Prozone Realty Limited has announced two significant corporate actions approved by its Board of Directors.

New Wholly-Owned Subsidiary

The Board has given the green light for incorporating a new wholly-owned subsidiary named Prozone Arcade Pvt Ltd. The company will invest Rs 1.00 lakh in cash for 10,000 equity shares of Rs 10.00 each in the new entity. Prozone Arcade will operate in the construction and real estate sectors, expanding Prozone Realty's presence in these areas.

Promoter Group Reclassification

In a move that could impact the company's shareholding structure, the Board has approved requests from certain promoter group members to be reclassified into the public shareholder category. The reclassification, subject to regulatory and shareholder approvals, involves the following individuals and entities:

• Ghanshyam Rawat
• Vandana Vaidh (holding 1,620 shares)
• Pushpalata Rawat
• Rakesh Rawat Family Trust (holding 35,85,796 shares, representing a 2.35% stake)

The applicants have confirmed compliance with regulatory conditions, including:

• Holding less than 10% voting rights
• Not exercising control over the company
• No special rights through formal or informal arrangements
• No representation on the board of directors

Regulatory Compliance

The reclassification is pending approvals from stock exchanges, shareholders, and other required authorities. This move aligns with SEBI regulations on promoter reclassification and could potentially impact the company's shareholding pattern.

Prozone Realty's actions reflect ongoing corporate restructuring efforts, potentially aimed at streamlining operations and shareholding structure. Investors and market watchers will be keen to see how these changes may impact the company's future strategies and governance.

Prozone Realty Limited has announced its financial results for the quarter ended September 30, showcasing a significant improvement in profitability despite a slight dip in revenue.

Key Financial Highlights

• Net Profit: The company reported a consolidated net profit of Rs 341.92 lakhs for the quarter, marking a substantial increase from Rs 39.41 lakhs in the same quarter last year.
• Revenue: Consolidated revenue from operations stood at Rs 4,618.77 lakhs, down 5.5% from Rs 4,885.72 lakhs in the corresponding quarter of the previous year.

Operational Updates

Management Changes

• The Ministry of Corporate Affairs rejected the company's application for re-appointment of its Deputy Managing Director under Section 196 of the Companies Act, 2013.
• The rejected director ceased to hold the position and was redesignated as Non-Executive Director.
• Prozone Realty is evaluating legal recourse and determining action for Rs 682.00 lakhs in remuneration and salary advances paid to the director from February 27, 2020 till the rejection order date.

Subsidiary Update

Hagwood Commercial Developers Private Limited, a subsidiary of Prozone Realty, continues to contest the cancellation of aviation clearance for its Nagpur residential project. The management believes the chances of revalidation are high based on recent court orders.

Financial Table

The company has shown significant improvement in profitability amid revenue challenges, indicating a complex operating environment.