Sudarshan Chemical Industries Limited has received a GST demand order from Tamil Nadu tax authorities totaling ₹59.42 lakh for the financial year 2021-22. The company disclosed this development on December 31, 2025, in compliance with SEBI listing regulations.

GST Order Details

The Deputy Commissioner of State Tax, Valasaravakkam, Chennai-South, Tamil Nadu, issued the GST DRC-07 order dated December 31, 2025. The demand covers the audit period from April 1, 2021, to March 31, 2022.

Audit Process and Company Response

The tax demand emerged following completion of audit by Tamil Nadu tax authorities for FY22. The process involved multiple stages:

• Tax authorities completed audit for the specified period
• Office of Deputy Commissioner issued initial notice in Form DRC 01
• Company submitted detailed response to the notice
• After verification of company's response, authorities issued final order in Form DRC 07

Company's Position and Next Steps

Sudarshan Chemical Industries maintains confidence in its position regarding the tax demand. The company stated it "believes that it has a good case on all the points raised by the Office of Deputy Commissioner, State Tax, Tamil Nadu."

The company plans to challenge the order through proper legal channels. As the order is appealable, Sudarshan Chemical is currently preparing to file an appeal before the appropriate authority.

Expected Impact Assessment

Regarding potential business implications, the company expressed optimism about the outcome. Management believes there will be no material impact on the company's financial position, operations, or other business activities due to this GST order.

The disclosure was made pursuant to Regulation 30 of SEBI Listing Regulations, 2015, ensuring transparency with stakeholders about regulatory developments affecting the company.

Sudarshan Chemical Industries Limited has completed the liquidation of its step-down wholly owned subsidiary, Heubach Colorants Scandinavia AB, domiciled in Sweden. The liquidation became effective on December 29, 2025, as disclosed to the stock exchanges under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Financial Impact and Subsidiary Details

The liquidated entity had minimal financial contribution to the parent company's operations. According to the regulatory filing, Heubach Colorants Scandinavia AB recorded zero turnover for FY 2024-25, representing 0% contribution to the group's revenue.

Background and Timeline

The Swedish subsidiary was already under voluntary liquidation process when Sudarshan Europe B.V., a wholly owned subsidiary of Sudarshan Chemical Industries, completed the acquisition of Heubach Group's Global Pigment Business Operations on March 3, 2025. This acquisition was executed along with Persons Acting in Concert (PACs).

Liquidation Process Details

As disclosed in the regulatory filing, the liquidation process involved several key aspects:

Corporate Structure Impact

The completion of this liquidation simplifies Sudarshan Chemical Industries' corporate structure by removing a non-operational entity from its subsidiary portfolio. The Swedish entity's minimal financial footprint ensures that its liquidation will have negligible impact on the parent company's consolidated financial statements.

Regulatory Disclosure

The company has fulfilled its disclosure obligations under SEBI regulations by providing comprehensive details about the liquidation process, financial impact, and timeline. The disclosure confirms that all regulatory requirements have been met in connection with the subsidiary's liquidation.