Zuari Agro Receives MCA Order; Rs 22.25 Lakhs Levied

Zuari Agro Chemicals has informed stock exchanges that it received an interim order on May 14, 2026, from the Office of the Regional Director, Western Region-I, Ministry of Corporate Affairs, Mumbai. The order relates to a compounding application filed under Section 441 of the Companies Act, 2013 for alleged non-compliances under Section 129 read with IND AS-36. The disclosure was made pursuant to Regulation 30 read with Clause 20 of Para A of Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Nature of the Interim Order

The interim order was passed on a compounding application submitted by the Executive Director, Promoter Directors, Directors, and Key Managerial Personnel (KMPs), including former directors and KMPs. The order was issued by the Regional Director, Western Region-I, Mumbai. The following table summarises the key details of the regulatory action:

Parameter:	Details
Issuing Authority:	Regional Director, Western Region-I, Ministry of Corporate Affairs, Mumbai
Applicable Section (Filing):	Section 441, Companies Act, 2013
Alleged Violation Section:	Section 129 read with IND AS-36
Date of Receipt:	May 14, 2026

Alleged Violations

The alleged violation cited in the interim order pertains to non-compliance with IND AS-36 relating to impairment assessment and disclosure requirements. Specifically, it concerns the investment in Mangalore Chemicals & Fertilizers Limited for the financial years 2019-20 to 2022-23.

Financial and Operational Impact

Zuari Agro Chemicals has stated that there is no material impact on its financials, operations, or other activities on account of the aforesaid interim order. The company itself has not been levied with any compounding fees pursuant to the said order.

However, compounding fees have been levied on the individuals involved. The following table outlines the financial implication:

Parameter:	Details
Compounding Fees on Company:	Nil
Aggregate Compounding Fees Levied on Individuals:	Rs. 22.25 lakhs
Individuals Levied:	Executive Director, Promoter Directors, Director, KMPs (including former director/KMPs)

The aggregate compounding fees of Rs. 22.25 lakhs have been levied on the Executive Director, Promoter Directors, Directors, and KMPs, including former directors and KMPs, and not on the listed entity itself. The company has requested the stock exchanges to take the above information on record.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-3.70%	-8.51%	+3.88%	-22.26%	+1.78%	+131.77%

Zuari Agro Chemicals has disclosed the receipt of four interim orders from the Regional Director, Western Region, Ministry of Corporate Affairs (MCA), Mumbai, dated 8th May 2026. The disclosure was made pursuant to Regulation 30 read with Clause 20 of Para A of Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The orders relate to compounding applications filed under Section 441 of the Companies Act, 2013 for alleged non-compliances under Section 129 of the Companies Act, 2013.

Nature of Interim Orders

The four interim orders were passed by the Regional Director, Western Region, Mumbai, in connection with compounding applications submitted by the company's Executive Director, Promoter directors, Director, and Key Managerial Personnel (KMPs), including earlier directors and KMPs. The alleged non-compliances pertain to accounting disclosures and presentation matters, which the company characterised as unintentional and procedural in nature. The orders involve alleged violations under IND AS-33, IND AS-36, IND AS-37, and Schedule III of the Companies Act, 2013.

Details of Alleged Violations

The following table summarises the specific alleged violations cited in the interim orders:

Particulars:	Details
IND AS-33	Non-disclosure/presentation of Basic and Diluted EPS separately for FY 2019-20 to FY 2022-23
IND AS-36	Alleged non-compliance relating to impairment assessment of investment in Zuari Farmhub Limited for FY 2019-20 to FY 2022-23
IND AS-37	Alleged non-compliance relating to deferred tax assets and related disclosures for FY 2020-21 and FY 2021-22
Schedule III	Disclosure-related non-compliance relating to separate disclosure of legal and professional expenses for FY 2020-21 and FY 2021-22

Financial and Operational Impact

Zuari Agro Chemicals stated that the interim orders have no material impact on the financials, operations, or other activities of the company. The company itself was not levied with any compounding fees pursuant to the said orders. However, pursuant to the four interim compounding orders, a total compounding fee amounting to Rs. 66.00 lakhs was levied collectively on the Executive Director, Promoter directors, Director, CFO, Ex-Director, and Ex-CFO.

Regulatory Disclosure

The intimation was signed by Asheeba Pereira, Company Secretary, on 9th May 2026, and submitted to both BSE Limited and the National Stock Exchange of India Ltd. The company requested both exchanges to take the information on record. The disclosure was made in compliance with applicable SEBI LODR requirements governing timely intimation of orders and directions received from regulatory authorities.