Shree Rama Newsprint & Papers Limited announced the disposal of equipment from its paper division on January 13, 2026, in compliance with SEBI Regulation 30. The company is disposing plant and machinery related to its paper division on a piecemeal basis to Bluecraft Agro Private Limited.

Transaction Details

The disposal involves equipment worth ₹2.00 crores plus applicable GST, with the sale agreement entered into on January 13, 2026. The transaction is expected to be completed by March 31, 2026.

Financial Impact of Paper Division

The paper division's contribution to the company's overall performance for the year ended March 31, 2025, shows modest revenue generation but significant other income contribution.

Related Party Transaction

The transaction qualifies as a related party transaction since Mr. Siddharth Chowdhary, Whole-Time Director of Shree Rama Newsprint Limited, is also a Director and shareholder of Bluecraft Agro Private Limited. The company has confirmed that the transaction is being conducted on an arm's length basis.

Regulatory Compliance

The disposal falls outside the Scheme of Arrangement, and the company has obtained necessary shareholder approvals. In a meeting held on September 26, 2023, shareholders approved the sale, lease, or disposal of the whole or substantially whole undertaking under Section 180(1)(a) of the Companies Act, 2013.

The company has duly complied with Regulation 37A of SEBI (LODR) Regulations, as public shareholders' votes in favour exceeded those against the resolution. The announcement was signed by Siddharth Chowdhary, Whole-Time Director, and communicated to both BSE Limited and National Stock Exchange of India Limited.

Shree Rama Newsprint & Papers , a company listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), has been penalized for a regulatory lapse in appointing a Company Secretary as Compliance Officer. The fine, totaling Rs. 28,320 (including 18% GST), was imposed by both stock exchanges due to a 24-day delay in the appointment, as required under Securities and Exchange Board of India (SEBI) regulations.

Regulatory Non-Compliance and Company's Response

The company's Board of Directors has acknowledged the non-compliance with Regulation 6 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. In a statement to the stock exchanges, Shree Rama Newsprint & Papers confirmed:

1. The payment of the fine to both BSE and NSE.
2. A directive to the management to ensure timely statutory compliance in the future.

This incident underscores the importance of adhering to regulatory timelines and the potential financial consequences of non-compliance.

Financial Performance Context

While this regulatory issue is a concern, it's worth noting the broader financial context of Shree Rama Newsprint & Papers. According to the company's recent financial results:

The company has reported a significant comprehensive loss, indicating ongoing financial challenges. This regulatory fine, while relatively small in comparison to the overall financial picture, adds to the company's financial burdens.

Going Concern and Future Outlook

Shree Rama Newsprint & Papers' financial statements reveal material uncertainty about its ability to continue as a going concern. The company's current liabilities exceed its current assets by Rs. 10,165.20 lakhs as of September 30, 2025. However, management remains committed to continuing operations, citing plans to dispose of certain non-core assets and explore funding options to strengthen the working capital position.

The recent regulatory fine, while not substantial in amount, highlights the need for improved compliance processes within the company. As Shree Rama Newsprint & Papers navigates its financial challenges, maintaining regulatory compliance will be crucial to avoid additional penalties and maintain investor confidence.

Investors and stakeholders should closely monitor the company's progress in addressing both its financial situation and regulatory compliance in the coming months.