Sterling & Wilson Renewable Energy Limited has received a fresh order from GST authorities disallowing input tax credit for the period April 2019 to March 2020, resulting in a total demand of INR 26.38 Lakhs including tax and penalty. The company disclosed this latest development under Regulation 30 of the SEBI Listing Regulations on April 1, 2026.

Latest GST Order Details

The Superintendent, CGST, Vidhyadhar Nagar, Jaipur, Rajasthan issued an order dated March 31, 2026, which was received by the company on the same date. This order specifically targets input tax credit disallowances for transactions during the April 2019 to March 2020 period.

Regulatory Compliance Disclosure

The company has provided comprehensive details in compliance with SEBI regulations, confirming that no aberrations or non-compliances were identified by the GST authorities beyond the input tax credit disallowance issue. The disclosure was made by Chief Financial Officer Ajit Pratap Singh, who confirmed the accuracy and completeness of the information provided.

Financial Impact Assessment

Sterling & Wilson Renewable Energy Limited has assessed that there is no material impact on the company's operations resulting from this GST order. The company is currently in the process of evaluating the contents of the order and determining the appropriate future course of action to address the matter.

Sterling & Wilson Renewable Energy Limited has issued a Parent Company Guarantee (PCG) of USD 31 million to support its step-down subsidiary's solar power operations in South Africa. The guarantee, equivalent to approximately INR 293.04 crore, was provided to ABSA Bank Limited as part of a structured financing arrangement for renewable energy projects.

Guarantee Structure and Purpose

The PCG serves as security for a guarantees facility, specifically a non-fund based working capital facility, availed by Sterling and Wilson Engineering (Pty) Ltd. This step-down subsidiary is utilizing the facility to support solar power projects across South Africa, demonstrating the company's continued expansion in the African renewable energy market.

Regulatory Compliance and Disclosure

The announcement was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company confirmed that the transaction was conducted at arm's length, with no promoter or promoter group interest involved in the arrangement.

Financial Impact

The Parent Company Guarantee constitutes a contingent liability for Sterling & Wilson Renewable Energy Limited. This financial commitment reflects the company's confidence in its subsidiary's operational capabilities and project execution in the South African solar energy sector.

Corporate Structure

Sterling and Wilson Engineering (Pty) Ltd., as a step-down subsidiary, operates under the broader Sterling & Wilson group structure. The facility arrangement enables the subsidiary to access necessary working capital for its solar project operations while maintaining the parent company's financial backing through the guarantee mechanism.