Star Delta Transformers Receives ESIC Recovery Order of ₹2.8 Million, Initiates Compliance Measures

Star Delta Transformers Responds to ₹2.8 Million ESIC Recovery Order

Star Delta Transformers Limited announced the receipt of a recovery order from the Employees’ State Insurance Corporation (ESIC) amounting to ₹2.8 million. The company is currently examining the details of the order and formulating a plan to address the demands in line with statutory obligations.

The recovery order pertains to social security contributions and reflects regulatory oversight common in large industrial firms with substantial employee bases. Management reassures stakeholders that the matter is procedural and does not affect operational continuity or financial stability.

Star Delta Transformers remains committed to adhering strictly to labor and social security laws, ensuring that employee welfare obligations are met transparently. The company’s focus continues on efficient manufacturing and engineering services, with operational performance unaffected by this regulatory matter.

Investor relations teams have highlighted that such recovery orders, while procedural, underscore the importance of ongoing compliance risk management and proactive dialogue with regulatory bodies to mitigate future liabilities.

Stakeholders can view this development as a standard corporate governance exercise designed to uphold regulatory compliance without disrupting business momentum.

Key Highlights

ESIC Recovery Order: Star Delta Transformers received a demand for ₹2.8 million related to ESIC contributions.

Regulatory Compliance: The issue pertains to statutory social security payments and legal procedures.

Operational Impact: No disruption or material financial impact anticipated as a result of the recovery order.

Corporate Governance: Emphasis on transparent adherence to labor and social security laws.

Risk Management: Ongoing focus on regulatory compliance to minimize future liabilities.

Investor Assurance: Management reaffirmed stable operational performance and effective governance.

Source: Star Delta Transformers Limited official announcements and regulatory disclosures, October 2025.