Kirloskar Electric Company Ltd

Tax Show Cause Notice (Audit 6.4)

• Company received a Show Cause Notice in Form DRC-01 under KGST/CGST/IGST.
• Demanded amount is Rs 12,56,693 comprising tax Rs 7,61,000 and interest Rs 4,95,693.
• Audit period covered: April 2022 to March 2023.
• Date of notice: September 29, 2026.
• Authority: Deputy Commissioner of Commercial Taxes (Audit) – 6.4.
• Impact: no material impact beyond the demand; company may contest.

Kirloskar Electric Company Limited — Trading Window closed from October 01, 2026 till 48 hours after the declaration of Ind-AS compliant standalone & consolidated unaudited financial results for the quarter and half year ended September 30, 2026.

Key board actions

• Approved preferential allotment of 34,68,007 equity shares to Kirloskar Power Equipments Limited at ₹115.34 per share.
• Post-issue promoter holding rises to 46,14,322 shares (6.60%).
• Closure of Master Restructuring Agreement with Bank of India and consortium lenders, exiting arrangement with no negative impact.

Key approvals and terms

• In-principle approvals from BSE and NSE for preferential issue to Kirloskar Power Equipments Limited.
• Issue size: 34,68,007 equity shares of Rs 10 each.
• Promoter group: Kirloskar Power Equipments Limited.
• Floor price: Rs 115.34 per share.
• Total consideration approx Rs 40 crore.
• Listing application to be filed earliest from allotment; regulatory approvals required.
• Internal controls advised to monitor trades by allottees.
• Undertaking required to prevent intra-day trading until allotment.
• Issuer responsible for ICDR Regulation 167(6) compliance.
• Approvals dated September 21, 2026.

Consolidation of preferential issue objects

• Board approved consolidating preferential issue objects into a single use for working capital, ₹39,99,99,927.38.
• Consolidation follows NSE observations on the IPA application for the proposed preferential issue.
• Aggregate amount, issue price, and number of securities remain unchanged.

Senior Management Resignations

• Mr. Arunesh M, Sr. Vice President - Operations (Mysore Unit), has submitted his resignation.
• Mr. Yathiraj B.L., Vice President - Oil Filled Transformers Division, has submitted his resignation.

AGM Details

• AGM held on August 13, 2026 via Video Conferencing / Other Audio Visual Means.
• Voting eligibility cut-off date: August 6, 2026.

Key Resolutions and Outcomes

• Resolution 1 (Ordinary): Adoption of audited standalone and consolidated financials for FY2025-26; passed.
• Resolution 2 (Ordinary): Re-appointment of Rukmini Kirloskar; passed.
• Resolution 3 (Special): Re-appointment of Vijay R Kirloskar as Executive Chairman; passed.
• Resolution 4 (Ordinary): Janaki Kirloskar appointed as Director; passed.
• Resolution 5 (Special): Janaki Kirloskar appointed as Joint Managing Director; passed.
• Resolution 6 (Ordinary): BMS Auditing appointed as branch auditor for Ajman, UAE; passed.
• Resolution 7 (Ordinary): Ratify remuneration of Cost Auditors for FY ending 31-03-2026; passed.
• Resolution 8 (Special): Raise funds via preferential issue to Kirloskar Power Equipments Limited; passed.

Dividend

• No dividend proposed or declared at this AGM.

Director Changes

• Rukmini Kirloskar retires by rotation; re-appointment proposed.
• Janaki Kirloskar appointed as Director; also appointed Joint Managing Director.
• Vijay R Kirloskar re-appointed as Executive Chairman (Whole-time Director).

Auditors and Remuneration

• BMS Auditing appointed as branch auditor for Ajman, UAE.
• Remuneration of Cost Auditors for FY2025-26 ratified.

Related Party Transactions

• Promoter-group related party transaction: preferential issue and allotment of equity to Kirloskar Power Equipments Limited.