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.

NCD Series Performance Overview

Stakeholder Engagement and Resolution Efforts

The company has scheduled a meeting of NCD holders for December 22, 2025, which will be an adjourned meeting conducted by the Debenture Trustee. The meeting will discuss the delay in redemption and proposed settlement options for both Series III and Series IV NCDs. Harish Textile Engineers has committed to continue coordinating with the Debenture Trustee and NCD holders to arrive at a suitable resolution.

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 Limited , a company listed on the Indian stock exchanges, has received a legal notice from one of its suppliers, Electrosil 14 Systems. The notice alleges that the company has defaulted on Non-Convertible Debentures (NCDs) worth Rs. 9,25,000 and dishonored cheques.

Details of the Legal Notice

The legal notice from Electrosil 14 Systems includes the following key points:

Company's Response

Harish Textile Engineers has acknowledged the receipt of the legal notice and provided the following statement:

1. The matter is currently under legal review.
2. The company maintains that at this stage, there is no material impact on its financial or operational activities.

Implications and Next Steps

While the company asserts that there is no material impact at present, the situation warrants attention from investors and stakeholders. Legal notices of this nature can potentially lead to further legal proceedings if not resolved satisfactorily.

It's important to note that the company's statement about the lack of material impact is based on their current assessment. As the situation develops, there may be updates or changes to this stance.

Investors and interested parties should keep an eye out for any further announcements or disclosures from Harish Textile Engineers Limited regarding this matter. The resolution of this issue, whether through payment, legal proceedings, or other means, could have implications for the company's financial standing and reputation.

As always, it's advisable for investors to consider such developments in the context of their overall investment strategy and risk tolerance.