VMS Industries Limited has received a significant GST order from tax authorities, with implications for its financial position and operations.

GST Order Details

The company received Order-in-Original No. BHV-GST-000-JC-CK-352-2025-26-1417 dated 31-03-2026 from the Joint Commissioner, Central Goods & Services Tax, Bhavnagar. The order was received on 07-04-2026 at 08:01 pm and relates to Show Cause Notice No. CGST-BVR/AE/261/2025-26 dated 02.08.2025.

Financial Impact Assessment

The GST order presents substantial financial implications for VMS Industries Limited:

The total demand of ₹2294.40 lakhs represents approximately 7.95% of the company's turnover for FY 2024-25, indicating a material impact on the organization's financial position.

Company's Response Strategy

VMS Industries Limited has outlined its approach to addressing the GST order:

• The company is currently evaluating the Order-in-Original in detail
• Plans to file an appeal before the appropriate appellate authority within the prescribed timeline
• Management believes it has adequate provisions and grounds to contest the demand successfully
• The company maintains there is no material impact on its day-to-day operations

Regulatory Context

The GST order covers the period of F.Y 2024-25 and involves both demand and penalty components. The nature of the order indicates it was passed pursuant to adjudication of the show cause notice issued earlier by the tax authorities.

The company has disclosed this information in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency with stakeholders and the investing public.

Operational Continuity

Despite the significant financial demand, VMS Industries Limited has emphasized that the GST order does not materially impact its operational activities. The company continues its business operations while pursuing the legal remedies available under the GST framework.

The management's confidence in successfully contesting the demand suggests they believe the order may be based on interpretational differences or procedural issues that can be addressed through the appellate process.

VMS Industries Limited, a company engaged in green ship recycling, announced its unaudited standalone financial results for the third quarter and nine months ended December 31, 2025. The Board of Directors approved these results during their meeting held on February 13, 2026.

Financial Performance Overview

The company's financial performance for Q3FY26 showed a decline compared to the corresponding quarter of the previous year. Revenue from operations decreased significantly, while profitability also faced pressure during the reporting period.

Nine-Month Performance Analysis

The nine-month performance also reflected challenging business conditions, with significant declines across key financial parameters compared to the previous year.

Expense Structure and Profitability

The company's expense management during Q3FY26 showed mixed results. Total expenses for the quarter amounted to ₹2,664.57 lakhs compared to ₹3,385.04 lakhs in Q3FY25. Key expense components included:

• Cost of Materials Consumed: ₹161.05 lakhs (Q3FY26) vs ₹858.29 lakhs (Q3FY25)
• Purchase of Stock in Trade: ₹2,056.19 lakhs vs ₹3,813.66 lakhs
• Employee Benefits Expenses: ₹57.32 lakhs vs ₹105.81 lakhs
• Finance Costs: ₹145.67 lakhs vs negative ₹4.54 lakhs

Balance Sheet Position

The company maintained a stable capital structure with paid-up equity share capital remaining constant at ₹2,447.34 lakhs. Reserves and other equity stood at ₹7,252.20 lakhs as of December 31, 2025, compared to ₹6,749.97 lakhs in the corresponding period of the previous year.

Regulatory Compliance and Governance

The financial results were reviewed by the Audit Committee and approved by the Board of Directors. The company received no complaints from shareholders during the quarter ended December 31, 2025. The results have been prepared in accordance with Indian Accounting Standards (Ind AS) and comply with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. M/s. S N Shah & Associates, Chartered Accountants, issued the Limited Review Report for these unaudited financial results.