Chemkart India Limited has issued a comprehensive clarification regarding the ongoing Directorate of Revenue Intelligence (DRI) investigation following recent media reports and public discourse. The company has provided detailed financial information about the matter and confirmed substantial duty payments already made. Additionally, the company has announced a virtual investor meeting to address stakeholder queries on the regulatory matter.

Investigation Details and Arrest Timeline

The investigation relates to classification and valuation of select chemical consignments imported during earlier periods. The key developments in the case are outlined below:

Financial Impact and Duty Settlement

The investigation specifically concerns Instantized Branched Chain Amino Acids (BCAA), Instantized L-Leucine Powder, Instantized L-Isoleucine Powder, and Valine Powder imported over a five-year period. The financial implications have been clearly quantified:

Revenue Impact Analysis

The company has demonstrated that the investigated products represent a minimal portion of its overall business. The aggregate purchases of these products contributed an average of approximately 2.80% to the company's annual turnover over the last five years, indicating limited revenue dependence on this product category.

Investor Meeting Announcement

Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Chemkart India has announced a virtual investor meeting to address queries regarding the DRI investigation. The meeting details are as follows:

The company has clarified that no Unpublished Price Sensitive Information (UPSI) will be shared during the conference call, maintaining compliance with regulatory disclosure requirements.

Business Continuity and Operations

Chemkart India has assured stakeholders about operational stability despite the regulatory matter. The company confirmed that while the settlement of the duty amount may result in short-term liquidity tightness, it does not have any material adverse impact on ongoing operations, financial stability, or growth plans.

The company continues to witness stable demand across its key segments and remains focused on scaling its value-added nutraceutical offerings and export-oriented manufacturing capabilities. Management has emphasized full cooperation with investigating authorities while maintaining business operations without material disruption.

Corporate Governance and Compliance

The company has reiterated its commitment to high standards of corporate governance, regulatory compliance, and transparent communication with stakeholders. The investor meeting announcement demonstrates the company's proactive approach to stakeholder engagement during regulatory proceedings.

Chemkart India Limited has committed to keeping shareholders appropriately informed of any material developments in line with applicable regulatory requirements as the investigation progresses.

Chemkart India Limited , a nutraceuticals company, has reported a significant deviation in its fund utilization for the quarter ended September 30, 2025, according to the first Monitoring Agency Report issued by Brickwork Ratings India Private Limited.

Key Highlights

• The company raised Rs 80.08 crore through Fresh Issue and Offer for Sale of Equity Shares in July 2025.
• A 60.26% deviation was observed in fund utilization for General Corporate Purpose (GCP).
• Rs 0.43 crore was spent on GCP against the allocated Rs 0.27 crore, resulting in an excess utilization of Rs 0.16 crore.

Fund Utilization Breakdown

Additional Observations

Offer for Sale (OFS) Discrepancy

The company transferred Rs 13.69 crore to OFS shareholders and incurred Rs 2.20 crore in issue expenses related to OFS, totaling Rs 15.89 crore. This resulted in an additional outflow of Rs 0.29 crore above the Rs 15.60 crore specified in the Prospectus.

Unutilized Funds

Chemkart has invested the unutilized funds in various financial instruments, including liquid funds and arbitrage funds from asset management companies such as Mirae Asset, Nippon India, Tata, Aditya Birla Sun Life, HDFC, and ICICI Prudential.

Implementation Timeline

There are no reported delays in the implementation of the stated objectives. The manufacturing facility investment through the company's wholly-owned subsidiary is ongoing and expected to be completed by the financial year 2026-27.

Regulatory Compliance

The company has obtained all necessary government and statutory approvals related to the stated objectives of the fund utilization.

The Monitoring Agency Report, prepared by Brickwork Ratings, is based on the format prescribed by SEBI (ICDR) Regulations, 2018. The report aims to provide a true and fair view of the utilization of the issue proceeds in relation to the objects of the issue.

Chemkart India Limited's management and Board of Directors may need to address the deviation in fund utilization, particularly the excess spending on General Corporate Purpose. Shareholders and investors may want to monitor future reports for any additional explanations or actions taken by the company regarding this deviation.