Raghuvir Synthetics has clarified the reason for a one-day delay in disclosing a ₹2.24 crore GST show cause notice, attributing it to the time required for internal review and consultation with tax professionals.

The company stated that the notice contained detailed tax computations requiring examination and verification of underlying records before finalizing the particulars for stock exchange disclosure. The disclosure was submitted on August 21, 2026, against the prescribed timeline of August 20, 2026.

Details of the Proceeding

The Ahmedabad Zonal Unit of the Directorate General of GST Intelligence issued the notice on August 18, 2026, under section 74/74A of the Central Goods and Services Tax Act, 2017, read with section 74/74A of the Gujarat GST Act, 2017. The company also received Form GST DRC-01 on August 19, 2026.

The notice covers the period from FY21 to FY25. The GST Department alleges violations related to the availment and utilization of input tax credit under applicable provisions. The aggregate amount stated in the notice includes tax, interest, and applicable penalties.

Company Response

Raghuvir Synthetics maintains that it availed input tax credit in accordance with GST laws. The company stated there is no material impact on its operations from this development.

Management will submit a formal response within the prescribed timeline. The company will continue to monitor the matter and disclose any material developments as required by SEBI regulations.

Raghuvir Synthetics Limited reported a net loss of ₹136.78 lakh for the financial year ended March 31, 2026, a significant reversal from the net profit of ₹906.21 lakh recorded in the previous year. Revenue from operations declined to ₹2,551.91 crore from ₹3,327.47 crore in FY25. The board approved the audited standalone and consolidated financial results at a meeting held on May 28, 2026.

Financial Performance

The company's total income for FY26 stood at ₹2,565.64 crore, down from ₹3,368.82 crore in the prior year. Total expenses increased to ₹2,578.40 crore from ₹3,280.91 crore. For the quarter ended March 31, 2026, the company reported a net loss of ₹36.75 lakh on revenue of ₹241.76 crore.

Operational Highlights and Disclosures

The board appointed M/s. Ashok K. Bhatt & Co. as the internal auditor for FY 2026-2027. The statutory auditors, G. K. Choksi & Co., issued an unmodified opinion on the financial results. However, the auditors drew attention to a search operation initiated by the Directorate General of GST Intelligence (DGGI), Ahmedabad Zonal Unit, under Section 67 of the Central Goods and Services Tax Act, 2017. The company deposited ₹1.88 crore under protest following oral instructions from the officials. Management stated it does not expect any material impact on the financial or operational position.

Consolidated Results

On a consolidated basis, the company reported a net loss of ₹128.23 lakh for FY26, compared to a net profit of ₹898.98 lakh in FY25. Revenue from operations for the group stood at ₹2,551.91 crore. The results include the financials of Dreamsoft Bedsheet Private Limited up to March 30, 2026, following the disposal of the company's 51% equity stake in the subsidiary.