Grindwell Norton has received significant relief from tax authorities following an official communication regarding GST proceedings against the company.

GST Authority Decision

The Goods and Service Tax Authority has issued a demand drop intimation to the company, effectively dropping proceedings against a demand that was raised under section 73. The company received the order from the Office of the Deputy Commissioner of State Tax on December 31, 2025.

Demand Reduction Details

The GST proceedings have resulted in a substantial reduction of the original demand amount. The following table shows the impact of the authority's decision:

This reduction follows the company's reply filed against the Show Cause Notice, demonstrating the effectiveness of their response to the tax authority's concerns.

Company's Position and Next Steps

Grindwell Norton maintains that the reduced demand of ₹4.17 crores is not maintainable based on their assessment. The company has indicated its intention to prefer a further appeal against this remaining demand amount.

The management has clarified that there is no material impact expected on the company's financial, operational, or other business activities as a result of these proceedings.

Regulatory Compliance

The disclosure has been made under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, ensuring transparency with stakeholders. This development represents a favorable outcome for the abrasives and industrial products manufacturer, significantly reducing the potential financial exposure from the original GST demand.

Grindwell Norton Limited's Board of Directors convened on December 12, 2025, addressing key strategic and organizational matters. The meeting, which commenced at 5:35 PM IST and concluded at 6:30 PM IST, resulted in two significant decisions impacting the company's sustainability initiatives and management structure.

Enhanced Investment in Green Energy Initiative

The Board approved a substantial enhancement in the company's investment commitment to Jamnagar Renewables Two Private Limited (JRTPL). The investment quantum has been increased from ₹2.77 crores (sanctioned on May 9, 2025) to an amount not exceeding ₹86.00 lakhs.

This enhancement stems from an increase in the planned capacity of the power producer. The investment aligns with Grindwell Norton's sustainability and operational efficiency objectives, demonstrating the company's commitment to renewable energy adoption. The capital contribution represents the company's proportionate shareholding in JRTPL, in accordance with the Electricity Act and applicable rules.

Key Management Transition

The Board accepted the resignation of Mr. Krishnaswamy Visweswaran from his multiple roles within the organization. His departure encompasses three critical positions that he currently holds.

Mr. Visweswaran submitted his resignation letter on December 12, 2025, citing internal reorganization as the primary reason for his departure. He confirmed that no other material reasons contributed to his resignation decision. His tenure concludes at the close of business hours on February 6, 2026.

Strategic Agreement Terms

The investment in JRTPL involves specific operational and governance arrangements. The Board of JRTPL will be responsible for performing all necessary acts and ensuring compliance with the Companies Act and related rules. Notably, no potential conflict of interest arises from this agreement, and no nominee has been appointed to JRTPL's board.

The parties involved in the agreement are not related to Grindwell Norton's Promoter, Promoter Group, or Group Companies, ensuring the transaction remains at arm's length. The agreement does not fall within the scope of related party transactions.

Regulatory Compliance

Both decisions comply with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has fulfilled all disclosure requirements, including the provision of detailed annexures covering investment terms and resignation particulars. This information will also be made available on the company's official website at www.grindwellnorton.co.in .