K G Denim Limited has initiated a postal ballot process to seek shareholder approval for the sale of non-factory vacant land in Coimbatore, Tamil Nadu, as part of a restructuring scheme with bankers. The company intends to utilize the proceeds from the sale to reduce its long-term and short-term debts and meet other business requirements. The resolution requires a special resolution under Section 180(1)(a) of the Companies Act, 2013.

The land, measuring 19.35 Acres, is situated in various S.F Nos at Karamadai, Coimbatore District. The Board of Directors has been authorized to sell or dispose of the undertaking in one or more tranches on an "as is where is" basis for consideration not less than the market price. The company stated that it is in the process of identifying potential buyers who are not related parties.

Postal Ballot and E-Voting Schedule

The remote e-voting facility is provided by Central Depository Services (India) Limited (CDSL). The voting period commenced on June 10, 2026, at 9.00 AM IST and will conclude on July 9, 2026, at 5.00 PM IST. Shareholders whose names appear in the Register of Members or Beneficial Owners as on the cut-off date of June 5, 2026, are eligible to vote.

Regulatory and Procedural Details

The postal ballot notice was sent in compliance with Section 110 of the Companies Act, 2013, read with Regulation 44 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Sri. M. D. Selvaraj, FCS, Managing Partner of MDS & Associates LLP, has been appointed as the Scrutinizer to ensure the process is conducted fairly.

The results of the postal ballot will be announced within two working days from the conclusion of the e-voting period. The special resolution will be acted upon only if the votes cast by public shareholders in favour exceed the votes cast against it, as per the proviso to Regulation 37A of the SEBI LODR Regulations.

K G Denim Limited returned to profitability in the financial year ended March 31, 2026, reporting a net profit of ₹142.66 lakh, a significant reversal from the net loss of ₹3588 lakh recorded in the previous year. The recovery was primarily driven by a profit of ₹1356.02 lakh from the sale of non-core assets, which was recorded under other income. The company’s statutory auditors, Gopalaiyer and Subramanian, issued an unmodified opinion on the audited financial results for both standalone and consolidated statements.

For the quarter ended March 31, 2026, the standalone net profit stood at ₹692.5 lakh, while revenue from operations for the full year was ₹2000.37 lakh. Total income for the year rose to ₹4062.56 lakh. The company’s Textiles segment reported a profit before interest and tax of ₹3397 lakh for the year, whereas the Power segment recorded a loss of ₹1093 lakh.

Asset Sale and Restructuring

As part of a restructuring scheme with its consortium of bankers, the Board approved the sale of non-factory vacant land situated at Karamadai, Coimbatore. The transaction is subject to shareholder approval via a special resolution and a postal ballot process. The company expects the sale, along with promoters' contribution, to fetch around ₹50 crore by June 30, 2026. The proposed sale is intended for unrelated buyers and is not classified as a related party transaction.

Auditor’s Emphasis and Legal Proceedings

The auditors drew attention to proceedings initiated by creditors before the National Company Law Tribunal (NCLT) for the recovery of outstanding dues aggregating to ₹2.68 crore, which remained pending as of March 31, 2026. Despite this, the auditors' opinion remained unmodified. The management stated it is actively engaged in discussions to settle these claims.

Financial Metrics

The following table outlines the key standalone financial figures for the year ended March 31, 2026:

The Board also re-appointed M/s Mohan & Venkataraman, Chartered Accountants, as internal auditors for the financial year 2026-27. The meeting was held on May 29, 2026.