SEPC Limited reported that the Hon'ble High Court of Madras passed a common order on September 30, 2026, settling multiple execution petitions for a total consideration of ₹149.5 crore. This settlement results in the termination of all listed and un-numbered execution petitions and the immediate lifting of all interim attachments against the company.

The resolution stems from a Joint Memo of Compromise executed between the Award Holders (GPE India Ltd, GPE JV1 Ltd, and Gaja Trustee Company Private Limited) and the Judgment Debtors, including SEPC. The payment structure comprised a demand draft of ₹147 crore drawn on Axis Bank and a remaining balance of ₹2.5 crore already lying to the credit of the Court in Application No. 1812 of 2026.

Financial and Operational Impact

The company disclosed specific impacts on its financial position and banking operations following the court's directive. Notably, the direct monetary outflow for SEPC is stated as nil, as the payment was made entirely by Judgment Debtor 1 under a 2015 indemnity agreement.

The lifting of attachments has unlocked receivables valued at ₹154 crore, which were previously frozen. Furthermore, restrictions on banking operations imposed during the litigation have been completely removed with immediate effect, restoring normal financial flexibility to the entity.

What the Numbers Show

A key analytical observation from the disclosure is the divergence between the settlement value and the value of assets unlocked. While the total settlement consideration was ₹149.5 crore, the attachment on receivables lifted amounted to ₹154 crore. This indicates that the legal settlement not only resolved the liability but also freed up working capital assets slightly exceeding the final payout amount, providing a net positive liquidity signal for the company's balance sheet.

SEPC Limited held its 26th Annual General Meeting on September 28, 2026, through Video Conferencing and Other Audio Visual Means. The meeting addressed key governance matters, including the reappointment of a retiring director and the induction of a new independent director.

Dr. Ravichandran Rajagopalan, Independent Director and Chairman of the Audit Committee, chaired the session as the regular Chairman was unavailable. The meeting commenced at 10:30 am and concluded at 11:29 am. The requisite quorum was present, allowing the proceedings to move forward in compliance with Ministry of Corporate Affairs and Securities and Exchange Board of India circulars.

Resolutions transacted

The shareholders considered four primary items of business set out in the notice for FY26:

1. Adoption of audited standalone and consolidated financial statements for the financial year ended March 31, 2026.
2. Reappointment of Venkataramani Jaiganesh as a Director, who retired by rotation and offered himself for reappointment.
3. Ratification of remuneration for the Cost Auditor for the financial year ending March 31, 2026.
4. Appointment of Vasuki K B K as an Independent Director.

Governance and audit updates

During the meeting, the Chief Financial Officer informed members that the Statutory Audit Report contained observations for FY26, which were taken as read. In contrast, the Secretarial Audit Report was reported to be free from qualifications for the same period. The Managing Director and Chief Financial Officer provided detailed explanations regarding the company's performance, addressing queries from registered shareholders.

The Chairman facilitated electronic voting for all resolutions, with the facility remaining open for 15 minutes post-briefing. Consolidated voting results, along with the Scrutinizer's report, are scheduled to be displayed on the company's website and the Central Depository Services (India) Limited platform. These results will also be announced to stock exchanges within two working days of the meeting's conclusion.

Voting results summary

The scrutinizer report dated September 29, 2026, confirmed that all resolutions were passed with requisite majority. Notably, the adoption of financial statements saw significant dissent from institutional investors, while other governance appointments received broad support.

Details of new director appointment

In a filing dated September 29, 2026, SEPC Limited provided further details regarding the appointment of Ms. Vasuki K B K (DIN: 07452011) as an Independent Director. The appointment is for a term of 5 years, effective from August 25, 2026, to August 24, 2031.

Ms. Vasuki K B K brings extensive legal and judicial experience to the board. She enrolled with the Bar Council of Tamil Nadu in 1979 and served as a District Judge and Additional District Judge. She was elevated as a Judge of the Madras High Court in 2010, serving until her retirement on September 8, 2015. During her tenure, more than 100 of her judgments became precedents in various law journals. Post-retirement, she served as a Nominee Director with Star Health and Allied Insurance Co. Ltd. until 2019 and currently serves as an Independent Director in Indus Finance Ltd. She is not related to any other directors of the company.

What the numbers show

The voting pattern reveals a distinct divergence in shareholder sentiment regarding financial disclosures versus governance appointments. While the reappointment of directors and auditor remuneration received overwhelming support (over 94% in favour), the adoption of FY26 financial statements attracted only 59.72% of votes in favour.

This low assent rate is driven primarily by institutional investors, who cast 95.47% of their votes against the adoption of financial statements. In contrast, public non-institutional shareholders supported the adoption with 98.70% in favour. Promoters voted unanimously in favour across all resolutions. This suggests institutional concerns specifically regarding the audited standalone and consolidated financial statements for FY26, despite the Secretarial Audit Report being unqualified.