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.

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.

Charms Industries Limited has received approval from the National Company Law Tribunal (NCLT) Ahmedabad for its comprehensive share capital reduction scheme. The tribunal's order dated March 26, 2026, marks a significant milestone in the company's capital restructuring efforts, which began with board approval in July 2023.

NCLT Order Details

The NCLT has sanctioned the reduction of Charms Industries' existing paid-up equity share capital through a structured approach:

The scheme involves cancelling paid-up capital amounting to ₹3,69,54,900 which has been lost or is unrepresented by available tangible assets. The capital reserve account of ₹31,46,530 will also be cancelled and adjusted against the debit balance of the Profit & Loss Account.

Regulatory Approvals and Compliance

The capital reduction scheme received comprehensive regulatory clearance before NCLT approval. The company obtained shareholder approval through a special resolution passed in the Annual General Meeting held on September 23, 2024. During the voting process, 25 out of 26 members voted in favour of the resolution, with public shareholders casting 3,71,495 votes in favour against only 6 votes opposing the scheme.

BSE Limited, after receiving observations from SEBI dated June 28, 2024, issued its observation letter on July 1, 2024, conveying no adverse observations limited to matters having bearing on listing and continuous listing requirements. The Regional Director, Registrar of Companies, and Income Tax Department all provided no-objection certificates for the scheme.

Financial Impact and Rationale

The tribunal noted that the company has four unsecured creditors with total claims of ₹51,22,034 as of November 30, 2024, all of whom provided no-objection certificates. The reduction aims to realign the relationship between capital and assets, providing a clearer and fairer reflection of the company's financial position in its books of accounts.

Implementation Requirements

The NCLT order mandates several compliance requirements for implementation. The company must publish the confirmation order in English and vernacular language newspapers and deliver certified copies to the Registrar of Companies and statutory authorities within 30 days. Additionally, Charms Industries is directed to pay ₹10,000 towards legal fees to the Office of the Regional Director.

The company has been operating under CIN L72900GJ1992PLC017494 and was originally incorporated as Charms Ceramics Limited in April 1992, later changing its name to Charms Industries Limited in April 1999. The tribunal noted that the company ceased its money changing business activities following the expiry of its RBI license on July 1, 2021.