Disclosures for NCLT order for approval of scheme of capital reduction and capital reserves of the Company
Awaiting price reaction for this filing.
The NCLT Ahmedabad Bench, via its order dated March 26, 2026, has approved Charms Industries' scheme to reduce its paid-up equity share capital from INR 4,10,61,000 (41,06,100 shares of INR 10 each) to INR 41,06,100 (41,06,100 shares of INR 1 each). The reduction of INR 3,69,54,900 represents capital that has been lost or is unrepresented by tangible assets. The tribunal also allowed the company to cancel its capital reserve account of INR 31,46,530, with the total adjustment of INR 4,01,01,430 to be written off against the debit balance of the Profit & Loss Account. No cash or kind consideration is payable to shareholders, and the number of shares remains unchanged. The company notes it was previously on the vanishing companies watchlist but has been regularly filing returns; RBI had also cancelled its Full-Fledged Money Changer license in July 2021.
Each share's face value falls from Rs 10 to Rs 1, but share count and proportionate ownership stay the same, so this is largely a balance sheet cleanup rather than value loss for shareholders. The move writes off accumulated losses and capital reserves, which may help present a cleaner financial position going forward. Investors should note the company's past flagging as a vanishing company and loss of its money-changing license as risk factors.