Varroc Engineering Limited has confirmed that there was no deviation in the utilization of proceeds from funds raised via Commercial Papers during FY 2025-26. The company disclosed to the stock exchanges that all proceeds were fully utilized for the purposes stated in its offer documents, complying with Regulation 32 and 52 of the Listing Regulations and SEBI Circular No. CIR/CFD/CMD1/162/2019 dated December 24, 2019.

The company raised funds through four distinct issuances of Commercial Papers during the financial year. The first issuance of ₹50 crore occurred in Q1 FY 2025-26, with an allotment date of May 21, 2025, and a redemption date of August 19, 2025. Subsequently, a second tranche of ₹50 crore was issued in Q2 FY 2025-26, allotted on August 22, 2025, and redeemed on November 20, 2025.

In Q4 FY 2025-26, Varroc Engineering raised two additional tranches of ₹50 crore each. The first Q4 tranche was allotted on January 1, 2026, and redeemed on January 27, 2026. The second Q4 tranche was allotted on January 28, 2026, with a redemption date set for February 27, 2026.

The filing confirmed that apart from these Commercial Paper issuances, there were no other fund-raising activities during the financial year ending March 31, 2026, under the said regulations. The company also noted that Non-Convertible Debentures (NCDs) issued in FY 2023-24 were fully redeemed on March 6, 2026, and those proceeds had also been utilized for the stated objects.

Commercial Paper Issuances in FY 2025-26

The statement of nil deviation was submitted by Anil Ghatiya, Company Secretary & Compliance Officer, on May 27, 2026.

Varroc Engineering Limited has disclosed its related party transactions for the half year ended March 31, 2026, in compliance with Regulation 23(9) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing, submitted to the National Stock Exchange of India and BSE Limited, outlines the consolidated transactions involving subsidiaries, key management personnel, and other related entities. The disclosure confirms that all transactions remained within the limits approved by the audit committee.

The report details various transactions, including the sale and purchase of goods and services, loans, and corporate guarantees extended to subsidiaries. Significant transactions include sales to Varroc Dellorto Private Limited amounting to 235.33 and purchases from Varroc Intelligent Driving R&D Center (C) totaling 299.65. The company also recorded interest received from Varroc Connect Private Limited at 8.09 and interest received from Varroc European Holding B.V. at 2.21.

Transactions with Key Management Personnel

The disclosure outlines remuneration paid to key managerial personnel. Chairman and Managing Director Mr. Tarang Jain received remuneration of 46.53, while Whole time Director Mr. Arjun Jain received 12.11. Mr. K. Mahendra Kumar, Group Chief Finance Officer, received 13.44, and Company Secretary Mr. Anil Ghatiya received 2.22. Other directors, including Mr. Dhruv Jain and Mr. Avinash Chintawar, also received remuneration as per the disclosed details.

Corporate Guarantees and Loans

Varroc Engineering provided corporate guarantees to several subsidiaries during the period. A guarantee of 516.61 was extended to Varroc Electronics Romania S.r.l., while Industria Meccanica E Stampaggio S.p.a. received guarantees amounting to 272.43. The company also extended loans to subsidiaries, including a loan of 177.90 to Varroc Connect Private Limited and 199.80 to Varroc European Holding B.V.

Inter-Subsidiary Transactions

The filing highlights numerous inter-subsidiary transactions. Varroc Italy S.p.A. engaged in significant purchases from Varroc Romania S.A. amounting to 143.34. VarrocCorp Holding B.V. received interest of 81.11 from Varroc European Holding B.V. and extended a loan of 115.50 to the same entity. These transactions were conducted within the approved framework and limits.