Key Developments

  • The Company does not concur with certain assertions and actions in the SEBI Order and is evaluating appropriate legal remedies, including appeal before the Securities Appellate Tribunal under Section 15T of the SEBI Act, 1992.
  • SEBI's order recorded no quantifiable gain from the alleged defaults, no quantifiable loss to investors, and no repeat default.

Financial Findings

  • Show cause notice had alleged overstated expenses of ₹48 crore
  • Final order limits finding to ₹26.34 crore and accepts the balance as genuine
  • For ₹26.34 crore, order states EKI did not establish that documents placed before MCA, Income Tax Department and independent experts were the same as those before SEBI

Revenue Recognition Matter

  • Order concerns timing of revenue recognition from carbon credit project contracts under Ind AS 115 during first three quarters of FY 2022-23
  • Company states this was a difference in professional judgment between management and then statutory auditor on a novel line of business
  • Company adopted more conservative view and revised figures before year's accounts were finalized
  • Audited financial statements for FY 2022-23 carry the revised numbers
  • Revisions were disclosed to stock exchanges at the time
  • Order treats revision as mitigating factor and notes management's position reflected application of mind to accounting question
  • Underlying contract amounts were received & income tax along with GST were paid in time

MCA Action

  • Ministry of Corporate Affairs considered inspection report under Section 206(5) of Companies Act, 2013
  • MCA by letter dated April 2, 2026 decided no penal action be taken under Sections 447 and 448 (fraud provisions)

Promoter Holdings

  • No promoter or promoter group entity sold shares during period under review
  • Promoter holding remained steady at about 73.4 to 73.5%
  • Order makes no finding that any funds reached the Managing Director, promoters or their relatives

Business Impact

  • Order places no restriction on EKI's business operations
  • Carbon project development, carbon credit transactions, clean cooking programmes and advisory work continue without interruption

Management Commentary

Manish Kumar Dabkara, Managing Director, stated: "Our approach through these proceedings has been to put every document on the table, and we will do the same before the Tribunal. I am confident the full record will support our position. Our teams remain focused on delivering for our clients and the households our projects reach, and our shareholders will hear from us at every step."