Saraswati Saree Depot Limited received an aggregate penalty of ₹32,09,097 from the Office of the Joint Commissioner, CGST Kolhapur Commissionerate. The order, dated October 12, 2026, addresses alleged inadmissible Input Tax Credit (ITC) claims on IPO-related expenses.

The penalty was imposed under Section 73(9) and Section 74A(6) of the CGST Act, 2017, read with corresponding provisions of the MGST Act, 2017. The total amount comprises ₹1,85,391 under Section 73(9) and ₹30,23,706 under Section 74A(5)(i). The action stems from a Show Cause Notice issued by the DGGI, Pune Zonal Unit in December 2025, which the company contested in January 2026.

Regulatory Action Details

The tax authority determined that the ITC availed on IPO-related expenses was inadmissible under Sections 17(2) and 17(3) of the CGST Act, 2017. The company had filed a detailed written reply contesting these allegations before the Adjudicating Authority.

Company Response and Impact

Saraswati Saree Depot stated it does not accept the DRC-07 order and intends to contest it legally in higher Appellate Forums. The company asserts it has reasonable merit to win the case. Regarding financial impact, the company noted that the quantum of tax demand, interest, and penalties is not expected to have any adverse financial or operational effect. It further disclosed that sufficient input credit is available to service this demand.

Saraswati Saree Depot declared an interim dividend of ₹3.00 per equity share of face value ₹10 each for the financial year 2026-27. This payout represents a 30% return on the face value and amounts to a total outflow of ₹11.88 crore.

The Board of Directors approved this declaration during its meeting held on Thursday, September 24, 2026, at 4:00 pm at the company’s registered office in Kolhapur, Maharashtra. The meeting concluded at 4:30 pm.

Record Date and Eligibility

Pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company fixed Wednesday, September 30, 2026, as the record date. Shareholders whose names appear in the register of members on this date will be eligible to receive the interim dividend.

Trading Window Status

In compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, and the company’s internal Code of Conduct, the trading window was closed for designated persons and their relatives starting September 22, 2026. This closure remains in effect until 48 hours after the Board Meeting concludes and information regarding the dividend declaration is filed with the stock exchanges.

Regulatory Compliance

The intimation regarding the outcome of the Board Meeting was issued pursuant to Regulation 30 of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, and the Companies Act 2013. The notice was signed by Vidhi Bharat Oswal, Company Secretary & Compliance Officer, on September 24, 2026.