Varroc engineering Limited has announced the implementation of a Voluntary Retirement Scheme (VRS) for permanent workmen across its various facilities. The automotive components manufacturer informed stock exchanges about this strategic workforce restructuring initiative on January 16, 2026.

VRS Implementation Details

The company received significant response to its voluntary retirement scheme from eligible employees. The participation and financial details are outlined below:

Scheme Framework and Benefits

Varroc Engineering emphasized that the VRS has been formulated in a manner beneficial to both the company and the participating workmen. The scheme targets permanent workmen across the company's various manufacturing facilities, providing them with an opportunity for voluntary separation with financial compensation.

The high acceptance rate of 95.14% indicates strong employee participation in the scheme, with only 21 applications out of 432 being declined by the company.

Regulatory Compliance

The company has communicated this development to both the National Stock Exchange of India Limited (NSE Symbol: VARROC) and BSE Limited (BSE Security Code: 541578) as part of its compliance obligations under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Company Secretary and Compliance Officer Anil Ghatiya signed the regulatory intimation, ensuring proper disclosure of this material development to stakeholders and the investing public.

Varroc Engineering Limited has filed its quarterly compliance statement with stock exchanges, confirming no fund-raising activities during the quarter ended December 31, 2025. The automotive component manufacturer submitted the mandatory disclosure under SEBI Listing Regulations, demonstrating its commitment to regulatory compliance and transparent financial reporting.

Quarterly Fund Utilization Report

The company's submission to NSE and BSE confirms compliance with Regulation 32 and 52(7) of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. As per the filing dated January 2, 2026, Varroc Engineering reported no new issue or fund-raising activity during Q3FY26.

Commercial Paper Proceeds Utilization

The company confirmed proper utilization of previously raised funds through Commercial Paper. Varroc Engineering had raised ₹50.00 crore via Commercial Paper in Q2FY26, and the latest filing confirms complete adherence to stated objectives.

The proceeds were utilized entirely for purposes stated in the offer document and General Information Document, with no deviation or variation from the original objectives. This demonstrates the company's disciplined approach to capital allocation and adherence to investor commitments.

Regulatory Compliance Framework

The submission was made in accordance with SEBI Circular No. CIR/CFD/CMD1/162/2019 dated December 24, 2019. Company Secretary and Compliance Officer Anil Ghatiya signed the compliance certificate, confirming the accuracy of reported information.

Key compliance highlights include:

• No shareholder approval required for fund utilization changes
• No audit committee comments necessary due to proper fund usage
• No auditor remarks on fund utilization practices
• Complete transparency in fund deployment reporting

Corporate Governance Standards

The timely submission of the NIL deviation statement reflects Varroc Engineering's commitment to maintaining high corporate governance standards. The company's proactive compliance approach ensures investor confidence and regulatory adherence across all fund-raising activities.

This quarterly filing reinforces the company's track record of responsible financial management and transparent reporting practices, essential elements for maintaining investor trust in the competitive automotive components sector.