Delta Manufacturing GST scrutiny proceedings dropped for FY 2023-24

Delta Manufacturing Limited announced that the Deputy Commissioner of State Tax, Ambad has dropped the GST scrutiny proceedings against the company for the Financial Year 2023-24. The authority passed an order to this effect on June 10, 2026, concluding the matter initiated under Section 61 of the CGST/SGST Act, 2017. The company discharged a total liability of Rs. 2,11,442, comprising GST and interest, to resolve the identified discrepancies.

The scrutiny concerned the GSTR-3B returns for the period from April 2023 to March 2024. The tax authority had initially identified provisional discrepancies amounting to approximately Rs. 2,39,363.43. Following the company's response and reconciliation, the proceedings were dropped, though the company accepted one specific discrepancy regarding excess Input Tax Credit (ITC) availment.

Resolution of Discrepancies

The company addressed the provisional discrepancies through reconciliation and payment of dues. The authority withdrew the demand for unreconciled tax and ITC reported in Form GSTR-9C after accepting the company's explanations.

Description	Amount (Rs.)
Excess ITC availment accepted	1,43,455.20
Unreconciled tax/ITC demand withdrawn	95,908.23
Total provisional discrepancies	2,39,363.43

Financial Impact

To resolve the matter, Delta Manufacturing discharged the specific tax liabilities associated with the accepted discrepancy. The company confirmed that there is no material impact on its financials, operations, or other activities following the resolution of these proceedings.

Component	Amount (Rs.)
GST Liability Discharged	1,43,456
Interest Paid	67,986
Total Liability	2,11,442

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
0.0%	-4.52%	-4.96%	-16.80%	-41.73%	+14.37%

Delta Manufacturing has reported a net loss of ₹914.10 lakh for the financial year ended March 31, 2026, narrowing from a loss of ₹1,154.95 lakh in the previous year. Revenue from operations for the year rose to ₹6,186.74 lakh from ₹5,583.52 lakh in FY25. The company's board of directors approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, at a meeting held on May 27, 2026.

The standalone financial results indicate that the company's total income for FY26 stood at ₹6,336.81 lakh, up from ₹5,617.77 lakh in the previous year. Total expenses increased to ₹6,108.62 lakh from ₹5,527.41 lakh. For the quarter ended March 31, 2026, the company reported a net loss of ₹170.10 lakh, compared to a loss of ₹18.98 lakh in the same quarter last year.

Financial Performance

Metric	FY26 (₹ in lakhs)	FY25 (₹ in lakhs)
Revenue from operations	6,186.74	5,583.52
Total income	6,336.81	5,617.77
Total expenses	6,108.62	5,527.41
Net profit/(loss)	(914.10)	(1,154.95)
Basic EPS (₹)	(8.43)	(10.64)

The company reported that the operational performance of its hard ferrite and soft ferrite business is classified under discontinued operations. Post the board's approval, the process of closure of the hard ferrite division located in Ambad, Nashik, has been completed in all aspects.

Auditor's Report

M H S & Associates, Chartered Accountants, audited the standalone and consolidated annual financial results. The auditors issued an unmodified opinion, stating that the financial results present a true and fair view in conformity with the applicable Indian Accounting Standards (Ind AS). The consolidated results include the financials of subsidiary DML Ferrites Private Limited and joint venture MMG Ferrites Private Limited.

The intimation was signed by Madhuri Pawar, Company Secretary, and Dr. Ram M. Shroff, Managing Director & Executive Vice Chairman, on behalf of Delta Manufacturing Limited.