VMS Industries Limited has announced that its board of directors will meet on Thursday, May 28, 2026. The primary agenda for the meeting is to consider and approve the audited financial results for the quarter and financial year ended March 31, 2026.

Agenda for the Meeting

The board will deliberate on the standalone audited financial results of the company for the fourth quarter of the fiscal year 2026. Additionally, the directors will review the Auditor's Report concerning these audited financial results. The meeting may also discuss any other business that may come before the board.

Trading Window Closure

In compliance with the SEBI (Prohibition of Insider Trading) Regulations, 2015, the company has informed that the trading window for dealing in the securities of VMS Industries Limited remains closed. This restriction applies to all designated persons and their immediate relatives. The window will stay shut until 48 hours after the declaration of the audited financial results for the quarter and financial year ended March 31, 2026.

Meeting Details

The company has requested the stock exchanges to take the above information on record.

VMS Industries Limited has received a substantial GST Order-in-Original from the Joint Commissioner, Central Goods & Services Tax, Bhavnagar, involving a total demand and penalty of ₹1988.18 lakhs. The company disclosed this significant development under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Order Details and Financial Impact

The GST order, bearing number BHV-GST-000-JC-CK-351-2025-26-CENTRAL-1416 and dated March 31, 2026, was received by the company on April 28, 2026, at 7:30 PM. The order stems from adjudication of Show Cause Notice CGST-BVR/AE/267/2025-26 dated August 12, 2025, covering the financial year 2024-25.

The demand represents approximately 6.89% of the company's turnover/net worth for FY 2024-25, indicating a significant financial implication for the organization.

Background and Context

VMS Industries initially received an order dated March 31, 2026, issued erroneously in the name of another entity due to a GST Department error but delivered to their address. The company immediately applied for rectification through appropriate forms. Subsequently, they received the correct order on April 28, 2026.

The order relates to investigations involving alleged circular trading and bogus invoicing without actual supply of goods. The GST authorities identified suspicious transaction patterns involving machinery parts (HSN: 84879000) among multiple entities, where goods appeared to move only on paper with values increasing approximately seven times without genuine value addition.

Investigation Findings

The adjudication order reveals extensive investigations conducted by the Anti-Evasion Wing, including:

• Physical inspections at various premises showing absence of declared goods
• Statement recordings from drivers, transporters, and company representatives
• Analysis of e-way bills and GST returns revealing discrepancies
• Identification of circular trading patterns among related entities

The authorities alleged that VMS Industries availed and utilized fraudulent Input Tax Credit (ITC) without actual receipt of goods, violating Section 16(2)(b) of the CGST Act, 2017.

Company's Response and Defense

VMS Industries has maintained that the transactions were genuine commercial activities conducted in the ordinary course of business. The company provided comprehensive documentation including:

• Tax invoices, lorry receipts, and insurance documents
• E-way bills and weighbridge slips
• Bank statements evidencing payments through proper banking channels
• Distributorship agreements supporting bill-to-ship-to transactions

The company argued that their business model involved legitimate trading arrangements where goods were directly shipped to end customers as per commercial instructions, supported by proper documentation and payment trails.

Regulatory Compliance and Next Steps

VMS Industries emphasized its commitment to regulatory compliance, stating it has been regularly paying taxes and filing returns in accordance with law since GST inception. The company has adequate provisions and grounds to contest the demand successfully and expects no material impact on operations.

The company plans to file an appeal before the Commissioner (Appeals), Central Goods and Service Tax, GST Bhavan, Race Course Ring Road, Rajkot, within the prescribed 90-day timeline as per Section 107(1) of the CGST Act, 2017.

Financial and Operational Outlook

Despite the significant demand, VMS Industries maintains confidence in its position, stating adequate provisions exist to contest the demand successfully. The company asserted that there would be no material impact on its operations, indicating management's confidence in the appeal process outcome.

The disclosure under Regulation 30 demonstrates the company's commitment to transparency and regulatory compliance, ensuring stakeholders remain informed of material developments that could impact the organization's financial position.