Gravity (India) Limited has secured a crucial regulatory milestone by obtaining in-principle approval from BSE Limited for its proposed rights issue of fully paid-up equity shares. The company announced this development through a regulatory filing dated March 17, 2026, marking a significant step forward in its capital raising initiative.

BSE Approval Details

The approval was granted through BSE's official communication dated March 16, 2026, with reference number LOD/RIGHT/HC/FIP/1893/2025-26. This follows the company's initial application submitted to the exchange on February 25, 2026.

Exchange Permissions and Conditions

BSE Limited has granted permission for the company to use the exchange's name in its Letter of Offer for the rights issue. However, this permission comes with specific conditions that must be strictly adhered to:

• Disclaimer Requirements: The company must include BSE's mandatory disclaimer clause in its Letter of Offer after SEBI's disclaimer clause
• Advertisement Compliance: All advertisements related to the rights issue mentioning BSE's name must carry the prescribed disclaimer
• Record Date Notice: A record date must be fixed with at least three working days advance notice to the exchange
• Price Disclosure: The rights issue price must be disclosed at least three working days prior to the record date

Regulatory Compliance Framework

The exchange has outlined comprehensive compliance requirements that Gravity India must fulfill before proceeding with the rights issue. These include completing all legal and statutory formalities, ensuring proper disclosure in offer documents, and taking full responsibility for any consequences arising from non-disclosure or misstatement of information.

Key Compliance Requirements:

• Confirmation of Letter of Offer posting completion
• Agreements with all depositories for dematerialization of securities
• Basis of Allotment approval from the Designated Stock Exchange
• Appointment of qualified Company Secretary as Compliance Officer
• Payment of all applicable exchange charges

Company Leadership

The regulatory filing was signed by Mukesh Mahendrabhai Parmar, Managing Director of Gravity (India) Limited, with DIN: 11473295. The digital signature was applied on March 17, 2026, confirming the company's formal acknowledgment of the BSE approval.

Exchange Disclaimer and Investor Advisory

BSE Limited has clearly stated that its permission should not be construed as clearance or approval of the Letter of Offer. The exchange explicitly disclaims any warranty regarding the correctness or completeness of the offer contents and does not take responsibility for the company's financial soundness or management decisions. Investors are advised to conduct independent inquiry and analysis before making any investment decisions.

Gravity (India) Limited has recently responded to six auditor qualifications in its Limited Review Report for the quarter ended September 30. The company's management has provided explanations and outlined corrective measures for various financial reporting and compliance issues raised by the auditors.

Key Auditor Qualifications and Management Responses

Management's Commitment to Compliance

The company has stated that it has initiated necessary steps to address these non-compliances and expects to complete the compliance processes in due course. Management emphasized that:

1. Appropriate accounting treatments have been applied in the books of account.
2. All necessary disclosures have been made in the financial statements.
3. The company remains committed to maintaining compliance with statutory requirements.
4. Transparent financial reporting is a priority for the management.

Implications for Investors

These auditor qualifications and management responses highlight several areas of concern in Gravity (India) Limited's financial reporting and compliance practices. Investors should consider the following:

1. The unverified income of Rs. 2,036.40 Lakhs raises questions about the company's revenue recognition practices and the reliability of its financial statements.
2. Non-compliance with accounting standards for gratuity and lease obligations may result in misstated financial positions and performance metrics.
3. Delayed TDS deposits could lead to penalties and interest charges, potentially impacting the company's cash flow.
4. The misalignment between business activities and the company's object clause may pose legal and regulatory risks.

Investors are advised to closely monitor the company's progress in addressing these issues and implementing the promised corrective measures. The management's ability to resolve these compliance concerns promptly will be crucial in maintaining investor confidence and ensuring accurate financial reporting in the future.

As the company works towards regularizing its non-compliances, stakeholders should remain vigilant and look for updates on the implementation of corrective actions in subsequent financial reports and company announcements.