Sarla Performance Fibers Limited, a leading manufacturer of specialized synthetic yarns, has announced the resignation of its Company Secretary and Compliance Officer, Kapil Raj Yadav. The resignation will take effect from the close of business hours on September 4, 2025.

Resignation Details

Mr. Yadav, who holds the membership number A75749, cited personal and professional reasons for his departure. In his resignation letter, he expressed his intention to explore a new career path that aligns with his evolving interests and aspirations. The company has accepted his resignation and confirmed that there are no other material reasons for his departure beyond those stated in his resignation letter.

Impact on Key Managerial Personnel

Following his departure, Mr. Yadav will cease to be a Key Managerial Personnel of Sarla Performance Fibers Limited. The company has not yet announced a successor for the position of Company Secretary and Compliance Officer.

Regulatory Compliance

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Sarla Performance Fibers Limited has made the necessary disclosures to the stock exchanges.

Management's Response

Krishna Jhunjhunwala, the Managing Director of Sarla Performance Fibers Limited, signed the regulatory filing acknowledging Mr. Yadav's resignation. The company expressed its appreciation for Mr. Yadav's contributions during his tenure.

As Sarla Performance Fibers Limited prepares for this transition in its key management, stakeholders will be watching closely for announcements regarding the appointment of a new Company Secretary and Compliance Officer to ensure continued smooth operations and regulatory compliance.

Sarla Performance Fibers , a prominent player in the textile industry, has taken legal action against a substantial GST demand by filing a Special Civil Application in the High Court of Gujarat. The company is contesting an order issued by the Additional Commissioner, Central GST & Central Excise, Surat Commissionerate, which alleges improper availing of tax refunds and credits.

Details of the GST Demand

The GST order in question, numbered SURAT/GST/ABS/30/2025-26 and dated July 31, 2025, raises several allegations against Sarla Performance Fibers:

1. Undue IGST refund of ₹9.45 crore on exports while importing inputs duty-free.
2. Improper claim of refund on unutilized Input Tax Credit (ITC) of ₹11.34 crore on exports without payment of tax.

The total demand raised by the tax authorities includes:

Note: Interest amount not specified in the order

Company's Stance

Sarla Performance Fibers maintains a strong position regarding the allegations. The company has stated that it possesses adequate factual and legal grounds to substantiate its stance. In its disclosure to the stock exchanges, the firm expressed confidence that the entire demand would be set aside, anticipating no impact on its financial position or operations.

Legal Proceedings

The Special Civil Application has been filed against multiple respondents, including:

1. The Union of India, through the Secretary, Ministry of Finance
2. Central Board of Indirect Taxes and Customs, Department of Revenue, Ministry of Finance
3. Commissioner, Central GST & Central Excise, Surat Commissionerate
4. Additional Commissioner, Central GST & Central Excise, Surat Commissionerate

Implications and Outlook

While the GST demand is significant, amounting to ₹41.57 crore plus applicable interest, Sarla Performance Fibers appears confident in its legal position. The company's management, led by Managing Director Krishna Jhunjhunwala, has assured stakeholders of their commitment to maintaining high standards of compliance and corporate governance.

As the legal proceedings unfold, investors and industry observers will be keenly watching the outcome of this case, which could have implications for other companies in the textile sector dealing with similar GST-related issues.

Sarla Performance Fibers continues to operate normally as it awaits the court's decision on this matter. The company has pledged to provide updates on any significant developments in the case as required by SEBI regulations.