Morarjee Textiles Limited referred to its earlier disclosure dated 29 April, 2023 to the exchanges under Regulation 30 of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 informing to the Exchanges about disruption of work and later of Strike at the Company's plant at Nagpur effective from April 17, 2023, due to which majority of the operations at the plant came to a halt. Further, the Company in its outcome for Board Meetings for financial results has regularly disclosed that there have been continuous delays and defaults in repayment of debt obligations as the company as delay in other payments. The loan account of the Company is classified as NPA by lenders and majority of the lenders have served notice for recall /taken legal recitsse against the Company, requiring repayment of the loan.

One of the financial creditor has filed an application before National Company Law Tribunal, Mumbai under Section 7 of Insolvency and Bankruptcy Code, 2016 for initiating Corporate Insolvency Resolution Process against the Company. The matter came up for hearing before the Tribunal on June 27, 2023 and after hearing the parties, it has been reserved for Order. The Bank/s since then are not allowing any withdrawals from the Company's Bank Account/s. With no withdrawals being permitted from Bank Accounts, the company is unable unable to make any payments including those for critical services.

Consequent to the above the operations of the Company are completely at halt.