Details of Regulatory Action
- The Company received a Show Cause Notice (SCN) dated August 12, 2026 from the Securities and Exchange Board of India
- The SCN was issued by the Office of the Chief General Manager & Adjudicating Officer under Rule 4(1) of the SEBI (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995
- The notice initiates adjudication proceedings and appoints an Adjudicating Officer under Section 15-I of the SEBI Act, 1992 and Rule 3 of SEBI Adjudication Rules
- The proceedings will inquire into alleged violations under Section 15A(b) and 15HB of the SEBI Act, 1992
Alleged Violations/Contraventions
The SCN alleges the following violations:
Accounting Standards Non-Compliance
1. Non-recognition of interest on loan from banks in the preparation and presentation of Standalone and Consolidated Financial Statements and Financial results for the Financial Year 2023
2. This alleged non-compliance relates to Indian Accounting Standards: Ind AS 1, Ind AS 23, Ind AS 32, and Ind AS 109
3. Alleged failure to make disclosures in financial statements regarding departure from accounting standards, resulting in violation of Ind AS-1
Governance Non-Compliance
1. Non-filling of the position of Managing Director from October 10, 2022 to February 12, 2024 (exceeding three months)
2. Non-filling of the position of Chief Financial Officer from July 1, 2022 to February 12, 2024 (exceeding three months)
3. These alleged vacancies result in non-compliance with Regulations 17(1E), 26A(1) and 26A(2) of the SEBI (LODR) Regulations, 2015
Financial Impact Assessment
- The SCN does not quantify any monetary penalty
- Financial implications, if any, will depend upon the outcome of the adjudication proceedings
- At present, the impact cannot be ascertained
Company Response and Additional Information
- The disclosure was signed by Mr. Mithlesh Jaiswal, Executive Director & CFO (DIN: 07946915)
- The information is available on the company website at www.kridhan.com
- The disclosure was made on August 13, 2026