Concord Enviro Systems Limited has received procedural approval from the National Company Law Tribunal (NCLT) Mumbai for its proposed scheme of arrangement focused on financial restructuring. The tribunal's order dated March 11, 2026, provides directions for conducting shareholder meetings and completing statutory formalities required for the scheme's implementation.

NCLT Order and Procedural Directions

The NCLT Mumbai Bench, comprising Hon'ble Members Shri Anil Raj Chellan (Technical) and Shri K. R. Saji Kumar (Judicial), has admitted the company's application filed under Section 230 read with Section 52 and Section 66 of the Companies Act, 2013. The tribunal has issued comprehensive directions for the scheme's progression:

Financial Restructuring Details

The scheme aims to address the company's negative retained earnings by adjusting them against the securities premium account. The Board of Directors approved this arrangement on August 8, 2025, with an appointed date of April 1, 2025.

Share Capital Structure

As of March 31, 2025, the company's capital structure remains unchanged, with the scheme not affecting shareholding patterns or capital distribution:

Stakeholder Meetings and Approvals

The NCLT has dispensed with meetings for both secured and unsecured creditors based on specific circumstances. The sole secured creditor with exposure of Rs. 2,96,97,101.13 has provided consent through affidavit. For 13 unsecured creditors with aggregate exposure of Rs. 6,63,32,024, the tribunal has directed notice issuance with 30-day representation period.

The company must conduct an equity shareholders meeting for its 55,298 shareholders. The meeting can be held through video conferencing or physical presence, with standard quorum requirements under Section 103 of the Companies Act.

Regulatory Compliance and Strategic Benefits

Concord Enviro Systems must serve notices to various regulatory authorities including the Central Government, Registrar of Companies, Income Tax authorities, GST authorities, BSE, NSE, and SEBI. These authorities have 30 days to submit representations.

The company expects several strategic benefits from this restructuring:

• Improved balance sheet presentation reflecting true financial health
• Enhanced reserve positioning for future dividend considerations
• Better utilization of securities premium account balance
• No impact on operational capabilities or liquidity position
• Alignment with accounting standards under Section 133 of the Companies Act

The scheme remains subject to shareholder approval and final sanction from the NCLT following completion of all procedural requirements.

Concord Enviro Systems Limited has submitted its monitoring agency report for the quarter ended December 31, 2025, in compliance with Regulation 32 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The report was prepared by ICRA Limited, the appointed monitoring agency for tracking the utilization of IPO proceeds.

IPO Proceeds and Utilization Status

The company's Initial Public Offer, which opened on December 19, 2024, and closed on December 23, 2024, raised total proceeds of INR 500.326 crore. The net proceeds available for the stated objects amount to INR 162.076 crore, slightly lower than the originally estimated INR 162.892 crore due to higher actual issue-related expenses.

Object-wise Progress Analysis

The monitoring agency report reveals varied progress across different investment objectives. The company has completed one major object - the investment in wholly owned subsidiary Concord Enviro FZE for debt repayment, utilizing the full allocated amount of INR 50.000 crore.

Deployment of Unutilized Funds

The company has prudently deployed its unutilized proceeds in fixed deposits with ICICI Bank Limited, earning returns ranging from 2.75% to 7.25%. The total deployment amounts to INR 74.239 crore across multiple fixed deposits with varying maturity dates.

Compliance and Implementation Timeline

The monitoring agency confirmed no material deviations from the disclosed objects of the issue. All project implementations remain on schedule according to the original timeline specified in the offer document. The company has obtained necessary approvals and maintains compliance with regulatory requirements.

Key compliance highlights:

• No deviation from original investment objects
• All utilization aligned with offer document disclosures
• No changes in means of finance for disclosed objects
• Government approvals being obtained as per schedule
• No unfavorable events affecting project viability

General Corporate Purpose Utilization

Under the general corporate purpose category, the company utilized INR 19.845 crore out of the allocated INR 19.864 crore primarily for working capital requirements. The funds were deployed through payments to wholly owned subsidiary Concord Enviro FZE for material procurement, supporting the company's operational needs.

The monitoring agency report demonstrates the company's systematic approach to fund utilization while maintaining transparency and regulatory compliance throughout the process.