Varroc Engineering Limited has submitted its disclosure regarding asset cover for Non-Convertible Debentures (NCDs) as of December 31, 2025. The NCDs, with an outstanding amount of ₹1,718.75 crore, are secured by an exclusive charge on specific movable fixed assets of the company. The company confirmed that the asset cover, including interest obligations, is higher than the stipulated requirement of 1.10 times as per the Debenture Trust Deed. This compliance was verified by S R B C & CO LLP, Chartered Accountants, who issued an Independent Auditor’s Report on Security Cover, Compliance with Covenants, and book value of assets. The auditor's report, dated February 5, 2026, stated that the company has maintained the required 110% security cover and is in compliance with all covenants as of December 31, 2025. The report also confirmed that the book values of assets included in the statement are in agreement with the company's books of account. Notably, the auditor's review report on the unaudited standalone financial results for the quarter and nine months ended December 31, 2025, included a qualification. This qualification pertains to a settlement offer and arbitration proceedings initiated by TYC Parties alleging breach of a Transition Management Agreement related to income recognized from Chongqing Varroc TYC Auto Lamps Co., Ltd. The auditor could not comment on the said income and its consequential impact due to pending arbitration and insufficient audit evidence. This matter also led to a qualification in the previous quarter's report.