Vedanta Iron & Steel disclosed on August 26, 2026, that Lodha & Co LLP has resigned as statutory auditor of its material subsidiary, ESL Steel Limited. The resignation is effective immediately to align auditing with the group framework.

The change follows the recent demerger of the iron ore and steel business from Vedanta Limited to Vedanta Iron & Steel Limited. As a result, ESL Steel became a material subsidiary of the holding company.

Regulatory Disclosure

The company filed the disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This aligns with clause 7A of Para A of Part A of Schedule III and relevant SEBI Master Circulars.

Lodha & Co LLP confirmed there are no other material reasons for the resignation beyond this structural alignment. The firm had been appointed as statutory auditor on August 26, 2022, with a term scheduled to expire on March 31, 2027.

Auditor Details

The latest audit report submitted by Lodha & Co LLP was dated April 18, 2026, for the period ending March 31, 2026. The holding company’s statutory auditor is expected to take over the audit function for ESL Steel.

Vedanta Iron & Steel subsidiary ESL Steel Limited received an adjudication order from the Registrar of Companies, Ranchi, on August 25, 2026. The order addresses alleged non-compliance in director remuneration disclosures for financial years 2015-16 to 2017-18.

The adjudication pertains to violations of Section 197(15) of the Companies Act, 2013, read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014. Specifically, the matter involves the alleged non-disclosure of the ratio of directors' remuneration to median employee remuneration in the Board's Report or Corporate Governance Report.

Penalty Exemption

Under Section 32A of the Insolvency and Bankruptcy Code (IBC), 2016, ESL Steel is exempted from any monetary penalty associated with this adjudication. The order concludes the proceedings for the company. However, ex-directors have accepted penalties as mentioned in the notices and undertake to remit them as directed by the Adjudicating Officer.

This disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, along with Sub-para (8) of Para B of Part A of Schedule III.

What the Numbers Show

The adjudication highlights a regulatory distinction between corporate liability and individual accountability during insolvency proceedings. While the corporate debtor (ESL Steel) is shielded from financial penalties due to its status under the IBC 2016, the personal liability of ex-directors remains intact. This separation ensures that compliance failures from the FY15-17 period do not impact the company's current balance sheet, though they result in personal financial obligations for former management.