E-files Form RSC-1 with NCLT seeking sanction to set off accumulated losses via securities premium
Smartworks Coworking Spaces has e-shared Form RSC-1 with the NCLT, New Delhi Bench, seeking sanction to use INR 385.62 crore of its securities premium balance of INR 798.22 crore to fully set off accumulated losses of INR 385.62 crore as.
By ScoutQuest · · 2 min read
- Securities Premium Balance
- INR 798.22 crore
- Amount Proposed to be Utilised
- INR 385.62 crore
- Accumulated Losses Set Off
- INR 385.62 crore as on March 31, 2026
An application has been shared, not an approval received
- Smartworks Coworking Spaces Ltd has, on October 14, 2026, e-shared an application in Form RSC-1 with the Hon'ble National Company Law Tribunal, New Delhi Bench.
- The application seeks the tribunal's sanction for the proposed reduction of the company's Securities Premium Account, under Section 66 read with Section 52 of the Companies Act, 2013.
- The company had earlier informed the exchanges about this proposed reduction on August 24, 2026 and September 24, 2026.
- The company describes the proposal as a reduction of share capital, specifically of its Securities Premium Account.
What the proposed reduction involves
- The Securities Premium Account carries a balance of INR 798.22 crore.
- The company proposes to use INR 385.62 crore out of that balance.
- That amount is the same as its accumulated losses of INR 385.62 crore as on March 31, 2026, which would be fully set off.
- The stated objective is to eliminate such losses from its books of account and present a true and fair view of its financial position.
In simple terms
Securities premium is the amount a company receives over and above the face value of its shares when it issues them. It sits as a reserve in the accounts rather than as cash in the bank. Accumulated losses are losses of earlier years carried forward in the accounts. The proposal sets those accumulated losses off against the securities premium balance, which removes the losses from the books.
What a reader may take from it
- The proposal deals with accounting reserves and the accumulated losses shown in the books, rather than with the company's day-to-day operations.
- The company says the exercise would rationalise its balance sheet.
- The accumulated losses are of a size equal to the amount proposed to be used, so the set-off is described as full.
- The application is now before the tribunal, which will consider the proposal.
Also from Smartworks Coworking Spaces
Smartworks Coworking Spaces to hold Q2 FY2026-27 earnings conference call on 30 October 2026
6 Oct 2026
Board meeting on 30 October 2026 to consider and approve unaudited September quarter results
1 Oct 2026
Smartworks executive discussed the flexible workspace industry's growth and the company's contracted revenue reaching close to 6,000 crore rupees as of June 30th
30 Sep 2026
More numbers
- Amount proposed to be used from securities premium to set off lossesINR 3,85,61,76,525
- Balance in Securities Premium AccountINR 7,98,22,14,923
- Accumulated losses as on March 31, 2026INR 3,85,61,76,525
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