Dreamfolks Services Limited has received a show cause notice from the Office of the Assistant Commissioner of Central Tax, Gachibowli Division, for a total demand of ₹1.87 crore related to Input Tax Credit (ITC) discrepancies for Financial Year 2022-23.

The notice, dated September 30, 2026, was issued under Section 73(1) of the Central Goods and Services Tax Act, 2017. It pertains to differences between ITC reported in FORM GSTR-3B and that reflected in FORM GSTR-2A.

Breakdown of Demand

The total demand comprises tax and penalty amounts across IGST, CGST, and SGST heads. The specific breakdown is as follows:

Company Response and Impact

The company disclosed this development under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. In its filing, Dreamfolks stated that it does not presently envisage any immediate material impact on its financials, operations, or other activities arising from the matter.

The company is currently in the process of submitting an appropriate reply to the show cause notice within the prescribed timeline. The disclosure was signed by Harshit Gupta, Company Secretary and Compliance Officer.

Dreamfolks Services Limited shareholders approved the adoption of audited financial statements for FY26 and several board appointments during its 18th Annual General Meeting held on September 28, 2026.

The virtual meeting, conducted via Video Conferencing, saw all six proposed resolutions passed with overwhelming majority support. A total of 70 members attended the session, which commenced at 11:30 am and concluded at 12:38 pm. The proceedings complied with the Companies Act, 2013, and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Key resolutions passed

The members transacted both ordinary and special business items as outlined in the notice dated August 13, 2026. The following resolutions were considered through remote e-voting and e-voting at the meeting:

Auditor observations and compliance

The Statutory Auditors' Report was taken as read during the meeting. The report remained unmodified but included an Emphasis of Matter paragraph relating to a petition filed under the Insolvency and Bankruptcy Code, 2016. Details regarding this matter have been disclosed in the Board's Report and relevant notes to the Standalone and Consolidated Financial Statements.

Additionally, the Statutory Auditors made certain observations under the Companies (Auditor's Report) Order, 2020 (CARO 2020). Responses to these observations were read out to the members. The Secretarial Audit Report provided by M/s DMK Associates was also unmodified and taken as read.

Board composition and attendance

The meeting was chaired by Ms. Liberatha Peter Kallat, Chairperson and Managing Director. Several directors attended virtually, including Mr. Mukesh Yadav, Mr. Dinesh Nagpal, Mr. Balaji Srinivasan, Mr. Ravindra Pandey, Ms. Prerna Kohli, Mr. Sunil Kulkarni, and Mr. Lloyd Mathias.

Ms. Monica Widhani, Independent Director and Chairperson of the Nomination and Remuneration Committee, sought leave of absence. She authorized Mr. Sunil Kulkarni to represent the committee at the AGM. Senior officials present included Chief Financial Officer Mr. Shekhar Sood and Chief Business Officer Mr. Sandeep Sonawane.

What the Numbers Show

Voting data reveals a stark divergence in shareholder participation between promoter and public categories. Promoters and the Promoter Group, holding 3,50,07,532 shares, voted on 99.9991% of their holdings, casting 3,50,07,232 votes in favour across all resolutions. In contrast, Public Non-Institutional shareholders, holding 1,82,46,873 shares, voted on only 1.23% of their holdings. Despite this low public turnout, dissenting votes from the public category ranged from 4,398 to 4,894 votes per resolution, representing less than 2.2% of the polled public votes but a negligible fraction of total company shares.