Kinetic Trust Limited, a Listed Non-Banking Financial Company (NBFC), has disclosed that the Hon'ble National Company Law Tribunal (NCLT), Allahabad Bench, Prayagraj, approved its Resolution Plan for the Corporate Insolvency Resolution Process (CIRP) of Sibri Traders Private Limited vide order dated May 6, 2026. The company received the certified copy of the order on May 15, 2026, and made the requisite disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 on May 18, 2026.

Background of the CIRP

The CIRP against Sibri Traders Private Limited was initiated on April 24, 2025, pursuant to a Company Petition bearing CP (IB) No. 143/ALD/2024 filed by financial creditor M/s Bakliwal Vyapaar Private Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016. Sibri Traders Private Limited is engaged in trading activities including buying, selling, reselling, importing, exporting, transporting, storing, developing, promoting, marketing, supplying and dealing in betel nuts, catechu (Khata), perfumes, and other related goods on both retail and wholesale basis. A total of seven CoC meetings were held during the CIRP period, with the sole CoC member, M/s Bakliwal Vyapaar Private Limited, holding 100% voting share.

Resolution Plan and Financial Proposal

Kinetic Trust Limited submitted a revised Resolution Plan on October 8, 2025, which was considered and approved by the CoC in its 6th meeting held on October 11, 2025, with 100% voting share. The following table summarises the key financial details of the approved Resolution Plan as presented in Form H:

The creditor-wise distribution under the approved Resolution Plan is as follows:

In addition to the resolution plan amount of Rs. 1,10,00,000, unpaid CIRP costs up to Rs. 10 Lacs, as approved by the CoC during the CIRP period, are to be paid in full by the Resolution Applicant separately, in priority over all other creditors, in accordance with Section 30(2)(A) of the Code.

Key Terms and Implementation Schedule

The Resolution Plan provides for implementation within 90 days from the Effective Date, which is defined as the date of approval of the Resolution Plan by the Adjudicating Authority. Key implementation milestones include:

• Formation of Monitoring Committee: Automatically on the Effective Date
• Signing of Definitive Agreement: Within 90 days from the Effective Date
• Extinguishment of 100% shares of existing shareholders and issuance of fresh shares to the Resolution Applicant: Within 90 days from the Effective Date
• Infusion of funds (upfront payment): Within 90 days from the Effective Date
• Balance payment: Within 90 days from the Effective Date
• Dissolution of Monitoring Committee: Upon payment of balance amount

The SRA submitted a performance bank guarantee amounting to Rs. 14,00,000 via RTGS on October 30, 2025, along with Rs. 20,00,000 and Rs. 10,00,090 as Earnest Money Deposit at the time of submission of the EOI.

Monitoring Committee and Post-Approval Directions

The NCLT constituted a Monitoring Committee comprising one nominee member of the CoC, one nominee member of the Resolution Applicant, and the Resolution Professional. The Monitoring Committee is directed to supervise the implementation of the Resolution Plan and file monthly reports on its progress. The moratorium imposed under Section 14 of the Code shall cease to have effect from the date of the order. The Resolution Professional has been directed to pursue PUFE applications under Sections 43, 44, 45, 49, 50, and 66 of the Code, with any recovery to be shared with the financial creditor of the Corporate Debtor.

About the Successful Resolution Applicant

Kinetic Trust Limited is a Listed Non-Banking Financial Company (NBFC) incorporated in 1992 with CIN L67120PB1992PLC012532, listed on BSE with over three decades of experience. The company provides a comprehensive portfolio of financial services including investment and trading portfolio and fund management services, merchant banking, and cooperative services, catering to both institutional and individual investors. The NCLT, upon reviewing the Resolution Plan and all compliance documents including Form H, found the plan to be in conformity with Sections 30 and 31 of the Insolvency and Bankruptcy Code, 2016, and the applicable CIRP Regulations, and accordingly approved the same vide its order dated May 6, 2026.

Kinetic Trust Limited has submitted its integrated filing of audited financial results for the quarter and year ended March 31, 2026, to BSE Limited pursuant to SEBI and stock exchange circulars. The filing was made on May 1, 2026, by Rajesh Arora, Director of the company. The statutory auditors, M/s Sunita Agrawal & Co., Chartered Accountants, have issued an audit report with an unmodified opinion on the standalone financial statements for the financial year ended March 31, 2026.

The company's financial performance for FY26 shows total revenue of INR 175.17 lakhs, an increase from INR 118.24 lakhs in the previous year. Revenue from operations for the year stood at INR 175.12 lakhs, while other income contributed INR 0.05 lakhs. Total expenses for FY26 amounted to INR 154.24 lakhs, compared to INR 93.79 lakhs in FY25. The company reported a profit before tax of INR 20.93 lakhs for the year, with net profit after tax at INR 14.76 lakhs, lower than the INR 18.21 lakhs recorded in the previous year.

For the quarter ended March 31, 2026, the company recorded revenue from operations of INR 62.28 lakhs and reported a net loss of INR 1.32 lakhs. In comparison, the same quarter in the previous year had shown revenue of INR 112.85 lakhs and a net profit of INR 29.13 lakhs. Basic and diluted earnings per equity share for the quarter stood at negative INR 0.04, compared to positive INR 0.87 in the corresponding period of the previous year.

Balance Sheet Position

The balance sheet as of March 31, 2026, reveals total assets of INR 3,670.94 lakhs, a significant increase from INR 2,039.19 lakhs in the previous year. The asset composition shows loans at INR 3,474.43 lakhs, cash and cash equivalents at INR 68.11 lakhs, and investments at INR 80.00 lakhs. On the liabilities side, borrowings stood at INR 2,859.58 lakhs, while equity share capital remained unchanged at INR 336.00 lakhs.

Regulatory Compliance and Observations

The auditors noted in their report that the company, registered as a Non-Banking Financial Company (NBFC) with the Reserve Bank of India, has Net Owned Funds (NOF) of INR 4.16 crores as of March 31, 2026. The company is unable to maintain the required minimum NOF of INR 5 crores due to an ongoing takeover process, which restricts its ability to increase share capital. This fact has been communicated to both RBI and SEBI. The company has not accepted any public deposits and has complied with prudential norms relating to income recognition, asset classification, and provisioning.

The cash flow statement for FY26 shows net cash inflow from operating activities of INR 407.43 lakhs, compared to INR 26.79 lakhs in the previous year. Net cash used in investing activities was INR 1,669.26 lakhs, primarily due to an increase in loans of INR 1,669.26 lakhs. Financing activities generated net cash inflow of INR 1,329.54 lakhs from increased borrowings. The company ended the year with cash and cash equivalents of INR 68.11 lakhs, up from INR 0.41 lakhs at the beginning of the year.