PFL Infotech has announced a significant restructuring plan to write off Rs 784.55 lakh in accumulated losses. The board proposes a 99% reduction in paid-up capital, resulting in a 1:100 share consolidation. The company, which reported zero revenue for FY2025-26, is also shifting its registered office from Telangana to Maharashtra under new management.
PFL Infotech Proposes 99% Capital Reduction
Revenue stood at Rs 0.00 lakh for FY2025-26 with a net loss of Rs 34.75 lakh.
Reader Takeaway: Capital reduction aims to clean the balance sheet; tax arrears and loan recovery delays pose risks.
What just happened
PFL Infotech has proposed a 99% reduction in its paid-up share capital to address accumulated losses totaling Rs 784.55 lakh as of March 31, 2026. The plan involves reducing paid-up capital from Rs 747.81 lakh to Rs 7.4781 lakh. Under this scheme, existing shareholders will receive one equity share for every 100 shares currently held. The proposal is slated for consideration at the AGM on September 26, 2026.
Why this matters
The company has reported zero income for consecutive financial years and continues to face consistent annual losses of Rs 34.75 lakh. New management, which took control in 2024, intends to use this capital restructuring to reflect the "true financial status" of the firm while preparing to raise fresh funds and diversify business activities.
Governance and Risks
Auditors have raised concerns regarding the company’s inability to meet loan repayment schedules and the non-payment of income tax arrears dating back to FY 2015-16. Furthermore, management is currently focused on recovering outstanding loans, a process which remains a critical watch point for investors.
What changes now
Alongside the capital reduction, the company is shifting its registered office from Telangana to Maharashtra. Statutory auditors, Pavuluri & Co., have been appointed for a five-year term, and Mr. Parma Nand Chand has been appointed as the new Managing Director to lead the turnaround efforts.