Telogica Limited , a company listed on the Bombay Stock Exchange (BSE), has taken a significant step in restructuring its shareholding pattern. The company has submitted an application to the BSE for the reclassification of 14 individuals from the 'Promoter category' to the 'Public category'. This move, involving a total of 10,99,281 shares representing 4.60% of the company's equity, marks a notable shift in the company's ownership structure.

Key Details of the Reclassification

The application, submitted on December 19, 2023, follows a series of corporate actions and share transactions. Here's a breakdown of the key individuals involved and their shareholdings:

Recent Share Transactions

The reclassification application comes in the wake of several significant share transactions:

1. Chilakapati Peda Bapulu sold 50,000 shares on September 5, 2024, followed by another 1,74,329 shares on September 9, 2024.
2. The shares of Amulya Reddy Gangavaram and Rama Manohar Reddy Gangavaram were acquired by Srinivasa Rao Mandava through a Share Purchase Agreement dated August 4, 2022.

Regulatory Compliance and Disclosure

In its disclosure, Telogica Limited acknowledged a delay in reporting these changes as required by Regulation 31A(8)(c) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company attributed this delay to a lack of awareness of specific regulatory requirements and assured that there was no mala-fide intention behind the oversight.

D. Venkateswara Rao, Whole-Time Director & CFO of Telogica Limited, signed the disclosure, expressing regret for the delayed reporting and committing to strengthen the company's compliance framework to prevent such occurrences in the future.

Implications and Next Steps

This reclassification, if approved by the BSE, will result in a significant reduction of the promoter group's shareholding in Telogica Limited. It reflects a shift in the company's ownership structure and could potentially impact its governance and decision-making processes.

Investors and market watchers will be keenly observing the BSE's decision on this application and its potential implications for Telogica Limited's stock performance and corporate governance structure.

Telogica Limited , a technology company, has reported its unaudited financial results for the quarter and half-year ended September 30, 2023, revealing a mixed financial picture with both improvements and ongoing challenges.

Financial Performance

Telogica Limited posted a profit of ₹285.48 thousand for the period, marking a significant turnaround from the ₹10.75 million loss reported in the previous year. This positive shift in profitability comes despite revenue from operations remaining relatively stable at ₹44.29 million, compared to ₹44.44 million in the prior period.

Liquidity Improvement

The company's cash position saw a substantial improvement, with cash and cash equivalents rising to ₹17.52 million from ₹2.06 million previously. This increase in liquidity could provide some breathing room for the company's operations.

Ongoing Financial Challenges

Despite the profit reported this quarter, Telogica Limited continues to face significant financial hurdles:

• Net Worth Erosion: The company's net worth has been completely eroded due to continuous losses, resulting in a negative equity of ₹30.84 million.
• Increased Liabilities: Current liabilities have risen to ₹319.84 million from ₹256.99 million, indicating growing short-term obligations.
• Inventory Build-up: Inventories have increased to ₹72.54 million from ₹39.28 million, which could impact cash flow if not converted to sales efficiently.

Regulatory Concerns

The auditor's review has highlighted serious concerns regarding outstanding statutory dues:

• Total outstanding dues amount to ₹21.30 million
• These include payments for Provident Fund (PF), Employee State Insurance (ESI), Tax Deducted at Source (TDS), Goods and Services Tax (GST), and Professional Tax (PT)

The presence of these unpaid statutory dues raises questions about the company's compliance with regulatory requirements and its ability to meet financial obligations.

Conclusion

While Telogica Limited has managed to turn a profit this quarter, the company's financial health remains precarious. The complete erosion of net worth, increasing liabilities, and outstanding statutory dues present significant challenges that the management will need to address. Stakeholders will likely be watching closely to see if the company can sustain its profitability and resolve its financial and regulatory issues in the coming quarters.