Kallam Textiles: NCLT Admits Insolvency Petition, CIRP Initiated

Kallam Textiles Limited has announced that the National Company Law Tribunal (NCLT), Amravati Bench, admitted a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC). Consequently, Corporate Insolvency Resolution Process (CIRP) has been initiated against the company. As per IBC provisions, the powers of the Board of Directors are suspended and are now exercised by the Resolution Professional. The company has submitted its financial results for the quarter and year ended March 31, 2026, along with an audit report. However, the auditors have issued a Disclaimer of Opinion due to significant matters, stating they could not obtain sufficient appropriate audit evidence to provide an opinion on whether the financial results are presented in accordance with listing regulations or give a true and fair view. Further proceedings have been stayed by NCLAT pending consideration of a restructuring proposal.