Minda Corporation Limited has informed stock exchanges about a significant regulatory development involving its material subsidiary. The company disclosed receiving a GST penalty order that could impact its subsidiary's operations, though management remains optimistic about the outcome.

GST Penalty Details

Minda Instruments Limited (MIL), a material subsidiary of Minda Corporation, received an order from the Joint Commissioner of GST & Central Excise, Chennai-Outer, Tamil Nadu. The order details are presented below:

Nature of Violation

The GST authorities have confirmed a demand of Rs 4,75,88,732 for the period covering FY 2019-2020 and 2020-2021. The penalty stems from alleged short payment of GST due to misclassification or wrongly classified goods under the relevant provisions of the CGST Act, 2017, IGST and similar provisions under TNGST Act.

The order was issued under Section 74(9) of CGST/TNGST, which also includes equivalent amounts of penalty and interest as applicable under the law. The violation relates to issues concerning the proper classification of goods under GST regulations.

Company's Response Strategy

Minda Corporation has outlined its approach to address the penalty order:

• Appeal Process: The company intends to file an appeal before the Appellate Authority within the time-limit prescribed under GST Law
• Case Assessment: Management believes in the merits of their case
• Financial Impact: The company does not expect the order to have any material financial impact
• Outcome Expectation: Management remains hopeful of a favourable outcome from the appellate process

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 read with Schedule III of SEBI Listing Regulations. Specifically, this falls under Clause 20 of Para A of Part A of Schedule III, which requires disclosure of material developments involving subsidiaries.

The company has fulfilled its obligation to inform both NSE and BSE about this development, ensuring transparency with stakeholders regarding potential regulatory challenges faced by its subsidiary operations.

Minda Corporation Limited has received an Assessment Order under Section 143(3) of the Income Tax Act, 1961 for Assessment Year 2023-24, as disclosed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Assessment Order Details

The Company received the Assessment Order dated March 28, 2026 from the Office of the Assistant Commissioner of Income Tax, Central Circle-13, Delhi. The order pertains to FY 2022-23 and includes certain additions and disallowances to the income returned by the Company in its income tax return.

Financial Impact

The Assessment Order has resulted in a significant financial demand on the Company. The total demand includes both the principal amount and accrued interest.

Company's Response and Next Steps

Minda Corporation is currently reviewing the Assessment Order in consultation with its tax and legal advisors. Based on professional advice, the Company intends to contest the matter before the appropriate appellate authorities. The Company has emphasized that there is no impact on financial, operational or other activities due to this Assessment Order.

Regulatory Compliance

The disclosure has been made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, specifically under Sub-Para 20 of Para A of Part A of Schedule III. This regulation requires listed companies to disclose material events and information that could impact investor decisions.

The Company has fulfilled its regulatory obligations by informing both the National Stock Exchange of India Limited and BSE Limited about this development in a timely manner.