Zuari Agro Chemicals Limited has informed the Exchange about Interim Order Received from Regional Director, Western Region-I, Mumbai
ZUARI · price
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Zuari Agro Chemicals Limited has received an Interim Order from the Ministry of Corporate Affairs regarding a compounding application. The order relates to alleged non-compliance with accounting standards (IND AS-36) concerning impairment assessment of the company's investment in Mangalore Chemicals & Fertilizers Limited for fiscal years 2019-20 to 2022-23. The violation falls under Section 129 of the Companies Act, 2013. The company states there is no material financial or operational impact. However, compounding fees totaling Rs. 22.25 lakhs have been levied on the Executive Director, Promoter directors, Directors, and KMPs (including former ones), not on the company itself.
This is a regulatory compliance matter with minor financial implications. The company faces no direct penalty, but directors and KMPs must pay Rs. 22.25 lakhs in compounding fees. No material impact on company financials is expected.