Katare Spinning Mills Limited has declared to the Bombay Stock Exchange that SEBI Regulation 24(A) concerning the Annual Secretarial Compliance Report is not applicable to the company. The Solapur-based textile manufacturer submitted this declaration on April 11, 2026, citing specific financial thresholds that exempt it from mandatory compliance requirements.

Financial Position and Exemption Criteria

The company's exemption claim is based on its financial position as on March 31, 2025. Katare Spinning Mills reported a paid-up capital of Rs. 2.85 crore and a net worth of Rs. 2.73 crore, both significantly below the Rs. 25 crore threshold required for mandatory compliance under SEBI regulations.

Three-Year Financial Trend Analysis

A chartered accountant certificate from Dinesh A. Tulshigar reveals the company's financial trajectory over three consecutive years. The analysis shows a declining trend in the company's net worth position.

Regulatory Exemptions Claimed

Based on its financial position, Katare Spinning Mills has claimed exemption from multiple SEBI regulations. The company stated that compliance under regulations 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27 and clauses (b) to (i) of sub-regulation (2) of regulation 46 and para C, D and E of Schedule V of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015 is not applicable.

Company Background

Katare Spinning Mills Limited operates from its registered office at Katare Complex, Raviwar Peth, Solapur, with manufacturing facilities at Kamala Nagar, Tamalwadi. The company is incorporated under CIN L17119PN1980PLC022962 and trades on BSE under scrip code 502933. Managing Director Kishore Katare signed the declaration submitted to the stock exchange.

The declaration was supported by a net worth certificate issued by chartered accountant Dinesh A. Tulshigar on July 11, 2025, providing the necessary documentation for the regulatory exemption claim.

Katare Spinning Mills Limited has officially declared its exemption from SEBI (Listing Obligations and Disclosure Requirements) Regulation 23(9) for the period ended March 31, 2026. The company communicated this exemption to the Bombay Stock Exchange through a formal declaration dated April 11, 2026.

Regulatory Exemption Criteria

The company qualifies for exemption under Regulation 15(2)(a) of SEBI (LODR) 2015, which provides relief from corporate governance provisions for listed entities meeting specific financial criteria. According to this regulation, companies with paid-up equity share capital not exceeding Rs. 10 crore and net worth not exceeding Rs. 25 crore as on the last day of the previous financial year are exempt from various compliance requirements.

Current Financial Position

Based on the company's last audited financial statement as on March 31, 2025, Katare Spinning Mills meets both exemption criteria:

Both figures fall significantly below the regulatory thresholds of Rs. 10 crore for paid-up capital and Rs. 25 crore for net worth, confirming the company's eligibility for exemption from related party transaction disclosure requirements.

Three-Year Financial Analysis

A chartered accountant's certificate provided by Dinesh A. Tulshigar reveals the company's financial trajectory over three consecutive years:

The analysis shows that while the paid-up capital remained constant at Rs. 2,85,00,000 across all three years, the company's net worth declined significantly from Rs. 6,26,40,875 in FY23 to Rs. 2,72,70,620 in FY25, primarily due to negative retained earnings of Rs. 73,11,332 in the latest financial year.

Regulatory Impact

This exemption means Katare Spinning Mills is not required to comply with various corporate governance provisions specified in regulations 17 through 27 of SEBI (LODR) 2015, including the disclosure of related party transactions under Regulation 23(9). The company has requested BSE to acknowledge this clarification and update their records accordingly.

Company Background

Katare Spinning Mills Limited, incorporated in 1980 with CIN L17119PN1980PLC022962, operates from its registered office in Solapur, Maharashtra. The company's manufacturing facility is located at Kamala Nagar, Tamalwadi, under the leadership of Managing Director Kishore Katare.