Balkrishna Paper Mills Limited has received return letters from both BSE Limited and the National Stock Exchange of India Limited regarding its proposed Scheme of Reduction of Share Capital under Section 66 read with Section 52 of the Companies Act, 2013. The company informed the exchanges about receiving these return letters dated April 13, 2026, through a communication dated April 18, 2026.

Regulatory Development and Return Letters

Both exchanges returned the draft scheme citing the non-applicability of Regulation 37 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The return was based on a recent amendment to Regulation 37(6)(b) notified through a gazette notification dated December 13, 2024.

Scheme Details and Exemption Criteria

The proposed scheme involves writing off accumulated losses of the company against its share capital, applied uniformly across all shareholders on a pro rata basis. According to the exchanges, this type of scheme falls under the exemption provided in Regulation 37(6)(b) of the SEBI (LODR) Regulations.

The key observations made by both exchanges include:

• The draft scheme solely involves writing off accumulated losses against share capital
• The application is uniform across all shareholders on a pro rata basis
• Such schemes are exempt from Regulation 37 requirements as per the December 13, 2024 amendment
• The reduction of unlisted Non-Convertible Redeemable Preference Shares (NCRPS) issued to promoters does not fall under SEBI/exchange purview

Regulatory Framework and Compliance

The exchanges clarified that schemes which solely provide for writing off accumulated losses against share capital or reserves of listed entities, when applied uniformly on a pro rata basis, are exempt from Regulation 37 requirements. These schemes only need to be filed with recognized stock exchanges for disclosure purposes.

Outstanding Approvals and Next Steps

Despite the return of the draft scheme by the exchanges, the company noted that the scheme remains subject to various statutory and regulatory approvals. These include approvals from the National Company Law Tribunal (NCLT) and the shareholders of the company.

The company's communication was signed by Omparakash Singh, Company Secretary and Compliance Officer, and included copies of the return letters from both exchanges as enclosures. The scheme was originally approved by the Board of Directors on December 23, 2025, subject to receipt of various statutory and regulatory approvals.

Balkrishna Paper Mills Limited has formally notified stock exchanges that it does not qualify as a Large Corporate under the SEBI framework established through circular SEBI/HO/DDHS/DDHS-RACPOD1/P/CIR/2023/172 dated October 19, 2023. The company submitted its initial disclosure in the prescribed format to both BSE Limited and National Stock Exchange of India Limited on April 17, 2026.

Company Financial Position

The disclosure reveals key financial information about Balkrishna Paper Mills Limited's borrowing position and regulatory status. The company provided specific details about its outstanding debt obligations as required under the SEBI circular.

Regulatory Compliance Status

Balkrishna Paper Mills Limited explicitly confirmed that it does not meet the applicability criteria for Large Corporate classification under the SEBI circular. The company stated that based on its current financial parameters, particularly its outstanding long-term borrowing of Rs. 32.50 crores, it falls outside the scope of the Large Corporate framework requirements.

The disclosure indicates that the company does not have a credit rating for the previous financial year, which is reflected as "N.A." in the submitted format. Additionally, the provision for fine payment through stock exchanges is marked as not applicable to the company's current status.

Official Authorization

The disclosure was officially authorized and digitally signed by two key executives of Balkrishna Paper Mills Limited. Company Secretary and Compliance Officer Omparakash Singh signed the document on April 17, 2026, at 17:38:03, followed by CFO Manish Malpani's digital signature at 17:38:46 on the same date. This dual authorization ensures proper corporate governance compliance in the regulatory submission process.