Kallam Textiles has been penalised ₹1,53,400 by the Bombay Stock Exchange for failing to submit its audited financial results within the prescribed timeline. The penalty stems from non-compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The exchange levied the fine on September 11, 2026, citing the delay in filing results for the quarter ended June 30, 2026, as well as the financial year ended March 31, 2026. The total amount comprises a basic fine of ₹1,30,000 plus applicable GST of ₹23,400.

Compliance Context

The company disclosed that the delay was driven by operational challenges arising during its ongoing Corporate Insolvency Resolution Process (CIRP). Specifically, Kallam Textiles cited difficulties in collating and reconciling financial information and completing statutory audit procedures.

Prior to the imposition of the fine, the company had written to the BSE on September 4, 2026, seeking an extension of time and explaining the reasons for the delay. Following the receipt of the penalty communication, Kallam Textiles has requested a waiver of the fines from the exchange.

Regulatory Implications

Under the SEBI Standard Operating Procedure, the company is required to pay the fine within 15 days of the communication date. Failure to do so may result in the freezing of the promoter’s entire shareholding in the entity and other securities held in their demat account.

Furthermore, if this constitutes a second consecutive year of non-compliance with Regulation 33, the company faces transfer to the Z group and potential suspension of trading for its equity shares. The board of directors is required to place this matter before its next meeting for comments.

What the Numbers Show

The fine structure reflects a daily penalty rate of ₹5,000 until compliance is achieved. The total basic fine of ₹1,30,000 indicates a delay period of 26 days beyond the statutory deadline for the June 2026 quarter filings. This calculation excludes any additional accruals that may occur if rectification is not completed to the exchange's satisfaction.

Kallam Textiles has received a GST show cause notice demanding ₹4.98 crore from the Additional Commissioner (S.T.), Vijayawada, Andhra Pradesh. The notice, dated August 27, 2026, pertains to alleged non-payment of tax, interest, and penalty for the financial year 2020-21.

The textile manufacturer, which is currently under the Corporate Insolvency Resolution Process (CIRP), disclosed the receipt of Form GST DRC-01 to the Bombay Stock Exchange on August 28, 2026. The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Regulatory Action Details

The notice was issued under Section 73(1) of the Andhra Pradesh Goods and Services Tax Act, 2017. It cites alleged contraventions related to tax liabilities during FY21. The total demand includes principal tax, accrued interest, and applicable penalties.

Company Response

Kallam Textiles stated that it does not agree with the contents of the show cause notice. The company indicated it would take appropriate legal action in response to the demand. No quantifiable financial impact beyond the stated demand was disclosed in the filing.

What the Numbers Show

The notice arrives while the company is under CIRP, adding a layer of regulatory complexity to its insolvency proceedings. The demand of nearly ₹5 crore represents a significant contingent liability that could affect the resolution plan's feasibility or the final distribution to creditors if upheld.