Kallam Textiles Limited has submitted its quarterly compliance certificate to the Bombay Stock Exchange, fulfilling regulatory requirements under SEBI's depositories regulations. The textile manufacturer filed the mandatory certificate for the quarter ended March 31, 2026, demonstrating adherence to prescribed dematerialisation procedures.

Regulatory Compliance Details

The compliance certificate was issued under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The document was prepared by Bigshare Services Pvt Ltd, serving as the company's Registrar and Transfer Agent (RTA), and subsequently forwarded to the stock exchange by Kallam Textiles Limited.

Certificate Confirmation

Bigshare Services Pvt Ltd confirmed in their certificate dated April 4, 2026, that all securities received from Depository Participants for dematerialisation during the quarter were properly processed. The RTA verified that:

• Securities received for dematerialisation were confirmed to the depositories
• All securities comprised in the certificates have been listed on the stock exchange
• Security certificates received for dematerialisation were mutilated and cancelled after due verification
• Names of the Depositories were substituted in the register of members as registered owners within the prescribed 15-day timeframe

Corporate Communication

The submission was made by Golagani Ramesh Kumar, Company Secretary and Compliance Officer of Kallam Textiles Limited, through a formal communication to the Corporate Relationship Department of the Bombay Stock Exchange. The company, formerly known as Kallam Spinning Mills Limited, operates from Chowdavaram, Guntur, Andhra Pradesh.

This quarterly filing represents part of Kallam Textiles Limited's ongoing commitment to maintaining regulatory compliance and transparency in its operations with depositories and market participants.

The National Company Law Tribunal (NCLT) Amaravati has admitted a petition filed by Union Bank of India under Section 7 of the Insolvency and Bankruptcy Code, 2016 against Kallam Textiles Limited for defaulting on financial obligations worth Rs.210.49 crore. The order was delivered on April 6, 2026, initiating the Corporate Insolvency Resolution Process (CIRP) against the textile manufacturer.

Financial Default and Timeline

The petition revealed that Kallam Textiles had been availing credit facilities from the erstwhile Andhra Bank since 1999, which later merged with Union Bank of India on April 1, 2020. The company's loan accounts slipped into Non-Performing Asset (NPA) category on June 29, 2023, following its failure to repay debts on due dates.

The bank had issued a statutory demand notice dated September 11, 2024 under Section 13(2) of the SARFAESI Act, demanding Rs.185.35 crore as on June 30, 2024. When the company failed to comply, Union Bank filed the insolvency petition seeking resolution of the outstanding debt.

Public Announcement and Claims Process

Following the NCLT order, Kallam Textiles has published the mandatory Form A public announcement in leading newspapers to notify creditors about the commencement of CIRP. The announcement was published on April 7, 2026 in Financial Express (English) and Andhra Prabha (regional language) covering all relevant editions.

Creditors have been called upon to submit their claims with proof by April 20, 2026. Financial creditors must submit claims electronically, while other creditors may submit in person, by post, or electronically. The IRP's correspondence address is B-725, Western Plaza, O.U. Colony, H.S. Darga, Hyderabad 500008, with email ktl.cirp@gmail.com .

Company Profile and Operations

Kallam Textiles, incorporated on December 18, 1992, operates in textile manufacturing including spinning, dyeing and allied operations. The company argued that it provides employment to approximately 400 direct employees and over 2,000 contract and daily wage workers. In its counter-submission, the company disputed the claimed amount and highlighted several key points:

• The company had been a customer of the financial creditor for six decades
• It had paid interest of Rs.400 crore over the last 30 years
• Three different restructuring proposals and one investor proposal were submitted but rejected
• The company was exploring restructuring under the MSME scheme

Tribunal's Decision and IRP Appointment

The NCLT examined three critical issues before admitting the petition, finding the petition was filed within the prescribed period and rejecting arguments about recovery-focused proceedings. The tribunal appointed Rajesh Chillale as the Interim Resolution Professional with specific directives:

The tribunal declared moratorium under Section 14 of the IBC, prohibiting institution of suits, transfer of assets, enforcement of security interests, and recovery of property by lessors. Union Bank of India has been directed to deposit Rs.4.00 lakh with the IRP to meet operational expenses.

The admission marks the beginning of a 180-day resolution process (extendable by 90 days) during which the company's management will be suspended, and the IRP will take control of operations while seeking potential resolution plans from interested parties.