Updater Services Limited has announced an investigation into INR 30 million in potential irregularities related to its subsidiary, Avon Solutions & Logistics Private Limited. In a disclosure made on November 4, 2025, the company revealed that trade receivables and trade payables as of September 30, 2025, amount to INR 280 million and INR 50 million, respectively, stemming from transactions with Avon. The management has flagged certain transactions involving sales to customers and services from vendors that are now under scrutiny, prompting the need for an investigation.

In light of these findings, Updater Services has taken a proactive step by recording a provision for doubtful recovery of INR 30 million against these trade receivables in their unaudited consolidated financial results. This provision reflects the company's preliminary assessment of the situation and indicates potential financial implications related to the irregularities identified. However, the management has stated that it is currently unable to ascertain the full impact of these issues on the overall financial results pending the completion of the investigation.

The company has committed to keeping the stock exchanges informed of any significant developments as they arise. Both the BSE and the NSE have been notified, with the relevant scrip codes being 543996 and UDS, respectively. As this situation unfolds, stakeholders and investors will be closely monitoring Updater Services for further updates regarding the investigation and its potential consequences on the company’s financial standing.