Date: August 5, 2026

Regulatory Disclosure

Pakka Limited has received an Administrative Warning Letter/communication from the Securities and Exchange Board of India (SEBI) dated August 3, 2026, received via email on August 4, 2026. The company first became aware of this communication on August 5, 2026, at approximately 17:35 hours when it was forwarded by BSE Limited, as SEBI's original email had been automatically routed to the company's spam folder.

SEBI Administrative Warning Details

The warning letter was issued by SEBI's Corporation Finance Department, Division of Supervision, Enforcement and Complaints - 5, bearing reference number I/18007/2026.

Nature of Non-Compliance: SEBI identified non-compliance with Regulation 30 read with Para B of Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The specific violation involves the company's failure to disclose litigation proceedings initiated against its erstwhile distributor, Mr. Yogesh Kumar, involving an amount of approximately ₹3.47 crore.

Materiality Threshold Breach: SEBI noted that this litigation amount exceeded the company's own materiality threshold as determined under its Policy for Determination of Materiality of Events/Information. While the company submitted that the proceedings were initiated for recovery of outstanding dues arising from breach of contractual obligations and therefore didn't create any liability or financial exposure warranting disclosure, SEBI determined that disclosure under Sub-para 8 of Para B of Part A of Schedule III read with Regulation 30 ought to have been made to the Stock Exchange.

Required Actions

SEBI has advised Pakka Limited to:

  • Exercise due diligence while assessing materiality of events and determining disclosure obligations under Regulation 30
  • Place this communication and corrective actions taken before the Board of Directors
  • Submit the Board's comments to SEBI within 15 days of the Board meeting
  • Disclose both the administrative warning letter and the matter regarding recovery proceedings to the stock exchanges under Regulation 30

Impact Assessment

The company has stated that the impact on financial, operational or other activities is "Nil / Not quantifiable at this stage."

Company Response

The company is in the process of placing the communication before its Board of Directors and will take necessary steps as advised by SEBI. This information will also be made available on the company's website at https://www.pakka.com.