Procal Electronics India Limited announced significant financial restructuring decisions following its Board of Directors meeting held on March 31, 2026, at the company's registered office in Mumbai. The board approved comprehensive measures involving asset takeover, balance sheet adjustments, and account reclassification as part of ongoing financial reorganization efforts, disclosed under SEBI Regulation 30.

Asset Takeover by Canara Bank

The board formally approved the takeover of the company's immovable and movable assets along with inventory by Canara Bank. These assets were subsequently sold through an e-auction process conducted under the provisions of the SARFAESI Act, 2002, as part of the bank's recovery proceedings.

The company's fixed assets and inventories in possession of Canara Bank were taken over and sold on an "as is where basis" through the e-auction process. Procal Electronics received proper intimation from Canara Bank regarding the sale proceedings as part of the bank's recovery actions.

Financial Balance Adjustments and Write-offs

The company undertook significant balance sheet cleanup measures to reflect its true financial position. The board approved writing off several long-standing debit and credit balances that were identified as not recoverable or payable. This decision, duly approved by the board, aims to present a more accurate representation of the company's financial health by removing non-performing entries from its books.

Accounts Reclassification Initiative

To align the company's financial records with current standards, Procal Electronics implemented comprehensive re-grouping and reclassification of various accounts in ledgers and heads. This restructuring process encompasses:

• Consolidation of related account categories
• Segregation of distinct financial elements
• Correct categorization of assets and liabilities
• Enhanced financial transparency and accuracy

The reclassification exercise is designed to ensure that the company's financial statements accurately reflect its true financial position and comply with applicable accounting standards.

Regulatory Compliance and Meeting Details

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The board meeting was conducted at the company's registered office located at 201, Shyam Baba House CHS Ltd., Upper Govind Nagar, Malad - East, Mumbai 400097.

These measures represent significant steps in Procal Electronics India Limited's financial restructuring process, aimed at establishing a clearer and more accurate financial foundation for the company's operations while ensuring full regulatory compliance.