Varroc Engineering Limited has submitted a disclosure regarding the asset cover for its Non-Convertible Debentures (NCDs) as of December 31, 2025, in compliance with Regulation 54 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The NCDs, with an outstanding amount of ₹1,718.75 crore as of December 31, 2025, are secured by an exclusive charge on specific movable fixed assets of the Company. The asset cover, including interest obligations, is reported to be higher than the required 1.10 times as stipulated in the Debenture Trust Deed. An independent auditor's report from S R B C & CO LLP, Chartered Accountants, has been provided, examining the security cover, compliance with covenants, and book value of assets. The auditors performed a limited review and concluded that the Company has maintained the required 110% security cover and is in compliance with all covenants as of December 31, 2025. The book values of the assets included in the statement are in agreement with the Company's books of account. The report also noted a qualification from the previous review concerning a settlement offer from TYC Parties alleging breach of a Transition Management Agreement. The company recognized income related to this under 'Revenue from operations' in Q2 FY26, and pending arbitration, the consequential impact on financial results could not be determined. This qualification carried forward from the quarter ended September 30, 2025.