The Exchange had sought clarification from Vardhman Special Steels Limited for the quarter ended 31-Mar-2025 with respect to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. On basis of above the Company was required to clarify the following: -1. Financial results submitted is not as per format prescribed by SEBI The response of the Company is enclosed.
VSSL · price
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NSE asked Vardhman Special Steels to explain why its standalone and consolidated financial results for the quarter ended 31 March 2025 showed identical figures, which was not in the SEBI-prescribed format. The company clarified that it holds a 26% stake in Sone Solar Private Limited, classified as an associate under Ind AS 109 using the equity method. Since the company is not entitled to any dividend or profit distribution from Sone Solar and holds a put option exercisable at the end of 18 years at fair market value (at least equal to the original investment), it is not recording any downside from the associate's losses or upside until the option is exercised. As a result, there is no material difference between the consolidated and standalone numbers, which explains the identical figures.
This is a technical clarification on accounting presentation, not a penalty or adverse action. The put option structure effectively insulates the company from the associate's losses, but also delays any potential gains for 18 years. For shareholders, this means no immediate earnings impact from the Sone Solar investment, and the matter with the exchange appears to be a routine format-related query being resolved.