Balkrishna Paper Mills Limited has secured shareholder approval to reduce its share capital, a move aimed at adjusting accumulated losses and reorganizing its capital structure. The resolutions were passed via a postal ballot conducted through remote e-voting, which concluded on July 2, 2026. The scheme involves reducing the face value of equity shares from ₹10 to ₹1 and cancelling the entire preference share capital of ₹110 crore.

Scheme of Reduction of Share Capital

The special resolution for the capital reduction received overwhelming support, with 99.94% of votes cast in favor. Under the approved scheme, accumulated losses totaling ₹52,28,37,029 as on September 30, 2025, will be adjusted against the Securities Premium Reserve and the paid-up equity share capital. Consequently, the issued, subscribed, and paid-up equity share capital will be reduced from ₹32,21,95,320 to ₹3,22,19,532. The 6.5% Non-Cumulative Redeemable Preference Shares worth ₹110 crore will be cancelled, with the consideration payable treated as an unsecured non-interest bearing loan until funds are available.

Material Related Party Transactions

Shareholders approved three ordinary resolutions concerning material related party transactions. These transactions involve entities such as Futuristic Concepts Media LLP, Sanchna Trading and Finance Limited, and S P Finance and Trading Limited. The approval covers the discharge of preference share capital consideration and the entering into of inter-corporate deposits (ICDs) for the financial years 2026-27 and 2027-28.

Voting Results

The voting process was scrutinized by Shri Prasen Naithani of M/s. P. Naithani & Associates. A total of 14,883 shareholders were eligible to vote as on the record date of May 22, 2026. The table below summarizes the voting outcomes for the key resolutions:

Inter-Corporate Deposits

Specific approval was granted for availing ICDs up to ₹25 crore for FY 2026-27 and up to ₹25 crore for FY 2027-28 from S P Finance and Trading Limited and Sanchna Trading and Finance Limited. These deposits will carry an interest rate of up to 12% per annum and will be conducted on an arm’s length basis. The company stated that the shareholding pattern and the number of equity shares will remain unchanged post-reduction, and the shares will continue to be listed on BSE and NSE.

Balkrishna Paper Mills Limited has resubmitted its Statement on Impact of Audit Qualifications for the quarter and year ended March 31, 2025, to the National Stock Exchange of India Limited. The filing confirms that the company's net worth stands at a negative of Rs.16892.83 Lakhs as of March 31, 2025, indicating a material uncertainty that may cast significant doubt on its ability to continue as a going concern. The resubmission was in response to an NSE query dated June 25, 2026, and a reminder dated June 28, 2026, regarding the financial results submitted on May 29, 2025.

The statement, signed by the Chairman & Managing Director, CFO, Audit Committee Chairman, and Statutory Auditor, notes that adjusted figures are unascertainable and therefore not provided. The auditor, D S M R & Co, drew attention to the discontinuance of the manufacturing activity of paper and paperboard situated at Ambivali. This situation, coupled with the negative net worth, forms the basis of the going concern qualification.

The company's ability to continue as a going concern is dependent on the generation of expected cash flows to meet its obligations as they arise. The financial statements were prepared on a going concern basis based on the reasons and assumptions stated in the notes to the financial results. The disclosure was submitted under Regulation 33 of the SEBI (LODR) (Amendment) Regulations, 2016.

Key Financial Disclosures

The following table outlines the particulars for which audited figures were reported, while adjusted figures remained unascertainable.

The document was signed by Shailendra Singh Rathore, Partner of D S M R & Co, on May 29, 2025. The company's signatories included Anurag P. Poddar, Chairman & Managing Director; Manish Omkarmal Malpani, CFO; and Dileep Himmatrao Shinde, Audit Committee Chairman. The resubmission was formally communicated by Omprakash Singh, Company Secretary and Compliance Officer, on June 29, 2026.