Rajapalayam Mills Limited has filed its quarterly compliance certificate under SEBI Regulation 74(5) for the quarter ended March 31, 2026. The textile manufacturer submitted the mandatory certificate confirming proper handling of share dematerialization and rematerialization activities during Q4FY26.

Regulatory Compliance Filing

The company submitted its certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018 to BSE Limited on April 6, 2026. The certificate was prepared by Cameo Corporate Services Limited, which serves as the company's Registrar and Share Transfer Agent.

Dematerialization Activity Summary

During Q4FY26, Rajapalayam Mills processed dematerialization requests for a total of 1,900 shares across 4 transactions through both NSDL and CDSL depositories. The company reported no rematerialization requests during the quarter.

NSDL Transactions

Three dematerialization transactions were processed through NSDL during the quarter:

CDSL Transactions

One dematerialization transaction was completed through CDSL:

Certificate Confirmation

Cameo Corporate Services Limited confirmed that all securities received from depository participants for dematerialization during Q4FY26 were properly processed and confirmed to the depositories. The registrar verified that:

• All security certificates received for dematerialization were mutilated and cancelled after due verification
• The names of the depositories were substituted in the register of members as registered owners within stipulated time limits
• All securities comprised in the certificates have been listed on stock exchanges where the company's earlier issued securities are listed

Company Information

Rajapalayam Mills Limited, incorporated in 1936, operates from its registered office at Rajapalayam Mills Premises, P.A.C.Ramasamy Raja Salai, Rajapalayam, Tamil Nadu. The company is engaged in textile manufacturing and has been celebrating its journey from 1936 to 2026, marking significant milestones in the yarn manufacturing sector.

This quarterly filing demonstrates the company's adherence to SEBI regulations governing depository operations and ensures transparency in share transfer and dematerialization processes for its stakeholders.

Rajapalayam mills Limited has provided a corporate guarantee of Rs.40 crores to Kotak Mahindra Investments Limited on behalf of group company Sandhya Spinning Mill Limited. The guarantee was submitted on 25-03-2026 following board approval obtained on 11-08-2025, as disclosed under SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Corporate Guarantee Details

The corporate guarantee has been structured as a three-party agreement involving Sandhya Spinning Mill Limited as the borrower, Rajapalayam Mills Limited as the guarantor, and Kotak Mahindra Investments Limited as the lender. The primary purpose of this guarantee is to support the loan facility sanctioned by Kotak Mahindra Investments Limited to Sandhya Spinning Mill Limited.

Related Party Transaction Structure

This transaction qualifies as a related party transaction due to the existing relationship between the companies. Sandhya Spinning Mill Limited is a member of the promoter group of Rajapalayam Mills Limited and holds 0.01% equity shares in the company. Additionally, key promoters including P.R. Venketrama Raja, R. Sudarsanam, P.V. Nirmala Raju, B. Sri Sandhya Raju, and P.V. Abinav Ramasubramaniam Raja collectively hold 97.514% equity shareholding in Sandhya Spinning Mill Limited.

Terms and Conditions

Under the guarantee agreement, if Sandhya Spinning Mill Limited defaults on loan repayment along with interest on the due date, Rajapalayam Mills Limited will be liable to pay the outstanding amount to Kotak Mahindra Investments Limited. The lender does not have rights to appoint directors, first right to share subscription, or rights to restrict capital structure changes.

Strategic Rationale

The corporate guarantee is designed to strengthen Sandhya Spinning Mill Limited's creditworthiness, enabling the company to secure financing at competitive interest rates and favorable terms and conditions. Rajapalayam Mills Limited has not received any commission, brokerage, fees, or other consideration for providing this guarantee, maintaining the arm's length nature of the transaction consistent with other group company guarantees.

The company has confirmed that this guarantee aligns with its existing practice of providing corporate guarantees to other group companies, ensuring consistency in its financial support framework for related entities.