Valiant Laboratories Limited, a pharmaceutical company, has received a show-cause notice from the Assistant Commissioner of CGST & Central Excise, Division-IV, Navi Mumbai Commissionerate, regarding alleged irregularities in Input Tax Credit (ITC) claims.

Details of the Show-Cause Notice

The notice pertains to the alleged wrong availment of Input Tax Credit on capital goods during the tax period from April 2021 to March 2022. The GST authorities have proposed a disallowance of ITC amounting to ₹64.37 lakh, along with a penalty, bringing the total liability to approximately ₹70.81 lakh.

Regulatory Compliance

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Valiant Laboratories has promptly disclosed this development to the stock exchanges. The company made this intimation, demonstrating its commitment to transparent communication with stakeholders.

Company's Response

Valiant Laboratories has stated that it is currently evaluating the show-cause notice and considering appropriate representations to address the matter. The company's management is likely to present its case to the tax authorities, potentially contesting the alleged wrong availment of ITC.

Potential Impact

While the financial implication of ₹70.81 lakh is significant, it's important to note that this is a proposed disallowance and penalty at this stage. The final outcome will depend on the company's response and the subsequent decision by the tax authorities.

Investor Considerations

Shareholders and potential investors should keep a close eye on further developments regarding this tax issue. The resolution of this matter could have implications for the company's financial statements and cash flows, depending on the final outcome of the proceedings.

Valiant Laboratories Limited is listed on both the BSE and the NSE. As the situation unfolds, the company is expected to provide updates to the stock exchanges and its stakeholders in accordance with regulatory requirements.

Valiant Laboratories held its 4th Annual General Meeting (AGM) on September 25, 2025, where shareholders approved significant management changes and a new auditor appointment. The company, known for its presence in the chemical and pharmaceutical industry, made these decisions to strengthen its leadership and compliance structure.

Management Reappointments and Changes

The AGM saw the reappointment of Mr. Santosh Vora as the Managing Director. Mr. Vora, who holds a bachelor's degree in commerce with a specialization in Financial Markets from the University of Mumbai, brings over 8 years of experience in the chemical and pharmaceutical industry to his role. He is responsible for overseeing the company's overall management, focusing on growth initiatives, new product development, and process optimization.

In a notable change, Mr. Paresh Shah's designation was altered from Executive Director & Chief Financial Officer to Whole-Time Director & Chief Financial Officer. Mr. Shah, a Chemical Engineer with a master's degree from Washington State University, boasts over 35 years of industry experience. His responsibilities include overseeing factory operations, legal matters, and financial activities such as budgeting, forecasting, and working capital management.

Auditor Appointment

The shareholders approved the appointment of M/s. Mehta & Mehta, Practicing Company Secretaries, as the Secretarial Auditors for a term of five consecutive years, starting from FY 2025-26 to FY 2029-30. Mehta & Mehta is a reputed corporate legal and secretarial advisory firm with over 25 years of experience, known for its expertise in SEBI and company law compliance, due diligence, and corporate restructuring.

Corporate Governance and Compliance

Both Mr. Santosh Vora and Mr. Paresh Shah confirmed that they are not debarred from accessing capital markets or restrained from holding director positions by SEBI or any other authority. This confirmation aligns with the regulatory requirements set by BSE and NSE circulars.

Company Performance and Strategy

During the AGM, Mr. Santosh Vora presented an overview of the company's performance for FY 2024-25. He acknowledged challenging market conditions, including overcapacity and pricing pressures in the paracetamol API segment, which impacted revenue and EBITDA. However, he outlined strategic responses, including:

1. Capacity expansion at the Tarapur facility
2. Strengthening of the supply chain
3. Enhanced sustainability practices
4. Progress on a greenfield project under the wholly-owned subsidiary, Valiant Advanced Sciences Pvt. Ltd.
5. Successful development and customer approval of over a dozen specialty chemicals through a new pilot plant

Diversification and Future Outlook

The company's efforts in developing specialty chemicals mark a significant step towards diversification beyond paracetamol. This strategic move is aimed at broadening the company's product portfolio and reducing dependence on a single product line.

Mr. Vora expressed confidence in Valiant's future, emphasizing the company's commitment to growth and innovation. He also highlighted the company's continued efforts in community engagement, including support for animal welfare and education initiatives.

The management changes and strategic initiatives announced at the AGM reflect Valiant Laboratories' focus on strengthening its market position and adapting to industry challenges. As the company moves forward with its diversification plans and capacity expansion, stakeholders will be watching closely to see how these changes translate into financial performance and market competitiveness in the coming years.