Exato technologies has received a tax demand order from GST authorities, as disclosed in a regulatory filing on March 25, 2026. The order pertains to Input Tax Credit (ITC) discrepancies identified for the financial year 2019-20.

Order Details and Financial Impact

The Office of the Assistant Commissioner of CGST & Central Excise, division-X, Mumbai East, has confirmed a demand totaling ₹41,046 in Input Tax Credit for the period from April 2019 to March 2020. The breakdown and implications are presented below:

Alleged Violations

The GST authorities have identified specific contraventions under the Central Goods and Services Tax Act, 2017. The violations include:

• Section 16 & 17 violations: Failure to reverse excess input tax credit availed during FY 2019-20
• Section 59 violations: Incorrect self-assessment of tax liability for the same financial year

These violations relate to the company's GST compliance practices and input tax credit management during the specified period.

Company Response and Assessment

Exato Technologies has indicated that the financial impact of this order is expected to be limited. The company stated that considering the quantum involved, no material financial or operational impact is anticipated. Management is currently evaluating the order and considering appropriate action, including the possibility of filing an appeal against the demand.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has provided detailed information as required under Schedule III of the SEBI regulations and additional disclosures as per the SEBI Master Circular dated January 30, 2026. This ensures full transparency with stakeholders regarding the regulatory proceedings and their potential implications.

Exato technologies has incorporated a wholly owned subsidiary in Australia as part of its international expansion strategy. The company announced the establishment of EXATO TECHNOLOGIES PTY LTD on March 20, 2026, marking a significant milestone in its growth trajectory.

Subsidiary Incorporation Details

The new subsidiary has been registered under the Corporations Act, 2001 and is registered in New South Wales, Australia. The incorporation follows the approval granted by the Board of Directors at their meeting held on February 13, 2026.

Business Operations and Objectives

The Australian subsidiary will operate in the Information Technology industry, focusing on core IT services. The primary business objectives include:

• Designing and development of software applications
• Deployment of software solutions
• Providing IT-enabled services
• Expanding the company's international presence

Financial Structure

Exato Technologies subscribed to the initial share capital through cash consideration. The company acquired 75,000 shares at face value of 1 AUD each, maintaining complete ownership and control of the subsidiary.

Regulatory Compliance

The incorporation has been completed in accordance with Australian corporate laws. As this is a new incorporation rather than an acquisition, no additional governmental or regulatory approvals are required beyond the standard registration process. The company has fulfilled all disclosure requirements under Regulation 30 of SEBI (LODR) Regulations, 2015.

Strategic Impact

The establishment of the Australian subsidiary represents Exato Technologies' commitment to expanding its global footprint in the IT services sector. As a newly incorporated entity, the subsidiary will commence business operations in alignment with the company's core competencies in software development and IT solutions. This expansion positions the company to serve international markets and leverage opportunities in the Australian IT industry.