Harish Textile Engineers Limited has disclosed that conciliation proceedings initiated by M/s. Deep Industries before the Micro and Small Enterprises Facilitation Council (MSEFC) have been terminated, with the matter now proceeding to arbitration under the MSMED Act, 2006.

Order Details and Timeline

The company received a communication from the MSEFC, District Industries Center – Ahmedabad, on 06th February, 2026, regarding Application bearing D.P. No. 5337 in the matter of M/s. Deep Industries, Ahmedabad vs. Harish Textile Engineers Limited. The council terminated the conciliation proceedings under Section 18(2) of the Micro, Small and Medium Enterprises Development Act, 2006, citing unsuccessful resolution.

Nature of Dispute

The proceedings involve alleged delayed payment to M/s. Deep Industries, which is registered as a Micro and Small Enterprise (MSE) under the MSMED Act. The dispute has now been referred for arbitration proceedings under Section 18(3) of the MSMED Act, 2006, following the unsuccessful conciliation attempt.

Company's Response and Impact Assessment

Harish Textile Engineers Limited is currently examining the contents of the MSEFC communication in consultation with its legal advisors. The company has committed to taking appropriate steps in accordance with applicable laws and within prescribed timelines.

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. This follows the company's earlier intimations dated 19th April, 2024, 10th February, 2025, 12th March, 2025, 12th June, 2025, and 25th July, 2025, related to the same proceedings initiated by Deep Industries.

The company has provided detailed information as required under SEBI regulations, including the nature of alleged violations, timeline of communications, and potential impact assessment. The matter represents a transition from conciliation to formal arbitration proceedings under the MSMED framework for dispute resolution.

Harish Textile Engineers Limited has received a GST scrutiny notice from tax authorities in Maharashtra, requiring the company to address discrepancies identified in its goods and services tax returns for the previous financial year.

Notice Details and Timeline

The company received the notice on January 13, 2026, from the Office of the Deputy Commissioner of State Tax, Ambad_505, Nashik, Maharashtra. The notice was issued under Section 61 of the CGST/SGST Act, 2017, in Form GST ASMT-10, specifically targeting the company's GSTR-3B returns for Financial Year 2023-24, covering the period from April 2023 to March 2024.

Financial Implications

The scrutiny has identified provisional discrepancies in the company's GST returns amounting to approximately ₹26.72 lakh. However, this amount is subject to reconciliation and explanation by the company. The notice seeks clarification regarding certain discrepancies observed during the examination of the returns, with detailed information provided in the annexure to the notice.

Company Response Strategy

Harish Textile Engineers Limited has acknowledged receipt of the notice and is taking appropriate steps to address the matter. The company is currently examining the notice in detail and plans to submit its response within the prescribed timeline of February 13, 2026. The response will be prepared based on advice from the company's tax consultants.

The company has emphasized that at this stage, the notice is only seeking explanations and clarifications, and there is no quantifiable financial impact determined as of now. The management has assured that they will comply with all regulatory requirements and submit their reply within the stipulated timeframe.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, along with SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023. The company has fulfilled its obligation to inform stakeholders about material developments that could impact its operations.

The notice represents a routine regulatory scrutiny process, and the company has indicated that it will work with tax authorities to resolve any discrepancies identified during the examination of its GST returns for the specified period.