Chemkart India Limited has filed its related party transaction (RPT) disclosure with BSE Limited for the half year ended September 30, 2025, while also paying a penalty of ₹11,800.00 for alleged regulatory non-compliance.

Regulatory Compliance and Penalty Payment

The company submitted the RPT disclosure under Regulation 23(9) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Chemkart India listed its equity shares on the BSE SME Exchange on July 14, 2025, making the RPT disclosure provisions applicable from that date.

Under Regulation 15(2)(b), SME listed entities have six months from the applicability date to ensure compliance with RPT disclosure requirements. Despite this statutory timeline being available, BSE levied a penalty based on SEBI Master Circular dated November 11, 2024.

Related Party Transaction Overview

The company disclosed comprehensive RPT details for both standalone and consolidated financial statements. The transactions primarily involve subsidiaries, directors, and promoters across various categories including loans, remuneration, and business operations.

Standalone Financial Transactions

The standalone RPT disclosure reveals total transaction value of ₹777.42 lakhs during the reporting period. Key transactions include:

Consolidated Financial Transactions

The consolidated RPT disclosure shows total transaction value of ₹671.66 lakhs. Major components include remuneration to directors and promoters, IPO expense reimbursements, and loans to key management personnel.

Key Related Parties

The disclosed transactions involve several related parties:

• Easy Raw Material Pvt. Ltd. (Subsidiary): Investment, loans, rent income, and interest transactions
• Vinstar Biotech Pvt. Ltd. (Subsidiary): Rent income, interest received, and loan transactions
• Moksha Lifecare Pvt. Ltd.: Sale of goods and services
• Directors and Promoters: Parul Shalish Mehta, Ankit Shalish Mehta, and Shalish Vindora Mehta for remuneration, loans, and reimbursements

Audit Committee Approval

All disclosed transactions received audit committee approval on March 7, 2025, with approved limits ranging from ₹18.00 lakhs to ₹5.00 crores depending on the transaction type and counterparty relationship.

The company emphasized that it was not in actual non-compliance with SEBI regulations, as the statutory timeline for compliance remained available under the applicable provisions. However, to avoid any regulatory observations, the company proactively paid the levied penalty.

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.