Harish Textile Engineers Limited has informed BSE about its inability to redeem Non-Convertible Debentures (NCDs) worth ₹1.47 crore that were due for redemption on December 20, 2025. The company disclosed this development under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

NCD Redemption Default Details

The company has defaulted on its 7% Unlisted, Secured, Unrated, Redeemable, Non-Convertible Debentures (Series-IV). The NCDs were originally issued on September 21, 2022, with a three-year tenure at 7% interest rate, payable half-yearly on September 30 and March 31 every year.

Outstanding Interest and Total Debt Position

Apart from the principal redemption amount, Harish Textile Engineers has been unable to service interest payments on these NCDs from April 1, 2025, till December 20, 2025. The company's total financial indebtedness, including short-term and long-term debt, stands at ₹31.64 crore.

The company had issued NCDs worth ₹4.23 crore across four series. While Series I (₹0.93 crore) and Series II (₹1.13 crore) were redeemed on their respective due dates, Series III faced partial redemption with ₹0.65 crore remaining in default since October 7, 2025.

Debenture Holders Meeting Outcome

The company held a meeting of debenture holders on December 22, 2025, conducted virtually by Axis Trustee Services Limited, the Debenture Trustee. The meeting addressed issues related to both Series III and Series IV NCDs. During the discussions between the Debenture Trustee, debenture holders, and the company, it was observed that certain issues require further deliberation and finalization.

The meeting concluded with an agreement to hold further discussions in a subsequent meeting scheduled for next week. The Debenture Trustee will issue a separate notice specifying the date and time for the upcoming meeting to both the company and all debenture holders.

Reasons for Financial Distress

The company attributed the redemption delay to general slowdown in the manufacturing sector coupled with ongoing cash flow constraints and liquidity crunch. However, the management stated that the present liquidity crisis is temporary and will not affect its going concern status. Harish Textile Engineers continues to coordinate with the Debenture Trustee and NCD holders to arrive at a suitable resolution.

Harish Textile Engineers Limited , a Mumbai-based textile company, has successfully resolved a legal matter that was previously under court proceedings. The company has announced the closure of a court case filed under the Negotiable Instruments Act, bringing positive resolution to the legal challenge.

Case Resolution Details

The court case, which was originally filed under Section 138 read with Section 141 of the Negotiable Instruments Act, 1881, has been officially closed. The matter was taken up before the National Lok Adalat on December 13, 2025, by the Judicial Magistrate (First Class), Court No. 73, Vikhroli, Mumbai.

Original Case Background

The legal action had stemmed from a dishonored cheque amounting to Rs. 11.72 lakh, which was issued as partial payment for outstanding dues totaling Rs. 22.42 lakh, plus interest. These dues were related to goods sold between August and November 2023. The company had received summons in November 2025 regarding this matter.

Court Proceedings and Outcome

During the National Lok Adalat proceedings, the complainant withdrew the complaint against Harish Textile Engineers Limited. As a result, the Honorable Court has acquitted the accused, cancelled any warrants issued earlier, and ordered closure of the proceedings. The order was made available on the official website of the concerned authority on December 15, 2025.

Impact Assessment

The company has confirmed that there is no material impact on the financials or operations of the company pursuant to the closure of the case. This resolution eliminates the legal uncertainty that had been hanging over the company since the original summons was received.

Regulatory Compliance

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Harish Textile Engineers Limited has made the required disclosure to BSE Limited. The disclosure was made in continuation of the company's earlier communication dated November 5, 2025, when the original summons was first reported.