Indag Rubber Limited , a prominent player in the rubber industry, has recently come under regulatory scrutiny. The company disclosed that it has received a Show Cause Notice (SCN) from the Joint Commissioner of State Tax, Bhiwadi, Rajasthan, under Section 73 of the GST Act, 2017 for the financial year 2021-22.

Details of the Notice

The Show Cause Notice proposes a total demand of Rs. 1.07 crore, which breaks down as follows:

Alleged Violations

The notice pertains to two main issues:

1. Excess claim of Input Tax Credit (ITC)
2. Claiming and utilizing blocked ITC under Section 17(5) of the GST Act

These alleged violations cover the period from April 2021 to March 2022.

Company's Response

Indag Rubber Limited has stated that it will file an appropriate response to the Show Cause Notice within the prescribed timelines. The company has expressed confidence that this notice will not have any major impact on its financial, operational, or other activities.

Regulatory Compliance

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Indag Rubber Limited promptly disclosed this information to the BSE Limited on September 25, 2023.

About Indag Rubber Limited

Indag Rubber Limited, with its registered office in New Delhi, is known for its operations in the rubber industry. The company's manufacturing facility is located in Village Jhiriwala, Tehsil, Nalagarh, District Solan, Himachal Pradesh. Indag Rubber prides itself on maintaining ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018 certifications, underscoring its commitment to quality, environmental management, and occupational health and safety standards.

As the situation develops, stakeholders will be keenly watching how Indag Rubber Limited addresses these regulatory concerns and manages any potential financial implications.

Indag Rubber Limited , a leading tread manufacturing company in India, has released its unaudited financial results for the first quarter, revealing a 17% year-on-year decline in revenue amid challenging market conditions.

Financial Performance

The company reported total revenue of ₹48.00 crore for Q1, down from ₹58.00 crore in the same quarter of the previous fiscal year. Despite the revenue decline, Indag Rubber managed to improve its EBITDA margin to 8.2% from 7.1% in the comparable quarter, attributed to a better product mix and tighter cost controls.

Factors Affecting Performance

The revenue decline was primarily attributed to reduced volumes in the State Transport Undertakings (STU) business, which operates on a discrete order basis. Additionally, the aftermarket segment experienced softer demand conditions, contributing to the overall decrease in revenue.

Management Commentary

Vijay Shrinivas, CEO of Indag Rubber Limited, commented on the results, stating, "Despite near-term challenges, we remain firmly focused on executing our long-term growth strategy." He highlighted several factors supporting the company's optimistic outlook:

1. Expanding Retreadable Tyre Base: Improvements in road infrastructure and steady commercial vehicle growth are increasing the pool of tyres suitable for retreading.

2. Industry Formalization: Regulatory reforms such as GST compliance, e-way bills, and anti-overloading norms are strengthening the position of organized players in the sector.

3. Sustainability Alignment: Policies promoting Extended Producer Responsibility (EPR) and the circular economy are driving greater adoption of retreading, aligning with government initiatives and evolving customer preferences.

Strategic Focus

Indag Rubber is maintaining its focus on long-term growth strategies, including:

• Engaging fleets through data-driven education on retreading benefits
• Expanding the retreader network reach
• Enhancing brand visibility through focused campaigns
• Driving product leadership via sophisticated R&D
• Advancing operational excellence through digitalization

Looking Ahead

Despite the current challenges, Indag Rubber remains confident in its ability to capitalize on favorable industry trends, cost-efficient solutions, and a sustainability-driven policy environment. The company believes it is well-positioned to deliver consistent, long-term value creation for all stakeholders.

As the tyre retreading industry continues to evolve, Indag Rubber's commitment to innovation and sustainability may play a crucial role in navigating the changing market landscape and driving future growth.