Board accords consent, Audit Committee recommends sale of 17.92-acre property for Rs. 2,15,04,000

Audit Committee recommended and the Board accorded consent for the sale of the company's immovable property of 17.92 Acres at K Krishnapuram Village, Palladam Taluk, Tiruppur District.

Tue 6 Oct 2026

Consideration

Rs. 2,15,04,000

Property Area

17.92 Acres

Buyer

M/s Vanam Realty and Farmlands Private Limited (related party)

Sale of immovable property approved by the Board and the Audit Committee

The company informed the exchange that its Board of Directors, at a meeting held on 06.10.2026, accorded its consent for the sale of an immovable property of the company. The Audit Committee, at its meeting held the same day, took note of the proposal and recommended the disposal to the Board.

The property

• Survey numbers 124/1B, 124/2, 124/3 and 123/2B
• Area: 17.92 Acres
• Location: K Krishnapuram Village, Palladam Taluk, Tiruppur District
• Consideration: Rs. 2,15,04,000 (Rupees Two Crore Fifteen Lakh Four Thousand only)

The sale is to be on such terms and conditions as may be mutually agreed upon and as may be finalised by the authorised officials of the company.

Who is buying

The purchaser is M/s Vanam Realty and Farmlands Private Limited. The update states that the purchaser is a related party of the company and that the transaction shall be subject to the applicable provisions relating to Related Party Transactions, including obtaining such prior approvals as may be required under applicable law.

Who has been authorised to act

• The Board authorised Mr. P. Palaniappan (DIN - 01577805), Managing Director, to negotiate and finalise the terms and conditions of the transaction and to execute the sale agreement, conveyance deed, transfer documents and other agreements and documents needed to complete the disposal.
• He is also authorised to receive the sale consideration on behalf of the company.
• He is further authorised to make the necessary updates, disclosures and intimations with the Registrar of Companies, stock exchanges and any other regulatory authority.
• The Audit Committee recommended that the Board of Directors be authorised to finalise the consideration, terms and conditions and execute the necessary agreements, deeds and documents.

What the update says about shareholder approval

The Audit Committee, and separately the Board, noted that based on the particulars and information placed before them, the proposed disposal does not constitute the sale, lease or disposal of the whole or substantially the whole of an undertaking of the company within the meaning of Section 180(1)(a) of the Companies Act, 2013, and accordingly approval of the members by way of special resolution under that provision is not required, subject to the applicable statutory thresholds and the facts and circumstances of the transaction.

What this means in simple terms

The company owns a plot of land of 17.92 Acres in Tiruppur District and has approved selling it to M/s Vanam Realty and Farmlands Private Limited for Rs. 2,15,04,000. Both the Audit Committee and the Board have recorded their approval, and the Managing Director has been given the powers to negotiate, sign the papers and receive the money. Since the buyer is a related party, the transaction will follow the related party transaction rules, which can involve additional prior approvals. The company has recorded its view that this sale is not of the whole or substantially the whole of its undertaking, so a special resolution of shareholders under Section 180(1)(a) is not required. For a retail investor, the checkpoints are the consideration of Rs. 2,15,04,000 against the 17.92 Acres being sold, the related party status of the buyer, and the approvals the transaction still requires.

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