Zuari Agro Chemicals Limited received four interim orders from the Ministry of Corporate Affairs on May 8, 2026, for procedural lapses in financial reporting between 2019–20 and 2022–23.
Khushi Jain | May 11, 2026 |
Zuari Agro’s receives Interim MCA Orders in relation to compounding applications filed for Ind-AS Non-Compliance
Zuari Agro Chemicals Limited informed the stock exchanges that it received four interim orders from the Regional Director, Western Region, Ministry of Corporate Affairs, Mumbai, on May 8, 2026.
These orders relate to compounding applications filed under Section 441 of the Companies Act, 2013, for alleged violations of Section 129 concerning accounting disclosures and presentation.
The issues include not showing basic and diluted EPS separately (IND AS-33), not properly assessing impairment of investment in Zuari Farmhub Limited (IND AS-36), lapses in deferred tax asset disclosures (IND AS-37), and not separately disclosing legal and professional expenses under Schedule III, across financial years 2019–20 to 2022–23.
The company clarified that these were procedural lapses, not intentional, and that there is no material impact on its financials or operations.
No compounding fees were levied on the company itself, but a total Rs. 66 lakhs was imposed on certain directors, the CFO, ex-directors, and ex-CFO.
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