Kallam textiles Limited has formally notified the Bombay Stock Exchange about an upcoming board meeting scheduled for February 14, 2026. The meeting will be held at the company's registered office located in Chowdavaram, Guntur District, Andhra Pradesh, in compliance with Regulation 29 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Key Agenda Items

The board meeting will address two primary business items along with other agenda matters:

Trading Window Restrictions

Kallam Textiles Limited has announced the closure of its trading window for designated persons dealing in the company's securities. The restriction will remain in effect until 48 hours after the declaration of financial results to the stock exchange, which is expected by February 16, 2026. This measure ensures compliance with insider trading regulations during the financial results announcement period.

Company Information

The textile manufacturer, formerly known as Kallam Spinning Mills Limited, operates under CIN L18100AP1992PLC013860 and trades on the Bombay Stock Exchange with scrip code 530201. The company maintains its registered office at Chowdavaram, Guntur, and holds ISO 9001 certification, reflecting its commitment to quality management standards.

Administrative Details

The official notice was issued on February 6, 2026, and signed by Golagani Ramesh Kumar, who serves as the Company Secretary and Compliance Officer. The communication was directed to the Department of Corporate Services at the Bombay Stock Exchange Limited, ensuring proper regulatory compliance and transparency in corporate governance practices.

Kallam Textiles Limited , a prominent textile manufacturer, is facing a significant legal challenge as the Andhra Pradesh High Court has issued a show cause notice in connection with a debt recovery case filed by Indian Bank. The case, which involves a substantial sum of Rs. 141.93 crore, has led to an interim stay on proceedings at the Debt Recovery Tribunal, potentially impacting the company's financial outlook.

Key Developments

1. Show Cause Notice: The Andhra Pradesh High Court has issued a show cause notice to Kallam Textiles Limited and its directors in response to a civil revision petition filed by Indian Bank.

2. Debt Recovery Amount: Indian Bank is seeking to recover Rs. 141,93,49,603 from Kallam Textiles and its directors.

3. Interim Stay: The High Court has granted an interim stay on all further proceedings in the Debt Recovery Tribunal case until the next hearing.

4. Respondents: The company and its directors have been named as respondents in the debt recovery matter.

Financial Implications

The debt recovery case comes at a challenging time for Kallam Textiles, as evident from its recent balance sheet data:

The company's financial position shows signs of stress:

1. Declining Assets: Total assets have decreased by 2.60% year-over-year.
2. Rising Liabilities: Current liabilities have increased significantly by 29.27%.
3. Shrinking Capital: Shareholders' capital has reduced by 28.68%.
4. Depleting Reserves: The reserve and surplus have diminished by 30.67%.

Potential Impact

1. Operational Challenges: The ongoing legal proceedings may divert management attention and resources from core business operations.
2. Financial Strain: If the debt recovery claim is upheld, it could significantly impact the company's already strained financial position.
3. Investor Confidence: The legal issue and financial stress may affect investor sentiment and potentially impact the company's stock performance.
4. Future Financing: The company might face challenges in securing additional financing or favorable terms for future loans.

Conclusion

The show cause notice and interim stay represent a critical juncture for Kallam Textiles Limited. The outcome of this legal proceeding could have far-reaching implications for the company's financial health and operational stability. Stakeholders, including investors and creditors, will be closely monitoring the developments in this case and its potential impact on the company's future prospects.

As the situation unfolds, it will be crucial for Kallam Textiles to address these financial and legal challenges while maintaining its business operations and stakeholder confidence.