Refex Industries Limited has received a demand order from tax authorities totaling ₹35.29 lakh for the financial year 2021-22. The company disclosed this development to stock exchanges on December 16, 2025, pursuant to regulatory requirements under SEBI listing obligations.

CGST Demand Order Details

The Assistant Commissioner, CGST Central Excise, Raipur issued the demand order on December 15, 2025, under Section 73 of the CGST Act, 2017. The order imposes both tax and penalty components for alleged violations during FY2021-22.

Nature of Alleged Violation

The demand order alleges short payment of Reverse Charge Mechanism (RCM) liability based on figures reflected in the auto-populated GSTR-2A. The tax authorities have identified discrepancies in the company's GST compliance for the specified financial year.

According to the company's assessment, the alleged RCM liability has arisen due to erroneous filing of GST returns by one of its suppliers. The transaction in question pertains to an exempt supply, for which no tax is payable under RCM, and consequently, the supplier was not required to report the same in GST returns.

Company's Response and Impact Assessment

Refex Industries believes the demands are not maintainable and has indicated its intention to prefer an appeal against the order within the prescribed time period. The company's management has assessed that the demanded amount, along with interest and penalty, will not have any material impact on the company's financials.

The management further stated that the demand order will not affect the company's operational activities or other business functions.

Regulatory Compliance

The company has fulfilled its disclosure obligations under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The notification was sent to both BSE Limited and National Stock Exchange of India Limited, ensuring transparency with stakeholders regarding this regulatory development.

Refex Industries operates from its registered office in Chennai, Tamil Nadu, and maintains manufacturing facilities in the same state. The company continues its business operations while addressing this tax-related matter through appropriate legal channels.

Refex Industries Limited has announced that it received an Environmental, Social, and Governance (ESG) rating of 70 for FY2025 from NSE Sustainability Ratings & Analytics Limited, representing an improvement from the previous year's score of 69. The company disclosed this development through a regulatory filing on December 15, 2025, under SEBI Listing Regulations.

ESG Rating Performance

The diversified enterprise, headquartered in Chennai and operating in eco-friendly refrigerant gases, coal and ash management, achieved scores across three key pillars:

Refex Industries also received a Core ESG Rating of 58 for FY2025, comprising an environment score of 52, social score of 67, and governance score of 57. This core rating focuses on third-party assured or audited data derived from BRSR Core disclosures.

Environmental Performance Analysis

The Environment pillar score of 61 reflects mixed performance across sustainability metrics. Key highlights include:

Positive Indicators:

• Scope 3 emissions lower than standard practices
• Water intensity performance improved with 13% decrease compared to previous year
• Waste intensity well-managed with significant 64% decrease year-over-year

Areas for Improvement:

• Greenhouse gas emissions from direct operations increased by 34% compared to previous year
• Energy intensity aligned with benchmarks but increased by 29% year-over-year
• Company lags behind in renewable energy adoption
• Waste recycling and recovery decreased by 55% compared to previous year

Social and Governance Strengths

The Social pillar achieved the highest score of 77, driven by strong workplace safety and employee welfare measures:

The Governance pillar scored 73, reflecting robust board composition and committee structures:

• Strong presence of independent directors exceeding minimum regulatory requirements
• Compliance with women directors requirement on board
• Independent director representation in key committees above statutory guidelines
• Risk Management Committee composition meets regulatory thresholds

Rating Methodology and Assessment

NSE Sustainability, a SEBI-registered ESG Rating Provider under Category I, conducted this assessment independently without company engagement. The evaluation utilized publicly available data from annual reports, ESG reports, BRSR reports, company website, news, and stock exchange filings.

The rating agency assessed 500 listed companies in India as part of its mandate to promote transparency and consistency in ESG assessments. The evaluation incorporates transition factors and material events related to ESG practices, using sector-specific parameters and peer benchmarking.

Company Background

Refex Industries operates within the commodities macro-economic sector with strategic interests in sustainable technologies. The company is recognized for its sustainability-driven approach and innovative solutions across critical infrastructure and environmental domains, playing a vital role in India's transition toward greener technologies and responsible industrial practices.