Shlokka Dyes Limited has submitted its statement of deviation and variation for the use of proceeds from its public issue for the half-year ended September 30, 2026. The statement, reviewed by the Audit Committee and Board, highlights deviations in the utilization of funds for Capital Expense for Plant and Machinery and an excess utilization in Working Capital. These variations have been explained and will be regularized.
Shlokka Dyes Reports on Public Issue Fund Utilization
Shlokka Dyes Limited has formally submitted its Statement of Deviation and Variation regarding the utilization of funds raised through its public issue. This report covers the period ending September 30, 2026, and has been reviewed and taken on record by the company’s Audit Committee and Board of Directors.
Key Deviations Identified
The statement indicates deviations in the allocation and utilization of funds. Specifically:
- Capital Expense for Plant and Machinery: The company utilized ₹187.03 lakhs for vendor purchases that differed from the prospectus disclosures. An additional ₹110.11 lakhs was used for civil work-related expenses, which was not a specified use of proceeds. The management has represented that these expenditures were necessary for project implementation and operationalization.
- Working Capital Requirements: The company utilized ₹3,625.44 lakhs towards working capital, exceeding the allocated ₹2,800.00 lakhs by ₹825.44 lakhs. This excess utilization is attributed to business exigencies and operational requirements.
Audit Committee’s Comments
The Audit Committee has reviewed the management’s explanations for these deviations. They noted that the expenditures were incurred for the project’s implementation and operationalization, aligning with the overall capital expenditure object. The committee also acknowledged that the utilization was based on business exigencies and operational needs, and the company intends to regularize and align the utilization within the overall IPO proceeds limits in subsequent periods. Necessary disclosures have been made in the Monitoring Agency Report and other regulatory filings.
A certificate from the statutory auditors, M/s Patel & Panchal, Chartered Accountants, attesting to the fund utilization has also been attached for reference.
Source: BSE
