Indo Rama Synthetics (India) Limited has received a demand order of ₹1.01 crores from the Maharashtra State Tax Department under the Goods and Service Tax framework. The company disclosed this development under Regulation 30 of SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015, continuing from an earlier disclosure made on June 24, 2025.

GST Demand Details

The demand order was issued by the Office of the Deputy Commissioner of State Tax, Nagpur, under Section 73 of MGST/CGST Act, 2017. The company received the order on December 29, 2025, at 20:04 hours.

Nature of Violation

The demand order has been raised due to discrepancies in Reverse Charge Mechanism (RCM) liability specifically related to freight and carriage expenses. This represents an unreconciled liability that the tax authorities have identified during their assessment of the company's GST compliance for the financial year 2021-22.

Financial and Operational Impact

The company has stated that the financial implication of this demand order remains subject to the outcome of the proceedings. This indicates that Indo Rama Synthetics may contest the demand or seek resolution through appropriate legal channels available under the GST framework.

Regulatory Compliance

The disclosure was made in accordance with SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, ensuring transparency with stakeholders regarding material developments that could impact the company's operations. Company Secretary and Compliance Officer Ashok Yadav signed the disclosure document on December 30, 2025.

The company has requested stakeholders to take note of this development as it navigates the GST proceedings with the Maharashtra tax authorities.

Indo Rama Synthetics (India) Limited has successfully concluded its postal ballot process, with shareholders overwhelmingly approving the material related party transaction worth ₹800 crore with TPT Petrochemicals Public Co. Limited, Thailand, for the financial year 2025-26.

Postal Ballot Results

The voting results, declared on December 18, 2025, showed strong shareholder support for the proposed transaction. CS Jaya Yadav of Jaya Yadav Associates served as the scrutinizer for the postal ballot process.

Transaction Overview

The approved transaction represents a significant increase from the previously approved limit of ₹400 crore. The enhanced approval follows a business novation agreement effective July 1, 2025, where Indorama Petrochem Limited (IRPL) novated its entire business to TPT Petrochemicals.

Voting Process Details

The postal ballot was conducted entirely through remote e-voting, with the voting period running from November 18, 2025, at 9:00 AM to December 17, 2025, at 5:00 PM. The company utilized the services of National Securities Depository Limited (NSDL) for the electronic voting platform.

Business Rationale

Indo Rama Synthetics, which manufactures polyester products, requires PTA as a prime raw material. The company stated that this arrangement is necessary to supplement its PTA requirements, which are not adequately available domestically. As of September 30, 2025, related party transactions with TPT stood at ₹235.09 crore.

Regulatory Compliance

The transaction received proper governance oversight, having been reviewed and recommended by the Audit Committee and approved by the Board of Directors. As per SEBI regulations, shareholder approval was mandatory since the transaction exceeds 10% of the annual consolidated turnover. Notably, pursuant to SEBI (LODR) Regulations, 2015, none of the related parties voted on the resolution.

The overwhelming shareholder approval underscores confidence in the company's strategy to secure stable supply of critical raw materials amidst global supply chain challenges.