TruAlt Bioenergy has appointed Mr. Deepak Sadhu as its Secretarial Auditor for a period of five consecutive years, effective from April 01, 2026, through March 31, 2031. The Board of Directors approved the appointment during a meeting held on Tuesday, August 4, 2026, citing the firm’s expertise in corporate laws and governance as beneficial to the company’s interests. This engagement ensures continuity in regulatory compliance monitoring over the next fiscal cycle.

The appointment was made in accordance with Regulation 24(A) and Regulation 30 read with Para A of Part A of Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company also referenced SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/015 dated November 11, 2024, and SEBI Circular No. SEBI/HO/CFD/CFD-PoD-2/CIR/P/2024/185 dated December 31, 2024, in its disclosure to the stock exchanges.

Mr. Sadhu is a Practicing Company Secretary based in Bangalore, holding ACS number 39541 and COP number 14992. He possesses an overall 11 years of professional experience spanning corporate laws, governance, secretarial audit, intellectual property, and transaction advisory. His profile indicates he has served as a trusted advisor to more than 150 companies.

Auditor Profile and Experience

Mr. Sadhu’s professional background includes roles as a Compliance Advisor for the Kurl-on Group and engagements with listed entities such as Natural Capsules Limited and KMF Builders & Developers Limited. His expertise covers corporate compliance, board and shareholder advisory, mergers and acquisitions, business takeovers, due diligence, and strategic transactions. Additionally, he provides end-to-end trademark services, including applications, objections, hearings, registrations, renewals, restorations, and portfolio management.

The Board confirmed that Mr. Deepak Sadhu is not related to any Director of the Company, ensuring independence in the audit function. The meeting commenced at 10:50 a.m. IST and concluded at 12:10 p.m. IST. The company disclosed that this information is available on its website at www.trualtbioenergy.com .

What This Means for Governance

The appointment of a long-term secretarial auditor provides stability to TruAlt Bioenergy’s compliance framework. With a five-year tenure, Mr. Sadhu will oversee adherence to statutory requirements across multiple financial years, reducing the administrative burden of frequent auditor changes. His specific experience with listed companies like Natural Capsules Limited suggests familiarity with the rigorous disclosure norms applicable to public entities.

TruAlt Bioenergy Limited company name has approved the slump sale of its Unit 5, located in Muttalageri Village, Badami Taluka, Karnataka, to Onkar Agro Sugars & Energy Private Limited for an aggregate consideration of ₹171 crore. The Board of Directors ratified the transaction during its meeting on August 4, 2026, marking a strategic move to divest a non-core asset that currently generates no revenue but carries significant debt obligations.

The primary driver behind the divestment is the reduction of financial liabilities associated with the unit. Unit 5 holds an outstanding term loan of approximately ₹135 crore from the Indian Renewable Energy Development Agency Limited (IREDA). Management stated that the interest costs on this loan have adversely impacted profitability and cash flows. By selling the undertaking as a going concern, including land, buildings, plant, and machinery, the company intends to utilize the proceeds primarily to repay this debt, with the remaining balance deployed toward core business operations and high-growth opportunities.

Transaction Details

The sale is structured as a slump sale under Section 2(42A) of the Income Tax Act, though specific tax implications were not detailed in the filing. The transaction is subject to customary closing adjustments, fulfillment of conditions precedent, and receipt of necessary statutory and regulatory approvals. An Memorandum of Understanding (MOU) was executed on August 4, 2026, with definitive agreements to follow after due diligence.

The buyer, Onkar Agro Sugars & Energy Private Limited, is not related to the promoters or group companies of TruAlt Bioenergy, confirming the transaction is at arm's length. The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024.

Financial Impact and Strategic Rationale

Unit 5 contributed nil turnover or revenue during the financial year ended March 31, 2026. However, its carrying value of net assets stood at ₹159.32 crore, representing 10.53% of the company’s total net worth as of March 31, 2026. The divestment allows the company to shed a liability-heavy asset that was draining resources without contributing to top-line growth.

What the Numbers Show

The disparity between the sale consideration of ₹171 crore and the outstanding debt of ₹135 crore suggests a potential immediate improvement in net cash position, assuming no other significant liabilities are attached to the unit. By removing ₹135 crore of debt from its books, the company is expected to see a reduction in finance costs, which should positively impact future earnings before interest and taxes (EBIT) and overall cash flow generation. This aligns with management’s stated goal of enhancing operational efficiency and capital allocation.

The company expects to complete the disposal by November 4, 2026. Further details regarding the definitive agreement and final consideration adjustments will be disclosed upon execution. The information is also available on the company’s website.