Varroc Engineering Limited has submitted a regulatory disclosure to the National Stock Exchange of India Limited and BSE Limited pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The disclosure concerns a compounding order received by the Company from the Reserve Bank of India (RBI), Foreign Exchange Department, Mumbai. The order, dated October 13, 2026, relates to the compounding of certain contraventions under the Foreign Exchange Management Act, 1999 (FEMA) read with the Foreign Exchange Management (Overseas Investment) Regulations 2022.
The specific contravention was a delay in the repatriation of dues receivable from a foreign entity, which violates Regulation 9(4) of the FEMA (Overseas Investment) Regulations, 2022.
The RBI has imposed a compounding amount of ₹3,91,000 (Rupees Three Lakh Ninety-One Thousand Only). The company's compounding application has been disposed of accordingly.
The company has assessed the impact and states that except for the payment of the compounding amount of ₹3,91,000, there is no material impact on its financial, operational, or other activities.
This disclosure is made for the information of the stock exchanges and stakeholders and is also available on the company's website at www.varroc.com. The letter was signed by Anil Ghatiya, Company Secretary & Compliance Officer, on October 14, 2026.