GNG Electronics Limited has received a significant tax demand from GST authorities, with the Principal Commissioner of CGST & Central Excise, Mumbai East issuing an Order-in-Original imposing substantial financial obligations on the company. The communication was received on March 30, 2026, and pertains to the company's Input Tax Credit practices over a five-year period.

GST Order Details

The tax authorities have issued Order Reference No. ME/ADC/KK/262/GST/2025-26 dated March 27, 2026, which was communicated to the company via email. The order specifically addresses issues related to the availment and utilization of Input Tax Credit (ITC) by the company during its business operations.

Company's Response and Financial Impact

GNG Electronics has indicated that it does not expect any material financial impact from this order on the company's operations or financial position. The company has stated that there will be no material impact on its financial performance and no disruption to its operational activities as a result of this GST order.

The company management has decided to challenge the tax authorities' decision through the appropriate legal channels. GNG Electronics plans to file an appeal against the Order-in-Original, demonstrating its confidence in defending its Input Tax Credit practices during the specified period.

Regulatory Compliance

This disclosure has been made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has fulfilled its obligation to inform the stock exchanges about material developments that could potentially impact investor interests.

The order covers a substantial period of five years, from April 2019 to March 2024, indicating a comprehensive review of the company's GST compliance practices by the tax authorities. Despite the significant amounts involved in the demand and penalty, the company maintains its position that the order will not materially affect its business operations or financial standing.

GNG Electronics Limited has significantly enhanced its credit facility through a supplemental agreement with ICICI Bank Limited, marking a substantial expansion in its financial capacity. The company executed the Supplemental and Amendatory Agreement on March 10, 2026, with the formal documentation received on March 23, 2026.

Credit Facility Enhancement Details

The agreement represents a notable increase in the company's credit facility, expanding the overall limits substantially to support business operations.

Security and Terms Structure

The enhanced credit facility is secured through comprehensive collateral arrangements designed to protect the lender's interests while providing the company with necessary working capital flexibility.

Security Provisions:

• Pari Passu Charge on current assets and receivables (both present and future)
• Exclusive charge on Fixed Deposits
• Standard working capital facility terms

Regulatory Compliance and Disclosure

The agreement falls under standard banking arrangements without any related party transaction implications. Key regulatory aspects include:

• No shareholding relationship between parties
• No related party transaction classification
• Standard arm's length commercial terms
• No special rights regarding director appointments or capital structure restrictions

Strategic Implications

The 80.00% increase in credit facility from INR 400 million to INR 720 million demonstrates the company's growing financial requirements and ICICI Bank's confidence in GNG Electronics' business prospects. The facility is specifically designated for working capital requirements, indicating the company's focus on operational expansion and cash flow management.

The current outstanding amount of INR 380 million against the enhanced facility of INR 720 million provides the company with additional headroom of INR 340 million for future working capital needs.

Source: None/Company/INE18JU01028/31a153a5-c619-415b-a96a-1aac3c444bd1.pdf