Diffusion engineers Limited has submitted its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended March 31, 2026. The certificate was filed with both the National Stock Exchange of India Limited and BSE Limited on April 07, 2026, as part of mandatory regulatory compliance requirements.

Certificate Details and Compliance

The certificate was issued by Bigshare Services Pvt. Ltd., the company's Registrar and Transfer Agent, dated April 06, 2026. The document confirms that all securities received from depository participants for dematerialization up to March 31, 2026, were properly processed and confirmed to the depositories within the prescribed timeframe.

Regulatory Compliance Confirmation

The certificate confirms several key compliance aspects:

• Securities received for dematerialization were confirmed (accepted/rejected) to depositories within the stipulated period
• All securities comprised in the certificates have been listed on stock exchanges where earlier issued securities are listed
• Security certificates received for dematerialization have been mutilated and cancelled after due verification
• Names of depositories have been substituted in the register of members as registered owners within 15 days of receipt

Company Information and Filing Details

The submission was signed by Chanchal Jaiswal, Company Secretary and Compliance Officer (ICSI Membership No.: A67136), on behalf of Diffusion Engineers Limited. The company is listed on NSE with symbol DIFFNKG and on BSE with scrip code 544264.

The company's registered office is located at T-5 & 6, M.I.D.C., Hingna Industrial Area, Nagpur - 440 016, Maharashtra. This quarterly filing demonstrates the company's adherence to SEBI's regulatory framework for depositories and participants, ensuring proper handling and processing of securities in dematerialized form.

Diffusion engineers has received a GST demand order from tax authorities requiring recovery of ₹72,13,794/- for alleged excess Input Tax Credit (ITC) availment during the financial year 2019-20. The company disclosed this development through a regulatory filing under Regulation 30 of SEBI listing regulations.

GST Order Details

The Assistant Commissioner, Central GST and Central Excise, Division-Hingna, Nagpur-I issued the order dated March 24, 2026, which was received by the company on March 25, 2026. The order was passed under Section 74 of the Central Goods and Services Tax Act, 2017.

Financial Implications

The GST order imposes multiple financial obligations on the company:

• Primary Demand: ₹72,13,794/- for alleged excess ITC availment
• Interest: Applicable interest under Section 50 of the CGST Act on the tax demand
• Penalty: ₹72,13,794/- under Section 74 of the CGST Act

The total financial impact includes both the principal demand and penalty amount, along with applicable interest charges.

Company's Response Strategy

Diffusion Engineers is currently evaluating the order and has announced its intention to challenge the proposed demand and penalty before the appropriate authority. The company's assessment indicates that the demand is not sustainable based on their review of the case.

Impact Assessment

According to the company's preliminary evaluation, the GST demand will not have any material impact on its financial position, operations, or other business activities. This assessment is based on the company's belief that the demand lacks merit and can be successfully contested through proper legal channels.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company provided comprehensive details as required under the regulatory framework, including the nature of the order, financial implications, and expected impact on business operations.