Kohinoor Foods Limited , a prominent player in the Indian food industry, has recently come under regulatory scrutiny. The company has disclosed that it has received a summon from the Directorate of Enforcement (ED), Ministry of Finance, Government of India, under sections 37(1) and (3) of the Foreign Exchange Management Act (FEMA).

Details of the Summon

The summon, issued by the ED's Gurgaon Zonal Office in Gurugram, requires Kohinoor Foods to produce various documents related to its operations. The company has been instructed to present these documents either in person or through a representative before the authorities.

Address Discrepancy

Interestingly, the summon was addressed to the Director of Kohinoor Foods Limited at an address in Manesar, Gurgaon. However, the company has clarified that it does not operate from the mentioned address: Ground Floor, G-31, Sector 8, Aliyar Bas Hgriya MT, Manesar, Gurgaon 122052.

Company's Response

In response to this development, Kohinoor Foods has stated that its Director or a representative is preparing to appear before the authorities and submit the required documents in due course. The company seems to be cooperating with the investigation, although the nature and scope of the inquiry remain undisclosed at this time.

Regulatory Compliance

This summon falls under the purview of the Foreign Exchange Management Act, which suggests that the investigation may be related to the company's foreign exchange transactions or overseas operations. FEMA regulations are designed to facilitate external trade and payments while promoting the orderly development and maintenance of India's foreign exchange market.

Market Impact

As of now, the full implications of this regulatory action on Kohinoor Foods' operations and market standing are unclear. Investors and stakeholders will likely be watching closely for any further developments or disclosures from the company regarding this matter.

Kohinoor Foods Limited has duly informed the stock exchanges about this development, in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This transparency in reporting is crucial for maintaining investor trust and adhering to regulatory standards.

As the situation unfolds, more details may emerge about the nature of the documents requested and the specific areas of interest for the Enforcement Directorate. For now, the food industry and market observers will be keenly awaiting further updates on this regulatory inquiry into one of India's well-known food companies.

Kohinoor Foods Limited , a prominent player in the Indian food industry, has made a significant corporate move by approving the sale of one of its factory units for ₹190.00 crore. This decision, announced in a recent board meeting, marks a pivotal moment for the company as it navigates financial challenges and restructures its operations.

Key Details of the Sale

The factory unit slated for sale is located at 50-51 Milestone, G.T. Karnal Road, Murthal, Sonepat (Haryana)-131027. The buyer has been identified as M/s. RCM Consumer Products Private Limited, an independent entity not related to Kohinoor Foods' promoter or promoter group.

Financial Implications

The sale of this unit carries significant weight in Kohinoor Foods' financial structure:

This transaction underscores the substantial role the unit played in the company's operations, contributing to over 100% of the previous year's turnover.

Rationale Behind the Sale

Kohinoor Foods' decision to sell this factory unit is rooted in its efforts to address financial challenges:

1. The company has been declared a Non-Performing Asset (NPA) by banks since May 2018.
2. A petition under Section 7 of the Insolvency and Bankruptcy Code (IBC) has been filed by the lead banks.
3. The sale is part of a One Time Settlement (OTS) approach with the banks to satisfy financial commitments.

Corporate Governance and Compliance

The board of directors approved this transaction on February 14, 2025, with subsequent agreements dated March 26, 2025, and March 31, 2025. Shareholder approval for the sale was obtained on April 21, 2025, through a postal ballot meeting held on April 29, 2022.

Impact on Shareholding and Listing

Kohinoor Foods has confirmed that this transaction will not result in any changes to its shareholding pattern. The company also clarified that no listing is being sought for the transferee company.

Management Changes

Concurrent with this significant asset sale, Kohinoor Foods announced changes in its key management personnel:

• Mr. Chashu Arora resigned as CFO, effective March 24, 2025.
• Mr. Pradeep Goswami, a Chartered Accountant, has been appointed as the new CFO, effective April 1, 2025.

Conclusion

This strategic move by Kohinoor Foods to sell a major factory unit represents a critical step in the company's efforts to address its financial obligations and potentially streamline its operations. As the food industry continues to evolve, stakeholders will be watching closely to see how this decision impacts Kohinoor Foods' future performance and market position.