Kridhan Infra receives SEBI notice over alleged accounting, governance lapses

Kridhan Infra Limited has disclosed receiving a show cause notice from the Securities and Exchange Board of India (SEBI) dated August 12, 2026. The regulator initiated adjudication proceedings against the infrastructure developer under Section 15-I of the SEBI Act, 1992, and Rule 4(1) of the SEBI (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995.

The notice was issued by the Office of the Chief General Manager & Adjudicating Officer, alleging non-compliance with certain provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Pursuant to Regulation 30 of the SEBI Listing Regulations, the company informed both the Bombay Stock Exchange and the National Stock Exchange of India Limited about the regulatory action.

Alleged Violations

The show cause notice outlines three primary areas of alleged contravention:

Accounting Standards Non-Compliance: Failure to recognize interest on bank loans in the preparation and presentation of standalone and consolidated financial statements and results for the financial year 2023. This is cited as a violation of Ind AS 1, 23, 32, and 109.
Disclosure Failures: Alleged failure to make necessary disclosures in financial statements regarding departures from accounting standards, violating Ind AS-1.
Governance Lapses: Non-filling of key management positions for periods exceeding three months. Specifically, the position of Managing Director remained vacant from October 10, 2022, to February 12, 2024, and the Chief Financial Officer role was vacant from July 1, 2022, to February 12, 2024. This is alleged to violate Regulations 17(1E), 26A(1), and 26A(2) of the SEBI LODR Regulations, 2015.

Regulatory Context

The adjudication proceedings were initiated under Section 19 of the SEBI Act, 1992, read with Rule 3 of the Adjudication Rules. The process involves an inquiry to adjudge penalties in terms of Rule 5 of the SEBI Adjudication Rules and provisions of Section 15A(b) and 15HB of the SEBI Act, 1992.

Financial Impact Assessment

The company stated that the show cause notice does not quantify any monetary penalty. Consequently, the financial implications depend entirely on the outcome of the ongoing adjudication proceedings. Kridhan Infra noted that the impact on its financial or operational activities cannot be ascertained at this stage.

The full disclosure is available on the company’s website.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+2.27%	-3.85%	-17.28%	-37.33%	-44.72%	-53.61%

Kridhan Infra Limited has restructured its board and key managerial personnel with the appointment of three new directors and the resignation of its Managing Director, effective July 21, 2026. The Board of Directors approved the appointments based on the recommendations of the Nomination and Remuneration Committee. These changes are subject to approval by the shareholders of the company.

Mr. Badatala Sreenivasa Rao has been appointed as an Additional Non-Executive & Independent Director for a term of five consecutive years. He is not liable to retire by rotation. Mr. Krishnaprasad Sunder Rao has been appointed as an Additional Director (Whole Time Director) for five years, liable to retire by rotation. Mr. Mithlesh Jaiswal, currently the Chief Financial Officer, has been appointed as an Additional Director (Executive Director) for five years, also liable to retire by rotation.

The company also appointed Ms. Ekta Rathod as Company Secretary & Compliance Officer and Key Managerial Personnel effective July 21, 2026. Concurrently, the board noted the resignation of Mr. Gautam Suri as Managing Director, effective from the close of business hours on July 21, 2026, due to medical reasons. The board placed on record its appreciation for Mr. Suri's contributions.

Appointments and Resignations

The following table summarizes the changes in the company's management:

Name	Designation	Date of Effect	Term	Retirement Liability
Mr. Badatala Sreenivasa Rao	Additional Non-Executive & Independent Director	July 21, 2026	5 Years	Not liable to retire by rotation
Mr. Krishnaprasad Sunder Rao	Additional Director (Whole Time Director)	July 21, 2026	5 Years	Liable to retire by rotation
Mr. Mithlesh Jaiswal	Additional Director (Executive Director)	July 21, 2026	5 Years	Liable to retire by rotation
Ms. Ekta Rathod	Company Secretary & Compliance Officer	July 21, 2026	-	-
Mr. Gautam Suri	Managing Director	July 21, 2026	-	Resigned

Director Profiles

Mr. Badatala Sreenivasa Rao is a Post Graduate in Agriculture specializing in Genetics & Plant Breeding. He has extensive experience in banking, having served as Chief Financial Officer and General Manager overseeing Finance and Planning at a large public sector bank. Mr. Krishnaprasad Sunder Rao is a commerce graduate with 20 years of experience in the infrastructure and construction industry, specializing in large-scale projects. Mr. Mithlesh Jaiswal, aged 58, holds a Bachelor's degree in Commerce and has 35 years of experience in Accounts & Taxation across various industries.

Ms. Ekta Rathod is a qualified Company Secretary and an Associate Member of the Institute of Company Secretaries of India. She holds a Bachelor of Commerce degree and possesses experience in secretarial compliance and corporate regulatory matters. The appointments and resignation were intimated to the exchanges under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.