SEPC Limited has disclosed an update under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, pertaining to an order passed by the Hon'ble High Court of Madras on April 30, 2026. The order was uploaded on the court's portal on May 5, 2026, and was submitted to the stock exchanges on May 6, 2026, by Company Secretary and Compliance Officer T. Sriraman.

Background of the Proceedings

The matter relates to execution petition proceedings referenced as E.P. Nos. 91 and 92 of 2023, 7 of 2024, and 15 and 16 of 2025, along with Application No. 1812 of 2026. By an earlier order dated February 19, 2026, the court had attached the trade receivables of SEPC Limited (Judgment Debtor 2, or JD2) to the extent of ₹154,63,23,499. SEPC Limited subsequently applied to raise the order of attachment, asserting its inability to pay salaries and discharge statutory liabilities on account of the attachment. The consortium of lenders, represented by Punjab National Bank as lead bank, also applied to raise the attachment.

Key Interim Directions Issued by the Court

In partial modification of the earlier order dated February 19, 2026, the Hon'ble Mr. Justice Senthilkumar Ramamoorthy issued the following interim directions on April 30, 2026:

The court also noted that the consortium of banks had not provided details of the total amount available in the Trust and Retention Account as on the date of hearing, despite being expressly directed to do so. Only the amount received by way of trade receivables — approximately ₹7,13,72,038 as on April 29, 2026 — was specified. The court directed that additional details, including the average monthly amounts received in the Trust and Retention Account, be provided in an additional affidavit on the next date of hearing.

Financial Impact on SEPC Limited

SEPC Limited has stated that the interim directions and appropriation are being dealt with under an indemnification arrangement. The company noted that it stands fully indemnified against any matters arising out of the Arbitral Award, in terms of the indemnification agreement dated September 29, 2015, with Twarit Consultancy Services Private Limited and Shri Housing Private Limited. Accordingly, the company has stated there is no direct quantifiable financial impact on SEPC Limited from the current order.

Authority and Order Details

The following table summarises the key disclosure details as submitted by SEPC Limited in Annexure I to its regulatory filing:

The matter has been listed for further hearing on June 23, 2026, at which point the consortium of banks is required to submit the additional affidavit with complete details of the Trust and Retention Account.

SEPC Limited has received an Administrative Warning Letter from the Securities and Exchange Board of India (SEBI), the company disclosed on May 4, 2026, pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The warning letter, dated April 30, 2026, was received by the company on May 4, 2026.

Reason for SEBI Warning

The Administrative Warning Letter was issued by SEBI in connection with the delayed disclosure of arbitration proceedings and a settlement agreement with Hindustan Copper Limited. The disclosure was made under Regulation 30 of the SEBI (LODR) Regulations, 2015, which mandates listed entities to promptly inform stock exchanges of material developments.

Key details of the regulatory communication are summarised below:

Company's Response and Next Steps

SEPC Limited stated that the Administrative Warning Letter will be placed before the Board of Directors at its forthcoming meeting. The company also reaffirmed its commitment to strengthening its compliance framework and ensuring timely disclosures in accordance with SEBI (LODR) Regulations, 2015.

The intimation was signed by T. Sriraman, Company Secretary and Compliance Officer of SEPC Limited, and was digitally authenticated on May 4, 2026.