Hindustan Composites Limited Regulatory Clarification

Hindustan Composites Limited has provided a detailed clarification to the National Stock Exchange of India Limited regarding observations on their financial results submission for the quarter ended 30th June, 2026.

Date and Nature of Exchange Query

The NSE sought clarification via email dated 31st July, 2026 regarding financial results submitted by the Company to the Exchange on 23rd July, 2026. The observation specifically questioned: "Financial results submitted is not as per format prescribed under Schedule III of the Companies Act, 2013 or as per Indian Accounting Standard-Same figures in Standalone & Consolidated P&L."

Company's Clarification on Accounting Treatment

The Company clarified that its share of losses in the Joint Venture Company - Compo Advics (India) Private Limited, has exceeded its investment value. In compliance with IND AS 28, the Company has discontinued recognizing its share of further losses in the consolidated results from the financial year 2021-22.

In the Statement of Unaudited Consolidated Financial Results for the quarter ended 30th June, 2026, the Company added item number 4 - "Share of Joint venture #" mentioning 'Nil' with a corresponding statement in footnote note number 3 in the consolidated Financial Results.

Additional Clarification on Segment Figures

The Company further clarified that figures in Segment Assets and Segment Liabilities for the standalone and consolidated financial results are not the same, addressing the exchange's concern about identical figures.

Regulatory Compliance Statement

The Company confirmed that the standalone and consolidated financial results submitted to the Exchange are in conformity with the format prescribed under Schedule III of the Companies Act, 2013 and as per Indian Accounting Standard.

Signatory and Compliance Officer

The response was digitally signed by Arvind Purohit, Company Secretary & Compliance Officer (Membership No.: A33624) on 31st July, 2026 at 17:50:17 +05'30'.

Topic Tags: Regulatory Response, Financial Results Clarification, Accounting Standards Compliance, Joint Venture Accounting, IND AS 28