Aspinwall and Company Limited, one of Kerala’s oldest and most established companies, on 16 September 2025 informed the stock exchanges that it has received a notice from the Office of the Chokkad Grama Panchayat, Malappuram, Kerala under Section 219 of the Kerala Panchayat Raj Act. The notice, dated 12 September 2025, alleged that the company had engaged in improper management of wastewater, for which a penalty of ₹20,000 (Rupees Twenty Thousand only) was imposed.

In compliance with Regulation 30 of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, Aspinwall disclosed this development to the National Stock Exchange of India (NSE), confirming that while the penalty has been acknowledged, the company considers the water in question to be treated water and not wastewater. Accordingly, Aspinwall stated that it will be paying the penalty under protest.

Details of the Notice

The Chokkad Grama Panchayat issued the notice on 12 September 2025, invoking provisions of the Kerala Panchayat Raj Act, 1994. Under Section 219 of the Act, panchayats are empowered to take action against entities or individuals responsible for acts that are considered to contravene public health, sanitation, or environmental standards.

The notice alleged improper wastewater management practices at one of Aspinwall’s facilities. Based on this, a penalty of ₹20,000 was levied. The company disclosed that there was a short delay in reporting the notice due to its internal evaluation process before making a formal filing with the exchanges.

Aspinwall’s Response

Aspinwall clarified that the water in question was treated water, not untreated wastewater. Despite this, the company has decided to comply with the penalty demand while simultaneously registering its protest against the Panchayat’s categorisation.

In its disclosure signed by Neeraj R. Varma, Company Secretary (Membership No. FCS11669), Aspinwall stated:

• The company acknowledges receipt of the notice.

• The company will pay the penalty of ₹20,000 under protest.

• There is no material impact on the financial position, operational performance, or business activities of the company due to this development.

This careful positioning ensures that Aspinwall remains compliant with local regulatory requirements while safeguarding its corporate reputation by highlighting its treatment practices.

Financial and Operational Impact

Aspinwall emphasised that the penalty has no material financial or operational implications. With a diversified business model spanning logistics, coffee processing, plantations, and natural fibre products, a penalty of this scale is insignificant compared to the company’s financial position.

By proactively disclosing the notice under SEBI’s Regulation 30, Aspinwall has also ensured transparency with investors and regulators, reducing the likelihood of any misinterpretation or misinformation.

Corporate Governance and Compliance

This disclosure underscores Aspinwall’s approach to corporate governance and regulatory compliance. SEBI’s Regulation 30 mandates listed companies to promptly disclose material events that may have an impact on shareholders, creditors, or other stakeholders. Even though the company categorically stated that this penalty has no material impact, the decision to file the disclosure reflects a commitment to compliance and accountability.

Furthermore, by stating that the water was treated, Aspinwall is also protecting its environmental credibility, an increasingly important factor for investors, regulators, and customers in India and abroad.

Context of Environmental Compliance in Kerala

Kerala has been tightening its environmental regulations, particularly concerning wastewater management, pollution control, and sustainability practices. Local panchayats and municipalities play a frontline role in implementing these rules at the ground level.

In recent years, several companies in the state have been issued notices related to wastewater discharge, effluent treatment plants (ETPs), and solid waste management practices. While the penalties are often modest, the reputational aspect of such notices can carry significance.

For a company like Aspinwall, with operations in diverse sectors and a legacy dating back to the early 20th century, maintaining a strong image of sustainability and compliance is critical.

Investor and Stakeholder Perspective

From an investor’s perspective, the penalty is immaterial. However, what stands out is the timely disclosure and corporate transparency demonstrated by the company. By confirming that the issue will not impact financial or operational performance, Aspinwall has effectively reassured shareholders.

Such regulatory filings are closely monitored by investors, analysts, and credit rating agencies to gauge a company’s approach to governance, compliance, and risk management. Aspinwall’s proactive stance ensures that its long-standing reputation as a reliable corporate entity remains intact.

Conclusion

The notice issued by the Chokkad Grama Panchayat to Aspinwall and Company Limited over alleged wastewater mismanagement has resulted in a penalty of ₹20,000. While the company has agreed to pay the amount under protest, it maintains that the water was treated, not waste.

The disclosure makes it clear that the penalty will have no material financial, operational, or other business impact. Instead, the event highlights Aspinwall’s commitment to transparency and compliance under SEBI norms.

Going forward, as regulatory authorities in Kerala continue to enforce stricter environmental practices, companies like Aspinwall will likely strengthen their monitoring and compliance mechanisms to avoid even minor disputes. However, with a strong legacy, diversified business portfolio, and responsible disclosure practices, Aspinwall remains well-positioned to navigate such challenges without adverse effects on its long-term growth and reputation

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