United Heat Transfer received a Show Cause Notice from the State Tax Officer, Department of Goods and Services Tax, Government of Maharashtra, proposing the blocking of Input Tax Credit (ITC) amounting to ₹9,38,860 for FY 2024-25. The notice, dated July 13, 2026, was received via email on July 17, 2026, at around 9:50 a.m. The authority has alleged that the company wrongly availed inadmissible ITC from suppliers stated to be non-existent.

The notice was issued under Rule 86A of the CGST/MGST Rules, 2017. The company stated that the ITC pertains to FY 2024-25 and has been considered inadmissible by the GST Authority. United Heat Transfer disclosed that it is currently evaluating the matter and intends to file an appropriate response before the concerned authority.

The company confirmed that there is no immediate impact on its finances, operations, or other activities as a result of the notice. The disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Details of the Show Cause Notice

United Heat Transfer has executed an additional legal mortgage with Saraswat Co-operative Bank to secure a working capital term loan facility of ₹2.47 crore under the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0. The loan, intended to bolster liquidity, carries an interest rate of 9.00% per annum and is repayable over 60 months, including a 12-month moratorium period. The facility was sanctioned on June 11, 2026, and the mortgage was registered on July 3, 2026.

The company has pledged its land and building situated at Gat No. 352/B/1-4 in Talegaon, Taluka Dindori, District Nashik, as additional security via a second charge. This mortgage covers an industrial non-agricultural plot admeasuring approximately 43,300 sq. mtrs, including a factory building of 5,660.16 sq. mtrs and proposed construction. The security extends to adjacent land parcels designated for road access and open space.

Loan Details and Security

The working capital facility is secured by both movable and immovable assets. While the current assets, including stock and book debts, are hypothecated, the land and building provide the secondary collateral. The company disclosed that it currently holds 2,500 shares in Saraswat Co-operative Bank and is subscribing for an additional 500,000 equity shares to meet the bank's share capital linkage requirements.

Regulatory Disclosures

The transaction is not a related party transaction, as confirmed in the filing submitted to the National Stock Exchange of India. The company informed the exchange that the share subscription in the lender bank is compliant with the RBI Master Circular on Prudential Norms on Capital Adequacy for Primary (Urban) Co-operative Banks dated April 1, 2025. The total outstanding amount towards the working capital term loan stands at ₹2.47 crore.