Salora International Limited has disclosed to stock exchanges that the GST Department has provisionally attached its bank accounts under regulatory provisions. The company received the official communication from GST authorities on March 20, 2026, and made the mandatory disclosure on March 21, 2026, within 24 hours of receipt as required under SEBI listing regulations.

GST Department Action Details

The company received official communication from the GST Department regarding the provisional attachment of bank accounts under Section 83 of the Central Goods and Services Tax Act, 2017. The action affects the company's accounts maintained with two major banks.

Company's Position and Clarifications

Salora International has emphasized several key points regarding the nature of these proceedings. The company stated that the communication from GST authorities is purely interim and provisional in nature, not constituting a final adjudication or determination of any tax liability against the company.

The management clarified that the proceedings initiated by the concerned authority are currently at a preliminary stage and remain subject to due process of law. The company characterized these communications as being undertaken in the ordinary course of business and of a regular business nature, stating that no adverse inference or conclusive liability may be drawn at this stage.

Legal Response Strategy

The company has outlined its comprehensive approach to addressing the provisional attachment through proper legal channels. Salora International is in the process of availing appropriate legal remedies, including filing necessary objections and appeals before competent authorities.

Regulatory Disclosure Context

The disclosure was made pursuant to Regulation 30(12) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company noted that while this development may not strictly fall under mandatory disclosures as per the regulation, they are making this disclosure as a matter of abundant caution for investor transparency.

Company Secretary and Compliance Officer Mohd Khizar Ali Khan signed the communication to BSE Limited, emphasizing the company's commitment to keeping investors informed about material developments. The disclosure was made to ensure proper dissemination of information on the exchange platform for the benefit of investors.

Salora International Limited has announced its unaudited financial results for the quarter ended December 31, 2025, revealing challenging operational performance with increased losses and declining revenue. The Board of Directors approved these results during their 306th meeting held on February 7, 2026, with the statutory auditors providing an unmodified opinion on the financial statements.

Financial Performance Overview

The company's financial performance showed significant deterioration across key metrics during the third quarter of fiscal year 2026. The results reflect ongoing operational challenges and reduced business activity compared to the previous year.

Operational Expenses and Cost Structure

Total expenses for the quarter amounted to ₹1,713.03 lacs compared to ₹4,248.36 lacs in Q3 FY25. The major expense components included purchases of stock in trade at ₹1,323.06 lacs, employee benefits expense of ₹44.60 lacs, and finance costs of ₹37.43 lacs. Changes in inventories showed a positive impact of ₹200.05 lacs during the quarter.

Nine-Month Performance Analysis

For the nine months ended December 31, 2025, Salora International's performance remained under pressure with revenue declining significantly year-over-year.

Key Financial Highlights

The company maintained its paid-up equity share capital at ₹880.73 lacs with a face value of ₹10.00 per share. Other income for the quarter stood at ₹5.03 lacs compared to ₹32.85 lacs in the previous year. The company reported deferred tax assets of ₹2,258.22 lacs as of December 31, 2025, which management expects to realize based on enhanced product portfolio and new business strategy.

Related Party Transactions

During the nine-month period, the company conducted transactions with Devi Electronics Pvt. Ltd., including sale of finished goods worth ₹909.71 lacs, expenses/payments on their behalf amounting to ₹0.30 lacs, and rent income of ₹0.95 lacs. These transactions were certified to be conducted in the ordinary course of business at arm's length pricing.

Regulatory and Compliance Updates

The company's financial results received an unmodified opinion from statutory auditors O P Bagla & Co LLP. The results were prepared in accordance with Indian Accounting Standard 34 for interim financial reporting. Additionally, the company noted that the New Labour Codes became effective from November 21, 2025, with minimal incremental impact on the financial results for the current period.