Kallam Textiles Limited , a prominent player in the textile industry, has recently disclosed a significant development that could impact its financial standing. The company has received a notice from Union Bank of India regarding the potential sale of its assets under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002.

Key Points of the Notice

• Issuing Bank: Union Bank of India
• Legal Framework: SARFAESI Act, 2002
• Specific Rules: Sale procedures under rule 6(2)/8(6) of the Security Interest (Enforcement) Rules, 2002

This notice marks a critical juncture for Kallam Textiles, as it indicates that the company may be facing financial challenges that have led to this action by Union Bank of India.

Company's Response

Kallam Textiles has taken prompt action in response to this development:

1. Disclosure to BSE: The company has formally disclosed this information to the Bombay Stock Exchange (BSE), adhering to regulatory requirements.
2. Commitment to Transparency: Management has stated that they will provide updates on any further developments related to this matter.

Implications and Outlook

The receipt of this notice under the SARFAESI Act suggests that Kallam Textiles may be experiencing difficulties in meeting its debt obligations to Union Bank of India. This situation could have several potential outcomes:

1. Asset Sale: If the company fails to address the issues raised, it may lead to the sale of certain assets to recover the bank's dues.
2. Debt Restructuring: There's a possibility that the company might negotiate with the bank for a debt restructuring plan.
3. Operational Impact: Depending on the assets involved, this development could affect the company's operations and future financial performance.

Investors and stakeholders of Kallam Textiles Limited should closely monitor further announcements from the company regarding this matter. The management's approach to addressing this situation and any subsequent negotiations with Union Bank of India will be crucial in determining the company's financial trajectory.

Kallam Textiles Limited, a prominent player in the textile industry, has recently encountered a significant development concerning its Hydel unit in Telangana. The company has disclosed crucial information that may impact its operations and stakeholders.

Possession Notice Served

Kallam Textiles Limited received a possession notice from Union Bank of India for its Hydel unit. The unit in question is located in Nelakondapalli, Khammam, Telangana. This notice was served under Section 13 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, read in conjunction with Rule 8 of the said rules.

Company's Response

In compliance with regulatory requirements, Kallam Textiles has promptly informed the stock exchange about this development. The company, in its communication, stated that it would provide updates on any further developments related to this matter. This proactive approach aligns with the transparency expected of listed entities.

Regulatory Compliance

The intimation was made pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Additionally, it adheres to SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023, and the company's internal Policy on Determination of Materiality for Disclosure of Events or Information.

Details of the Notice

According to the LODR data, the possession notice was specifically served at the Hydel unit located in Nelakondapalli, Khammam, Telangana-507160. The company has also mentioned that a detailed copy of the notice served by Union Bank of India has been attached for reference.

Management Statement

Golagani Ramesh Kumar, the Company Secretary & Compliance Officer of Kallam Textiles Limited, signed the official intimation to the stock exchange. The company has committed to keeping the Exchange informed about any further developments regarding this matter.

Implications and Outlook

While the full implications of this possession notice are yet to be determined, it represents a significant event for Kallam Textiles Limited. Stakeholders and investors will likely be watching closely for any updates or resolutions regarding the Hydel unit's status and its potential impact on the company's operations.

As the situation unfolds, Kallam Textiles Limited's management appears to be maintaining a stance of transparency and regulatory compliance, which is crucial in navigating such challenges in the corporate landscape.