Oriental Aromatics received a show cause-cum-demand notice from the Central GST and Central Excise, Vadodara, regarding transactions with a vendor classified as non-existent.

The company disclosed the receipt of the notice under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, on August 27, 2026. The communication was received via email on August 26, 2026.

Regulatory Action Details

The notice, bearing number Vad-1/Prev/SCN/51/Oriental/2026-27/Gr.E, was issued by the Office of the Principal Commissioner, Central GST and Central Excise, Vadodara-I. It is issued under Section 74 of the Central Goods and Services Tax Act, 2017.

The authority seeks details and clarifications concerning transactions undertaken with a specific vendor during the period from April 1, 2020, to March 31, 2025. The department’s investigation concluded that the vendor, whose GST registration was suspended, is a non-existent supplier.

Financial Implications

The notice proposes the recovery of Input Tax Credit (ITC) of ₹95,68,533 along with applicable interest and penalty under Section 74(1) of the CGST Act, 2017. Additionally, it proposes a penalty under Section 122(i) regarding ITC of ₹15,962 allegedly passed on to the non-existent supplier.

Oriental Aromatics stated that no financial liability has crystallized at this stage. The company is evaluating the transactions and will submit its response within prescribed timelines. Any potential liability will depend on the outcome of the proceedings.

What the Numbers Show

The regulatory scrutiny spans five financial years, indicating a retrospective review of compliance rather than an isolated incident. The proposed recovery amount of ₹95.68 lakh is specific to the ITC claimed from the identified vendor, suggesting the issue is contained to this particular supply chain relationship rather than a systemic failure across all vendors.

Oriental Aromatics Limited achieved a consolidated revenue milestone of ₹1,000 crore for the first time in FY26, despite challenging global market conditions. The company highlighted this growth during its 54th Annual General Meeting (AGM) held on August 18, 2026, attributing the performance to the resilience of its integrated business model across Fragrances & Flavours, Specialty Aroma Chemicals, and Camphor & Terpene Chemicals.

The Board of Directors recommended a final dividend of ₹0.50 per equity share for the financial year ended March 31, 2026. This payout represents a 10% dividend rate on the face value of the shares. The resolution was passed as an ordinary resolution during the meeting.

Key Operational Highlights

Chairman and Managing Director Dharmil A. Bodani emphasized disciplined capital allocation and operational efficiency as key priorities for the next phase of growth. He noted the commercialisation of the Mahad Greenfield facility as a significant step towards future expansion. Executive Director Shyamal A. Bodani added that the company is focusing on volume growth and improving margins by maximizing the potential of existing capacities through disciplined execution.

The company reported strengthening its global presence across more than 35 countries. Management identified strong growth opportunities emerging from premiumisation trends and increasing rural consumption in India.

AGM Proceedings and Governance

The AGM was conducted through Video Conferencing (VC) / Other Audio Visual Means (OAVM) in compliance with Ministry of Corporate Affairs General Circular no. 03/2025 dated September 22, 2025. The deemed venue was the company’s registered office in Mumbai.

As on the cut-off date of August 11, 2026, the company had 23,828 shareholders. A total of 52 shareholders attended the meeting via video conferencing. Remote e-voting was available from August 14, 2026, to August 17, 2026.

Resolutions Passed

Shareholders approved several ordinary and special resolutions during the meeting:

• Adoption of Annual Audited Standalone and Consolidated Financial Statements for FY26.
• Declaration of final dividend at ₹0.50 per equity share.
• Re-appointment of Mr. Satish Kumar Ray as a director retiring by rotation.
• Ratification of remuneration to M/s V. J. Talati & Co., Cost Auditors.
• Appointment of Mr. John Fitzgibbon Gloster as an Independent Director.

CS Shreyans Jain served as the Scrutinizer for the voting process. The consolidated voting results were made available on the company’s website and NSDL platform.