Zuari Agro Chemicals Limited has informed the Exchange about interim order received from Regional Director, Western Region, Mumbai
ZUARI · price
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Zuari Agro Chemicals Limited has received four interim orders from the Regional Director, Western Region, Ministry of Corporate Affairs, Mumbai, in connection with compounding applications filed under Section 441 of the Companies Act, 2013. The orders relate to alleged non-compliances with accounting standards (IND AS-33, IND AS-36, IND AS-37) and Schedule III for financial years 2019-20 to 2022-23, involving issues like EPS disclosure, impairment assessment of investments, deferred tax assets, and legal/professional expense categorization. The company has stated these violations were unintentional and procedural in nature. Compounding fees totaling Rs. 66 lakhs have been levied on Executive Director, Promoter directors, CFO, and former directors/KMPs. The company confirms there is no material impact on its financials or operations.
The filing indicates a low-severity compliance matter. While compounding fees of Rs. 66 lakhs were imposed on individual directors/KMPs, the company itself faces no material financial impact. The stock is unlikely to see significant negative reaction given the procedural nature of the violations and the company's clarification that operations remain unaffected.