Grindwell Norton Limited has received a significant favorable order from GST authorities, completely dropping a demand of ₹12.98 crores to nil for Input Tax Credit mismatch during the period 2021-22. The company disclosed this major development under Regulation 30 of the SEBI Listing Regulations on December 26, 2025.

GST Demand Resolution Details

The favorable order was received on December 25, 2025, following the company's submissions and representations to the GST Authority. This resolution pertains to one of the Show Cause Notices that was part of a larger GST demand aggregating to ₹36.55 crores, which the company had initially disclosed on September 30, 2025.

Outstanding GST Matters

While this represents a significant positive development, the company still has another Show Cause Notice pending adjudication. The remaining matter involves material movements for job-work transactions amounting to ₹23.57 crores, which is currently under review by the authorities.

Financial and Operational Impact

According to the regulatory disclosure, the favorable order has no material impact on the financial, operational, or other activities of the company. The resolution eliminates a substantial potential liability and validates the company's Input Tax Credit claims for the period 2021-22, demonstrating the legitimacy of its tax compliance practices.

Regulatory Compliance

The company has maintained its position that there are no violations or contraventions committed in this matter. The successful resolution of this significant GST demand showcases Grindwell Norton's robust compliance framework and its ability to effectively represent its case before tax authorities. The company continues to work on resolving the remaining pending matter through appropriate legal channels.

Grindwell Norton Limited's Board of Directors convened on December 12, 2025, addressing key strategic and organizational matters. The meeting, which commenced at 5:35 PM IST and concluded at 6:30 PM IST, resulted in two significant decisions impacting the company's sustainability initiatives and management structure.

Enhanced Investment in Green Energy Initiative

The Board approved a substantial enhancement in the company's investment commitment to Jamnagar Renewables Two Private Limited (JRTPL). The investment quantum has been increased from ₹2.77 crores (sanctioned on May 9, 2025) to an amount not exceeding ₹86.00 lakhs.

This enhancement stems from an increase in the planned capacity of the power producer. The investment aligns with Grindwell Norton's sustainability and operational efficiency objectives, demonstrating the company's commitment to renewable energy adoption. The capital contribution represents the company's proportionate shareholding in JRTPL, in accordance with the Electricity Act and applicable rules.

Key Management Transition

The Board accepted the resignation of Mr. Krishnaswamy Visweswaran from his multiple roles within the organization. His departure encompasses three critical positions that he currently holds.

Mr. Visweswaran submitted his resignation letter on December 12, 2025, citing internal reorganization as the primary reason for his departure. He confirmed that no other material reasons contributed to his resignation decision. His tenure concludes at the close of business hours on February 6, 2026.

Strategic Agreement Terms

The investment in JRTPL involves specific operational and governance arrangements. The Board of JRTPL will be responsible for performing all necessary acts and ensuring compliance with the Companies Act and related rules. Notably, no potential conflict of interest arises from this agreement, and no nominee has been appointed to JRTPL's board.

The parties involved in the agreement are not related to Grindwell Norton's Promoter, Promoter Group, or Group Companies, ensuring the transaction remains at arm's length. The agreement does not fall within the scope of related party transactions.

Regulatory Compliance

Both decisions comply with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has fulfilled all disclosure requirements, including the provision of detailed annexures covering investment terms and resignation particulars. This information will also be made available on the company's official website at www.grindwellnorton.co.in .