Piotex Industries Limited has issued a formal response to BSE Limited regarding inquiries about significant movement in its share price across exchanges. The company addressed the stock exchange's concerns through an official communication dated March 31, 2026.

Company's Official Response

In response to BSE's email reference L/SURV/ONL/PV/APJ/2025-2026/3473 dated March 30, 2026, Piotex Industries clarified its position on the recent share price volatility. The company's management provided a comprehensive explanation regarding the factors behind the price movement.

Management's Clarification

The company's leadership emphasized that there is no pending information or announcement that could be considered price-sensitive and potentially responsible for the significant movement in share price behavior. Management attributed the price fluctuations to market-driven factors rather than any undisclosed corporate developments.

The response was signed by two key executives:

• Mr. Abhay Shriram Asalkar, Managing Director (DIN: 06851614)
• Mr. Yogesh Omprakash Nimodiya, Executive Director (DIN: 06851606)

Regulatory Compliance Commitment

Piotex Industries reaffirmed its commitment to maintaining transparency and regulatory compliance. The company assured that it will continue to inform stock exchanges of all material information and announcements required under applicable regulations in a timely manner. This commitment underscores the company's dedication to maintaining proper disclosure standards and investor transparency.

Piotex Industries Limited , a company listed on the BSE SME platform, has provided clarification regarding the disclosure timeline of a significant income tax demand order, following an inquiry from the exchange about potential disclosure delays.

Income Tax Demand Order Details

The company has disclosed receiving a demand order from the Income Tax Department, Ministry of Finance, Government of India, under Section 156 of the Income Tax Act. The key details of this development are:

The income tax demand has arisen due to two primary reasons. First, an addition under Section 41(1) of the IT Act amounting to ₹34.85 lakhs. Second, and more significantly, an addition due to disallowance under Section 43B(h) of the IT Act for delay in payment to MSME creditors, totaling ₹16.23 crores.

Disclosure Timeline Clarification

Following BSE's inquiry about potential delays in disclosure under Regulation 30 of SEBI Listing Regulations, Piotex Industries has provided detailed clarification on the timeline of events:

The company has emphasized that there was no delay or inadvertent lapse in making the required disclosure under Regulation 30 of the SEBI Listing Regulations, as the disclosure was made promptly on the same day the demand order was received.

Company's Response Strategy

Piotex Industries has indicated that the demand is factually incorrect and not tenable in law. The company has outlined a two-pronged approach to address this matter:

• Filing a rectification application with the tax authority
• Appealing before the appellate authority

The management has stated that there shall be no material impact on the financials or operations of the company, as they believe the demand lacks merit.

Recent Financial Performance

The company had reported its unaudited financial results for the half-year ended September 30, 2025, showing mixed performance:

Despite marginal revenue growth, the company experienced a significant decline in net profit compared to the same period last year. The company continues to operate under accounting standards prescribed under section 133 of the Companies Act 2013, being exempted from mandatory IND-AS adoption due to its SME exchange listing.