Vishal Fabrics Limited has officially communicated to BSE Limited that it does not meet the criteria for Large Corporate classification under SEBI regulations. The company submitted this confirmation on April 09, 2026, addressing the applicability of specific SEBI circulars related to disclosure requirements.

SEBI Large Corporate Framework

The SEBI circulars SEBI/HO/DDHS/CIR/P/2018/144 dated November 26, 2018, and SEBI/HO/DDHS/DDHSP0D1/P/CIR/2023/172 dated October 19, 2023, establish specific criteria for Large Corporate classification. Companies must meet all three conditions to fall under this framework.

Borrowing Classification Details

The SEBI framework specifically defines outstanding long-term borrowings as any borrowing with original maturity exceeding one year. However, several categories are excluded from this calculation:

• External commercial borrowings
• Inter-corporate borrowings involving holding, subsidiary, or associate companies
• Government grants, deposits, or funds received under official guidelines
• Borrowings from interest capitalization
• Borrowings for merger, acquisition, and takeover schemes

Credit Rating Requirements

For companies with multiple ratings from different agencies, the highest rating is considered for framework applicability. The credit rating must specifically relate to unsupported bank borrowings or plain vanilla bonds without any structural support or enhancement features.

Company's Confirmation

Vishal Fabrics Limited has confirmed that it does not fall under the Large Corporate category as defined by the SEBI circulars. Consequently, the company is exempt from filing initial disclosure and annual disclosure requirements as specified in Annexures A, B1, and B2 of the mentioned circulars.

The communication was signed by Company Secretary Dilip Nikhare (Membership No. A45570) and Chief Financial Officer Dharmesh Dattani, confirming the company's regulatory compliance status under the specified SEBI framework.

Vishal Fabrics Limited has received a rectification order from tax authorities that reduces the penalty amount imposed on the company for GST-related violations. The textile manufacturer informed the stock exchange about this development on March 31, 2026, providing an update to its earlier intimation from December 31, 2025.

Penalty Revision Details

The Commissioner of Central GST & Central Excise, Ahmedabad – North, issued a rectification order under section 161 of CGST Act, 2017, modifying the penalty amount imposed on the company.

Nature of Violation

The rectification order addresses excess or incorrect Input Tax Credit claimed by the company under applicable GST provisions. The penalty relates to recovery of interest and penalty for the respective period when these claims were made. The company had initially received the order imposing penalty under various sections of the CGST, Gujarat GST, IGST, and GST Compensation to States Acts.

Financial Impact Assessment

According to the company's disclosure, management believes no material financial impact will result from this order. This assessment is based on:

• Company's internal evaluation
• Prevailing legal framework
• Advice from legal counsel

The company has fulfilled its disclosure obligations under Regulation 30 of SEBI Listing Regulations, providing detailed information as required under Schedule III and relevant SEBI circulars. The rectification represents a reduction of approximately Rs. 2.91 crore from the original penalty amount, though the company maintains its position regarding the overall financial impact.