Zuari Agro Chemicals has informed stock exchanges that it received final orders on May 22, 2026, from the Regional Director, Western Region-I, Ministry of Corporate Affairs, Mumbai. This follows the interim orders received on May 14, 2026, concerning compounding applications filed under Section 441 of the Companies Act, 2013. The company confirmed that the alleged violations now stand compounded following the receipt of compounding fees.

Background of the Case

The regulatory proceedings relate to alleged non-compliances under Section 129 read with IND AS-36. The violations pained to the impairment assessment and disclosure requirements regarding the investment in Mangalore Chemicals & Fertilizers Limited for the financial years 2019-20 to 2022-23. The applications were submitted by the Executive Director, Promoter Directors, Directors, and Key Managerial Personnel (KMPs), including former directors and KMPs.

Order Details

The final orders were passed in respect of 10 compounding applications. The table below summarises the key regulatory details:

Financial Implications

Zuari Agro Chemicals stated that there is no material impact on its financials, operations, or other activities due to the final orders. The listed entity itself was not levied any compounding fees. However, an aggregate amount of Rs. 22.25 lakhs was levied on the individuals involved, specifically the Executive Director, Promoter Directors, Directors, and KMPs, including former directors and KMPs.

Globalware Trading & Holdings Limited has formally communicated to the stock exchanges and the Audit Committee of Zuari Agro Chemicals Limited regarding the status of its shareholding in the company. The declaration, dated April 2, 2026, was submitted in compliance with Regulation 31(4) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

The disclosure confirms that neither Globalware Trading & Holdings Limited nor any persons acting in concert with it have created any encumbrance, directly or indirectly, on the shares of Zuari Agro Chemicals Limited during the financial year ended March 31, 2026. The company specified that this declaration excludes any encumbrances that had already been previously disclosed to the stock exchanges and the target company.

Declaration Details

The communication serves as a formal confirmation to the regulatory bodies and the company's internal audit committee. The key details of the declaration are outlined below:

The letter, signed by Director Akshay Poddar, was addressed to the Audit Committee of Zuari Agro Chemicals Limited, the National Stock Exchange Limited, and BSE Limited for their information and records.