Venlon Enterprises Limited has scheduled its 42nd AGM for September 18, 2026, to approve a critical Rs 90 crore asset sale. The company, which permanently closed trading operations in December 2025, is operating on an 'Other than Going Concern' basis due to net worth erosion. Shareholders will vote on asset disposal, related party transactions, and director reappointments as part of the company's planned wind-down strategy to settle outstanding liabilities.
Venlon Enterprises to Wind Down Operations via Rs 90 Crore Asset Sale
Loss for the Year: Rs 337.91 Lakhs (FY 2026); Proposed Asset Sale: Rs 90 Crore.
Reader Takeaway: The firm is liquidating assets to settle liabilities following the permanent closure of all trading operations.
What just happened
Venlon Enterprises Limited has issued a notice for its 42nd Annual General Meeting, set for September 18, 2026, in Mysuru. The primary agenda focuses on formalizing the company’s exit strategy. Shareholders are being asked to authorize the disposal of substantially the whole of the company’s undertaking for an estimated consideration of Rs 90 crore. This move is designed to realize value from remaining assets to satisfy outstanding debts.
Why this matters
The company has officially declared it is no longer a 'Going Concern.' Trading operations were permanently shut down on December 31, 2025, following a significant erosion of net worth. Investors are now focused on the liquidation process and the fair distribution of proceeds from the asset sales to discharge liabilities.
Related Party Transactions
The management is seeking shareholder approval for three major related party arrangements for the coming two financial years:
- Dechem Resins Limited: Goods and services transactions up to Rs 10 crore annually.
- Krishna Enterprises Limited: Resource transfers and loans up to Rs 105 crore.
- Father & Son Investment Private Limited: Real estate divestment (land and building) up to Rs 15 crore.
Governance and Management
The company board underwent changes during the fiscal year, with the resignation of Mr. H.K. Nagendra and Mr. Sreedhar Nagaraju. New independent directors, Ms. Madhura Haldodderi Govindarao and Mr. Devaraja Murthy Nagarle Kempadevanna, were appointed. The statutory auditor, M/s. Laxminiwas and Co., has issued an unmodified report.
Context metrics
Revenue for FY 2026 fell to Rs 794.25 lakhs from Rs 1,151.73 lakhs in the previous year. The company reported a loss before tax of Rs 337.91 lakhs for FY 2026, an improvement over the Rs 1,317.98 lakhs loss reported in FY 2025.