Apollo Micro Systems Limited has recently addressed a regulatory compliance issue by receiving and settling a compounding order from the Regional Director (South East Region), Hyderabad. This development comes in response to a violation of Section 148(6) of the Companies Act, 2013.

Violation Details

The company faced scrutiny for failing to file its cost audit report in Form CRA-4 within the prescribed timeframe, as mandated by Section 148(6) of the Companies Act, 2013. To resolve this non-compliance, Apollo Micro Systems took proactive steps by filing an application under Section 441 of the Companies Act, 2013 for compounding of the violation.

Settlement Process

The settlement process unfolded as follows:

Key Points of the Order

The Regional Director (South East Region), Hyderabad, issued the compounding order with the following key aspects:

1. The order was issued in response to the company's application dated August 2, 2025.
2. Compounding fees were imposed on the officers in default as prescribed under Section 441 of the Companies Act, 2013.
3. The Regional Director confirmed the receipt of the remitted amount in the order.

Impact on Company Operations

Apollo Micro Systems has stated that this regulatory settlement has no impact on its financial, operational, or other activities. The company's prompt action in addressing the non-compliance and settling the matter demonstrates its commitment to regulatory adherence.

Conclusion

This incident serves as a reminder of the importance of timely compliance with regulatory requirements for publicly listed companies. Apollo Micro Systems' swift action in resolving the issue through the compounding process highlights the company's responsiveness to regulatory matters.

Investors and stakeholders can take note of the company's proactive approach in addressing and resolving compliance issues, which is crucial for maintaining transparency and trust in the market.

Apollo Micro Systems Limited , a key player in the Indian technology sector, has strengthened its capital structure through a warrant conversion. The company announced the allotment of 1,21,47,964 equity shares, resulting from the conversion of warrants by six allottees, including promoter group members and directors.

Financial Implications

The warrant conversion has brought in a capital influx, with Apollo Micro Systems receiving Rs. 103.86 crores as the warrant exercise price. This move has led to an increase in the company's paid-up capital, which has risen from Rs. 34.22 crores to Rs. 35.44 crores.

Impact on Share Structure

The newly allotted shares will rank pari-passu with the existing equity shares of the company, carrying equal rights in terms of dividends and voting. This allotment represents a dilution of approximately 3.43% based on the expanded equity base.

Financial Position

To provide context on the company's financial standing, here's a snapshot of Apollo Micro Systems' key balance sheet metrics:

The company has shown growth across key financial metrics, with total assets increasing by 35.90% year-over-year.

Strategic Implications

The participation of promoter group members and directors in this warrant conversion may signal confidence in the company's prospects. It aligns the interests of key stakeholders with those of public shareholders.

Conclusion

Apollo Micro Systems' recent warrant conversion enhances its capital structure and may demonstrate confidence from its core stakeholders. As the company deploys this additional capital, investors and market watchers may be interested in observing how it translates into operational performance in the coming quarters.

Investors are advised to monitor the company's upcoming financial reports and management commentary for insights into how this capital infusion may be utilized.