Company has received Show Cause Notices from Registrar of Companies, Telangana for E-Adjudication for Defaults under Section 42(10) of the Companies Act, 2013
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▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Digilogic Systems Ltd has received Show Cause Notices from the Registrar of Companies (ROC), Telangana regarding defaults under Section 42(10) of the Companies Act, 2013, linked to 3 private placements made during FY 2024-25. The potential penalty is Rs. 2 crores for the company and Rs. 2 crores each for every director per private placement, though the exact financial impact is yet to be quantified. Importantly, the company had already identified these procedural lapses during an internal review and voluntarily filed Adjudication Applications (GNL-1) on December 30, 2025, even before filing its RHP, where the matter was disclosed as a Risk Factor. The company states there is no material impact on its operations or other activities, and it plans to file a reply and represent itself in the adjudication process.
This is a pre-existing compliance issue that was already flagged in the company's RHP during its IPO, so the market may have partially priced it in. While potential penalties could be significant, the company's proactive voluntary disclosure and the absence of any material operational impact suggest limited long-term damage, though investors should watch for the final adjudication outcome.