Rama Petrochemicals Limited has disclosed a penalty of ₹17.2 lakh imposed by the BSE for a delay in filing a listing application following the conversion of warrants. The disclosure was made in the Annual Secretarial Compliance Report for the financial year ended March 31, 2026, submitted to the exchange. The report, issued by M/s. Ashok Patel & Associates, Practicing Company Secretaries, confirms the company's compliance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and other applicable guidelines during the review period, barring this specific deviation.

The non-compliance pertains to Schedule XIX of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. The company allotted equity shares on a preferential basis pursuant to the conversion of warrants on March 26, 2025. Regulations required the application for listing of these securities to be filed with the exchange by April 15, 2025. However, the listing application was filed on June 27, 2025, resulting in the deviation.

Penalty and Management Response

Following the delay, the BSE imposed a fine of ₹17.2 lakh. The compliance report notes that the company paid the fine under protest on January 19, 2026. Management stated that it had made a representation to the stock exchange seeking a waiver of the fine. The exchange did not consider this representation, leading to the payment of the penalty.

Compliance Status

Apart from the aforementioned incident, the report indicates that Rama Petrochemicals Limited has complied with all provisions of the examined regulations and circulars. The scope of the audit included the SEBI Act, 1992, the Securities Contracts (Regulation) Act, 1956, and specific regulations such as the SEBI (Prohibition of Insider Trading) Regulations, 2015, and the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

The practicing company secretary verified the maintenance of statutory records, the functionality of the company's website, and the adoption of necessary board-approved policies. The report confirmed that no director of the company is disqualified under Section 164 of the Companies Act, 2013, and that there were no actions taken by SEBI or the stock exchanges against the entity, its promoters, or directors during the review period.

Rama Petrochemicals Limited reported a consolidated net loss of ₹730.03 lakh for the financial year ended March 31, 2026, significantly wider than the net loss of ₹40.72 lakh in the previous year. The company's board approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026 at a meeting held on May 26, 2026. The statutory auditors, Khandelwal & Mehta LLP, issued a qualified opinion on the financial results due to the company's treatment of a payment of ₹185 lakhs towards the release of collateral securities as 'Other Financial Assets', which is not in accordance with generally accepted accounting principles.

Financial Performance

For the quarter ended March 31, 2026, Rama Petrochemicals reported a total consolidated income of ₹16.18 lakh, compared to ₹3.73 lakh in the same period last year. Total expenses for the quarter stood at ₹211.42 lakh. The company reported a basic and diluted earnings per share (EPS) of (₹1.62) for the quarter. For the full year ended March 31, 2026, the company reported a consolidated net loss of ₹730.03 lakh on a total income of ₹59.20 lakh. In the previous year, the company had reported a net loss of ₹40.72 lakh on a total income of ₹9.32 lakh.

Audit Qualification

The statutory auditors, Khandelwal & Mehta LLP, issued a qualified opinion on the financial results. The qualification relates to the company's treatment of a payment of ₹185 lakhs towards the release of collateral securities as 'Other Financial Assets'. The auditors stated this is not in accordance with generally accepted accounting principles, resulting in Retained Earnings and Current Assets being higher by ₹185 lakhs as on March 31, 2026. This qualification has been recurring since the financial year 2021-2022.

Board Decisions

Alongside the financial results, the board approved the re-appointment of M/s H. G. Sarvaiya & Co, Chartered Accountants, as the Internal Auditor for the financial year 2026-2027. The firm, with registration number 115705W, was appointed based on the recommendation of the Audit Committee for a period of one year. The board also approved the Director's Report, Secretarial Audit Report, and the Report on Corporate Governance for the year ended March 31, 2026. The board fixed the date for the Fortieth Annual General Meeting (AGM) as Thursday, August 6, 2026. The meeting will be held through Video Conference (VC) or Other Audio Visual Means (OAVM) in compliance with relevant circulars issued by the Ministry of Corporate Affairs (MCA) and the Securities and Exchange Board of India (SEBI).