Epack Prefab Technologies Fined Rs 6.12 Lakh for Governance Lapses

Epack Prefab Technologies Ltd has been levied a total penalty of Rs 6.12 lakh by stock exchanges for non-compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, concerning the composition of its Audit Committee and Nomination and Remuneration Committee.

• Total Penalties: ₹6.12 lakh
• Reporting Period: October 1, 2025, to March 2, 2026

Reader Takeaway: Governance oversight lapse addressed, but director's DIN issue is a compliance watch point.

What just happened

The company's Annual Secretarial Compliance Report for the fiscal year 2025-26 revealed non-compliance with Regulation 18(1) and 19(1) of the SEBI (LODR) Regulations, 2015. This pertains to the required composition of the Audit Committee and the Nomination and Remuneration Committee. Consequently, stock exchanges (NSE & BSE) imposed penalties.

The total fine for the Audit Committee non-compliance was ₹3.06 lakh, and an additional ₹3.06 lakh was fined for the Nomination and Remuneration Committee non-compliance, summing up to ₹6.12 lakh.

Why this matters

These penalties highlight a lapse in the company's board-level governance oversight during the specified period. While the issues have been rectified by reconstituting the committees, the fines represent a direct financial impact and indicate past procedural shortcomings.

The backstory

Epack Prefab Technologies is a company focused on prefabricated construction solutions. This filing concerns its adherence to SEBI's listing regulations, which mandate specific compositions for key board committees to ensure independent oversight and proper governance.

What changes now

The company has already reconstituted both the Audit Committee and the Nomination and Remuneration Committee to comply with statutory requirements. This action addresses the immediate non-compliance identified in the secretarial report.

Risks to watch

While the committee composition issue is resolved, there's an administrative matter concerning a Whole-Time Director, Mr. Nikhil Bothra, who holds two Director Identification Numbers (DINs). The company has initiated the process to surrender the duplicate DIN by filing Form DIR-5. This matter is pending adjudication by the Registrar of Companies (ROC), Kanpur, under Section 454 of the Companies Act, 2013. The auditor has confirmed this does not immediately lead to disqualification under Section 164 of the Companies Act, 2013, but it remains an administrative compliance process to monitor.

Peer comparison

While specific peer data on similar compliance lapses and penalties isn't immediately available from this filing, adherence to SEBI LODR regulations regarding committee composition is a standard expectation for all listed entities. Companies often face penalties for such oversights.

Context metrics (time-bound)

• Audit Committee Fine: ₹1.84 lakh (Oct 1, 2025 - Dec 31, 2025) + ₹1.22 lakh (Jan 1, 2026 - Mar 2, 2026) = ₹3.06 lakh total.
• Nomination & Remuneration Committee Fine: ₹1.84 lakh (Oct 1, 2025 - Dec 31, 2025) + ₹1.22 lakh (Jan 1, 2026 - Mar 2, 2026) = ₹3.06 lakh total.
• Total Penalty: ₹6.12 lakh.

What to track next

Investors should closely monitor the outcome of the adjudication process by the ROC, Kanpur, regarding the director's duplicate DIN. Additionally, continued adherence to secretarial and governance norms in future filings will be crucial.