Arvind Fashions Limited has received a significant tax demand from the Central Tax authorities, prompting the company to make a regulatory disclosure under SEBI listing regulations. The fashion retailer disclosed receiving a demand notice on March 30, 2026, related to input tax credit matters spanning two assessment years.

Tax Demand Details

The Joint Commissioner of Central Tax, Bengaluru North Commissionerate has issued a demand for Rs 5,40,75,947 (IGST) to Arvind Fashions Limited. The demand pertains to alleged input tax credit availed in contravention of Section 16(2) of the CGST Act 2017 for assessment years 2019-2020 and 2020-2021.

Penalty and Additional Charges

Along with the primary demand, the tax authority has imposed additional financial obligations on the company:

• Penalty Amount: Rs 5,40,75,947 on the ITC demand
• Interest Charges: Applicable under Section 50(3) of the CGST Act 2017
• Total Exposure: The combined demand and penalty amount to over Rs 10 crores

Company's Response Strategy

Arvind Fashions Limited has outlined its approach to address the tax demand through proper legal channels. The company is preparing to file an appeal before the appropriate forum against the order within prescribed timelines. Management believes it has adequate factual and legal grounds to reasonably substantiate its position in the matter.

Expected Financial Impact

The company has indicated that it expects no financial impact from this demand, as it plans to dispute the entire amount. Arvind Fashions stated that no impact is expected on its financial position, operations, or other business activities, reflecting confidence in its legal position.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company filed the disclosure on March 31, 2026, with both BSE Limited and National Stock Exchange of India Limited, ensuring full compliance with listing requirements.

Arvind Fashions Limited has successfully concluded its postal ballot process, with shareholders approving all seven special resolutions related to employee stock option schemes on March 11, 2026. The company announced the results on March 12, 2026, following the submission of the scrutinizer's report by Mr. Hitesh Buch, Practicing Company Secretary.

Postal Ballot Overview

The postal ballot process was conducted entirely through electronic voting, in compliance with regulatory requirements. The voting period commenced at 09:00 AM on February 10, 2026, and concluded at 05:00 PM on March 11, 2026. National Securities Depository Limited provided the e-voting facility for the process.

Resolution Results Summary

All seven special resolutions received overwhelming shareholder support, with approval rates exceeding 99% across all items. The resolutions primarily focused on the administration and implementation of employee stock option schemes through irrevocable employee welfare trusts.

Shareholder Participation

The voting process saw significant participation across different shareholder categories. Promoter and promoter group shareholders held 46,906,356 shares and voted unanimously in favor of all resolutions with 100.00% approval. Public institutional investors, holding 48,161,420 shares, demonstrated strong support with participation rates of 90.43% and overwhelming approval for most resolutions.

ESOP Scheme Details

The approved resolutions encompass three distinct employee stock option schemes spanning different years. The 2025 scheme represents the company's latest initiative, while the 2022 and 2016 schemes involve ongoing programs requiring updated administrative structures. Each scheme includes provisions for administration through irrevocable employee welfare trusts and secondary acquisition mechanisms.

Regulatory Compliance

The postal ballot process adhered to all applicable regulations, including Section 108 of the Companies Act, 2013, SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, and various MCA circulars. The scrutinizer confirmed that the voting process was conducted in a fair and transparent manner, with proper safeguards for electronic voting integrity.

The resolutions are deemed to have been passed on March 11, 2026, being the last date of the e-voting period. The company has uploaded the complete voting results and scrutinizer's report on its website at www.arvindfashions.com for stakeholder reference.