Finolex Cables Limited has received a CGST order with a tax demand of ₹15.19 lakhs, as disclosed to the stock exchanges under Regulation 30 of SEBI Listing Regulations. The order was issued by the Superintendent AR – IV, Division – VII, CGST Ahmedabad, Gujarat, dated December 24, 2025, and received by the company on December 30, 2025.

Tax Demand Details

The CGST order confirms the demand under a Show Cause Notice related to Input Tax Credit (ITC) availed by the company during specific financial years. The total demand comprises tax and interest components as detailed below:

Nature of Allegations

The tax authorities have alleged that GST credit taken by the company is not available in GSTR-2A. The Show Cause Notice was issued for ITC availed during the following periods:

• Financial Year 2018-19
• Financial Year 2019-20
• Financial Year 2022-23

The company received the order online through the GSTN portal on December 30, 2025, following the original order date of December 24, 2025.

Company's Position and Next Steps

Finolex Cables has stated that the tax demand of ₹15.19 lakhs will not have a major impact on the company's operations. The company retains the option to file an appeal before the Appellate Authority against this order.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Sub-Para 20 of Para A, Part A of Schedule III of the SEBI Listing Regulations. The company has also complied with the requirements of SEBI Circular SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023, by providing detailed information about the tax order in the annexure to its disclosure.

Finolex Cables Limited has informed stock exchanges about receiving a significant GST demand order from tax authorities in Chandigarh. The company disclosed this development through a regulatory filing under Regulation 30 of SEBI Listing Regulations.

GST Demand Details

The Commercial Tax Officer, Ward-5, Chandigarh issued an order for a GST demand of ₹22.01 crores for the financial year 2021-22. The demand is related to Input Tax Credit (ITC) mismatch and HSN code discrepancies.

Nature of Alleged Violations

The tax demand stems from alleged discrepancies in Input Tax Credit (ITC) claims and other related issues. Specifically, authorities allege that Finolex Cables claimed credit for transactions where suppliers uploaded HSN (Harmonized System of Nomenclature) codes different from those used by the company. This mismatch in HSN codes between the company's records and supplier declarations forms the basis of the tax demand.

Company's Response and Next Steps

Finolex Cables has the option to file an appeal before the Appellate Authority to contest the order. The company has not indicated its immediate course of action regarding the appeal process in the current disclosure.

Impact Assessment

Despite the substantial monetary value of the demand, Finolex Cables has stated that this tax demand is not expected to have a major impact on the company's operations. The company's assessment suggests that its business activities and operational capabilities will continue without significant disruption from this regulatory matter.

Regulatory Compliance

The disclosure was made in compliance with SEBI Listing Regulations, specifically under Regulation 30 and related circulars. This ensures transparency with stakeholders regarding material developments that could potentially affect the company's financial position or operations.