Charms Industries Limited Completes NCLT-Approved Share Capital Reduction Process

Charms Industries Limited has successfully completed its share capital reduction process following approval from the National Company Law Tribunal (NCLT), Ahmedabad Bench. The company published newspaper notices in Financial Express in both English and Gujarati languages, confirming the registration of the tribunal's order.

NCLT Order and Registration Details

The NCLT Ahmedabad Bench passed its order on March 26, 2026, in Company Petition No. 4 of 2025 (CP/4(AHM)2025), confirming the reduction of share capital and cancellation of capital reserve under Section 66 of the Companies Act, 2013. Following the submission of Form INC 28, the Registrar of Companies (Ahmedabad) issued a certificate dated April 21, 2026, registering the order and the minute of capital reduction.

Capital Restructuring Framework

The approved capital restructuring involves significant changes to the company's financial structure:

Parameter Before Reduction After Reduction Paid-Up Equity Share Capital ₹4,10,61,000 ₹41,06,100 Number of Equity Shares 41,10,100 shares 41,06,100 shares Face Value per Share ₹1 each ₹1 each Capital Reserve Cancelled ₹31,46,530 -

Transfer to Capital Restructuring Account

As part of the restructuring process, multiple amounts will be transferred to a "Capital Restructuring Account":

Capital Reduction Amount: ₹3,69,54,900 from the share capital reduction

Capital Reserve Cancellation: ₹31,46,530 from cancelled capital reserve

Profit & Loss Account Adjustment: ₹4,01,01,430 debit balance to be transferred

The Capital Restructuring Account will be fully adjusted through these transfers, effectively clearing the company's accumulated losses while maintaining the same number of equity shares at a reduced face value.

Regulatory Compliance

The company has fulfilled all regulatory requirements for the capital reduction process. The newspaper publication serves as public notice of the order confirmation and registration, ensuring transparency in the corporate restructuring process. The copies of newspaper publications have been made available on the company's website and submitted to BSE Limited for record purposes.

The capital reduction becomes effective from the date of registration of the minute, April 21, 2026, with 41,06,100 equity shares of ₹1 each now constituting the company's fully paid-up share capital.

Charms Industries Limited has submitted its quarterly compliance certificate to BSE Limited, fulfilling regulatory requirements under SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended March 31, 2026.

Regulatory Compliance Submission

The company submitted the Certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018 on April 15, 2026. The certificate was issued by Bigshare Services Private Limited, which serves as the registrar and share transfer agent for Charms Industries Limited.

Parameter: Details Quarter Period: March 31, 2026 Regulation: SEBI Regulation 74(5) Registrar: Bigshare Services Private Limited BSE Scrip Code: 531327 Submission Date: April 15, 2026

Certificate Confirmation Details

Bigshare Services Private Limited confirmed that securities received from depository participants for dematerialization up to March 31, 2026 were properly processed and confirmed to the depositories. The registrar verified that all securities comprised in the certificates have been listed on the stock exchange where the earlier issued securities are listed.

The certificate confirms compliance with key regulatory requirements:

Securities received for dematerialization were mutilated and cancelled after due verification by the depository participant

Names of the depositories were substituted in the register of members as registered owners within 15 days of receipt of certificate of securities

All dematerialization processes were completed in accordance with SEBI guidelines

Company Information

Charms Industries Limited operates with CIN L72900GJ1992PLC017494 and maintains its registered office at 108-B/109 Sampada Building, Mithakhali Six Roads, Ahmedabad, Gujarat. The submission was signed by Shivkumar R. Chauhan, Managing Director (DIN: 00841729), demonstrating proper authorization and corporate governance.

The quarterly compliance certificate submission reflects the company's ongoing commitment to regulatory adherence and transparent securities handling processes as mandated by SEBI regulations.

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