Refex Industries has announced a significant milestone for its subsidiary, Venwind Refex Power Limited (VRPL). The Ministry of New and Renewable Energy (MNRE) has included VRPL in its Approved List of Models and Manufacturers (ALMM) for wind turbines, marking a notable advancement in the company's renewable energy manufacturing capabilities.

Key Highlights

• Approval Status: VRPL has been listed in the Revised List of Models Manufacturers (RLMM), now renamed as ALMM (Wind), by the MNRE.
• Manufacturing Facility: The company operates a state-of-the-art facility in Silvassa, Gujarat.
• Product Specifications: VRPL produces India's largest grid-friendly wind turbine, the advanced GWH 182-5.3MW platform, featuring a 183.5-metre rotor diameter and a high-efficiency 5.3MW drivetrain.

Significance of MNRE Approval

The inclusion in the ALMM (Wind) list is crucial for wind turbine manufacturers in India. It signifies that VRPL's wind turbine models meet the quality and performance standards set by the MNRE, making them eligible for installation in various projects across the country.

Financial Implications

While the direct financial impact of this approval is not immediately quantifiable, it positions Refex Industries and its subsidiary VRPL for potential growth in the wind energy sector. The company's consolidated balance sheet shows significant growth in assets and equity over the past few years, indicating a strong financial foundation to support this new venture.

All figures in ₹ crore

The substantial increase in fixed assets over the past five years (from ₹21.90 crore to ₹345.40 crore) suggests significant investments in manufacturing capabilities, which aligns with the company's focus on wind turbine production.

Market Implications

This approval strengthens Refex Industries' position in India's renewable energy landscape. As the country pushes for greater adoption of clean energy, VRPL's approved status could lead to increased orders and market share in the wind energy sector.

Conclusion

The MNRE approval for Venwind Refex Power Limited represents a strategic advancement for Refex Industries in the renewable energy market. It aligns with India's push towards sustainable energy solutions and positions the company to capitalize on the growing demand for wind energy infrastructure. Investors and industry observers will likely watch closely to see how this approval translates into business growth and financial performance in the coming quarters.

Refex Industries Limited , a prominent player in the industrial sector, has recently come under scrutiny from tax authorities. The company has received a significant demand order from the CGST Raipur Commissionerate, alleging irregularities in Input Tax Credit (ITC) claims.

Key Details of the CGST Demand Order

Company's Response

Refex Industries has taken a firm stance on the matter:

1. Maintainability: The company believes that the demand is not maintainable.
2. Appeal Process: Refex Industries is in the process of filing an appeal against the order.
3. Financial Impact: The company has stated that the order has no material impact on its financials or operations.

Order Breakdown

The demand order includes both tax and penalty components:

Implications and Next Steps

While Refex Industries maintains that the order will not significantly affect its financial position or operational activities, the company is taking the matter seriously. The management's decision to appeal against the order suggests confidence in their tax compliance practices.

Investors and stakeholders should note that such regulatory challenges are not uncommon in the industrial sector. The company's proactive approach in addressing the issue and its transparency in disclosing the details to the stock exchanges demonstrate a commitment to good corporate governance.

As the appeal process unfolds, market participants will likely keep a close eye on any developments that could impact Refex Industries' financial standing or regulatory compliance status.

Conclusion

This CGST demand order against Refex Industries highlights the ongoing scrutiny of Input Tax Credit claims by tax authorities. While the company remains confident in its position, the outcome of the appeal will be crucial in determining the final financial implications, if any, for Refex Industries Limited.