Quintegra Solutions Limited — Important, 26-08-2025: Disclosure of material issue

Quintegra Solutions is addressing its significant accumulated losses by proposing a capital reduction plan.

**The Issue:** The company has accumulated massive losses, totaling ₹178.12 Cr as of March 31, 2025. These losses originated primarily from ill-timed acquisitions worth ₹99 Cr in 2007-08, which were severely impacted by the global financial crisis, leading to bad debts and business setbacks. This negative financial history makes it challenging to attract new investors and raise funds for business revival.

**Company's Response/Mitigation Plan:** The board approved a plan (subject to shareholder and NCLT approvals) to drastically reduce these losses and clean up the balance sheet.

1. **Capital Reduction:** The face value of equity shares will be reduced from ₹10 to ₹1 each. This effectively lowers the paid-up equity share capital from ₹26.81 Cr to ₹2.68 Cr, freeing up ₹24.13 Cr.

2. **Loss Adjustment:** This ₹24.13 Cr will be used to reduce the accumulated losses.

3. **Reserve Utilization:** The remaining losses (₹153.99 Cr after the capital reduction) will be adjusted against existing reserves: ₹43.14 Cr from Share Premium, ₹4.95 Cr from General Reserve, and ₹90.22 Cr from Capital Reserve, totaling ₹138.31 Cr.

**Possible Impact:** After these adjustments, the company's accumulated losses will be reduced to just ₹15.68 Cr. This major cleanup of the balance sheet aims to make the company's financials look significantly healthier, removing the burden of past losses. This is a crucial step to attract new investors, raise necessary capital, and fund the company's planned business revival in the growing IT market. For existing shareholders, while the face value of their shares changes, the number of shares remains the same, and the market value of their holdings is determined by market dynamics, not directly by this accounting adjustment.