Flair Writing Industries Limited has disclosed receiving a final order from tax authorities demanding Rs. 73.14 lakh in Input Tax Credit (ITC) along with penalties and interest. The company informed stock exchanges about this development under regulatory disclosure requirements on March 27, 2026.

GST Order Details

The Office of the Assistant Commissioner of CGST and Central Excise Division-X Mumbai East Commissionerate issued the order under Section 74 of the CGST Act, 2017. The demand pertains to ITC disallowances for the period from April 2019 to March 2020.

Background and Process

The company initially received a show cause notice under Section 74 of the CGST Act, 2017 on September 29, 2025. The original notice disallowed ITC aggregating to Rs. 1.46 crore, which included both tax of Rs. 73.14 lakh and penalty of Rs. 73.14 lakh.

Following the submission of documents and reply by the company, the final order was issued under Section 74 of the CGST Act, 2017 and MGST Act, 2017 read with Section 20 of the IGST Act, 2017. The order demands interest on the taxes payable in addition to the principal tax amount.

Company's Response Strategy

Flair Writing Industries has indicated its intention to challenge the order through the appellate process. The company stated it will file an appeal based on strong merits by submitting its reply and submissions before the relevant authorities.

The management has assessed that there will be no material impact on the company's financials, operations, or other activities pursuant to the order. Any financial impact will be limited to the extent of the liability specified in the order, comprising tax, interest, and penalty, subject to the outcome of the appeal process.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This follows the company's earlier intimation dated September 30, 2025, regarding the initial show cause notice received from the tax authorities.

The company has fulfilled its obligation to inform both BSE Limited and National Stock Exchange of India Limited about this material development that could potentially impact stakeholder interests.

Flair Writing Industries Limited announced the appointment of Price Waterhouse Chartered Accountants LLP as its new statutory auditors following a board meeting held on March 11, 2026. The decision comes as the tenure of the existing statutory auditor concludes, marking a significant corporate governance development for the writing instruments manufacturer.

Board Meeting Outcome and Regulatory Compliance

The Board of Directors, acting on the recommendation of the Audit Committee, approved the appointment of M/s Price Waterhouse Chartered Accountants LLP (Firm Registration No. 012754N/N500016) as the company's statutory auditors. The board meeting commenced at 4:20 pm and concluded at 4:35 pm on March 11, 2026. The appointment was communicated to BSE Limited and National Stock Exchange of India Limited in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Transition from Existing Auditors

The appointment follows the completion of tenure by the existing statutory auditor, M/s Jeswani & Rathore (Chartered Accountants). This transition represents a planned succession in the company's audit arrangements, ensuring continuity in financial oversight and compliance requirements. The new appointment requires shareholder approval at the upcoming 10th Annual General Meeting.

About Price Waterhouse Chartered Accountants LLP

Price Waterhouse Chartered Accountants LLP brings substantial experience and infrastructure to the engagement. The firm was established in 1991 and converted into a limited liability partnership in 2014. With its registered office located at Sucheta Bhawan, 11A Vishnu Digambar Marg, New Delhi - 110 002, the firm operates an extensive network of 17 branch offices across various cities in India.

Professional Credentials and Network

The firm is registered with the Institute of Chartered Accountants of India and maintains membership in Price Waterhouse & Affiliates, a network of separate, distinct and independent Indian Chartered Accountant firms. This network registration (NRN/E/14) provides additional professional resources and expertise. Price Waterhouse holds a valid peer review certificate and has experience auditing various companies listed on Indian stock exchanges.

Stock Exchange Communication

Flair Writing Industries communicated the board meeting outcome to both BSE Limited (Scrip Code: 544030) and National Stock Exchange of India Limited (Symbol: FLAIR). The company provided comprehensive details as required under Regulation 30 of the Listing Regulations and applicable SEBI circulars, ensuring full regulatory compliance in the auditor appointment process.