NSE/BSE Codes: Symbol: ADFFOODS, Scrip Code: 519183

Summary of Key Information:

Nature of Event / Disclosure:

Regulatory filing pursuant to SEBI Listing Regulation 30, intimating a substantially favorable court order received by ADF Foods (USA) Ltd., a step-down wholly owned subsidiary, in ongoing litigation.

Involved Parties / Authorities:

  • Plaintiff: Ascot Valley Foods, Ltd.
  • Defendant / Counter-claimant: ADF Foods (USA) Ltd.
  • Adjudicating Authority: United States District Court, Southern District of New York

Date / Timeline of Event:

  • Date of Announcement: 28th June, 2026
  • Date of Court Order: The Findings of Fact and Conclusions of Law were issued recently, as per the disclosure.
  • Next Steps Timeline: The parties have 14 (fourteen) days from the date of the order to meet, confer, and raise objections to the proposed judgment and injunction order.

Brief Description of Outcome / Dispute:

The litigation originated from a case filed by Ascot Valley Foods against ADF Foods (USA) Ltd. for an alleged violation of a Co-pack agreement. ADF Foods (USA) Ltd. filed counterclaims, including for misappropriation of its proprietary recipes and trade secrets. The US Court has now issued an order that is substantially favorable to ADF Foods (USA) Ltd.

Impact of Outcome:

Financial Impact:
  • ADF Foods (USA) Ltd. Entitlement: The subsidiary is entitled to disgorgement damages of US$ 2,298,114 (US Dollars Two Million Two Hundred Ninety-Eight Thousand One Hundred Fourteen only). This amount represents Ascot's profits earned through the misappropriation of ADF's proprietary information for the period up to December 31, 2025.
  • Further Entitlement: The mechanism for computing additional damages for the period from 2026 onwards is to be established.
  • ADF Foods (USA) Ltd. Liability: The subsidiary's liability is restricted to US$ 100,706.96 (US Dollars One Hundred Thousand Seven Hundred Six and Ninety-Six Cents only) plus interest.
  • Immediate P&L Impact: The company explicitly states that the amounts referred to should not be construed as having any immediate financial statement or profit and loss impact. The final accounting will be assessed in accordance with applicable accounting standards upon completion of the relevant legal and accounting evaluation.
Operational / Business / Strategic Impact:

The favorable outcome strengthens the subsidiary's intellectual property rights and provides a legal precedent for protecting its proprietary recipes and trade secrets. The matter remains subject to final judgement and any further proceedings, indicating that operational closure is pending.

Next Steps / Required Actions:

1. ADF Foods (USA) Ltd. has been directed by the Court to file a proposed judgment for its trade secret claim.

2. This proposed judgment must include a mechanism for computing damages beyond the year 2025.

3. A proposed permanent injunction order is also to be filed.

4. The parties are to meet and confer within 14 days of the order. In case of any disagreement, objections can be raised to the proposed judgment and injunction.

5. The matter remains subject to final judgement, further proceedings, and recovery/enforcement processes.

6. ADF Foods (USA) Ltd. will take all necessary steps in accordance with the Court's directions.