Zuari Agro Chemicals receives interim order from MCA regarding IND AS-36 non-compliance.
Zuari Agro Chemicals received an interim order from MCA regarding alleged non-compliance with IND AS-36 for FY 2019-20 to FY 2022-23. No material impact on company financials or operations. Compounding fees of ₹22.25 lakhs levied on directors and KMPs.
The company explicitly states there is no material impact on its financials, operations, or other activities. The compounding fees are levied on individuals (directors and KMPs) rather than the company itself, limiting the direct impact on Zuari Agro Chemicals.
The announcement is neutral as it pertains to a regulatory order concerning alleged non-compliance, but the company itself is not materially impacted financially or operationally. While fees are levied on individuals, the core business remains unaffected.
Zuari Agro Chemicals Limited has received an Interim Order from the Regional Director, Western Region, Ministry of Corporate Affairs (MCA), Mumbai. This order pertains to a compounding application filed under Section 441 of the Companies Act, 2013, for alleged non-compliances with Section 129 of the Companies Act, 2013, read with IND AS-36.
The alleged violation relates to the impairment assessment and disclosure in respect of investment in Mangalore Chemicals & Fertilizers Limited for the financial years 2019-20 to 2022-23. The company stated that there is no material impact on its financials, operations, or other activities as a result of this interim order, and no compounding fees were levied on the company itself.
However, a total compounding fee of ₹22.25 lakhs has been levied on the Executive Director, Promoter directors, Director, and Key Managerial Personnel (KMPs), including former directors and KMPs, pursuant to the interim compounding order. The company received this interim order on 14th May 2026.
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