or financial interest in the purchaser firm or the proposed transaction. The transaction does not qualify as a Related Party Transaction (RPT).

The Board recommends the Special Resolution for shareholder approval.