Zodiac Energy Limited Receives Favorable GST Order with Nil Demand for FY2021-22

Zodiac Energy Limited has announced the successful conclusion of GST proceedings with a favorable outcome, as the company received an order from Gujarat tax authorities resulting in nil demand and no financial impact.

GST Proceedings Resolution

The company received an order dated December 22, 2023, from the Office of the Assistant Commissioner of State Tax, Jurisdiction: Ghatak-5 (Ahmedabad), Range-2, Division-1, Gujarat, concluding the GST proceedings that were initiated against the company. The proceedings had arisen pursuant to an intimation issued under Section 73 of the CGST Act, 2017, in relation to alleged GST liability for the financial year 2021-22.

Details of the Tax Matter

The tax department had initially issued a Show Cause Notice dated September 01, 2023, under Section 73 of the CGST Act, 2017, alleging discrepancies observed during scrutiny of GST returns for the period from April 2021 to March 2022. The allegations were specifically related to Input Tax Credit (ITC) availed by the company during this period.

Parameter	Details
Issuing Authority	Assistant Commissioner of State Tax, Ghatak-5 (Ahmedabad)
Show Cause Notice Date	September 01, 2023
Order Date	December 22, 2023
Period Under Scrutiny	April 2021 to March 2022
Nature of Allegation	Discrepancies in ITC availed
Final Outcome	Notice quashed and set aside

Favorable Resolution

Upon due consideration of the company's submissions, the competent authority passed an order concluding the matter with nil demand and nil liability. The Assistant Commissioner has quashed and set aside the Show Cause Notice through Order vide Reference No. ZD240923108013R dated December 22, 2023.

Financial Impact Assessment

The company has confirmed that there is no financial impact resulting from this resolution. Since the Assistant Commissioner of State Tax has quashed and set aside the Show Cause Notice, there is no impact on the financial, operational, or other activities of the company.

Impact Category	Status
Financial Impact	Nil
Operational Impact	Nil
Demand Amount	Nil
Penalty	Nil
Settlement Required	No

Regulatory Compliance

Zodiac Energy Limited made this announcement on December 24, 2023, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company received the order through email on December 22, 2023, and it was forwarded to the authorized officers of the company on December 24, 2023. This favorable resolution demonstrates the company's compliance with tax regulations and successful defense of its GST practices for the financial year 2021-22.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.57%	-5.52%	-4.35%	-39.19%	-41.95%	+2,018.96%

Zodiac Energy Limited (ISIN: INE761Y01019) has successfully passed a special resolution through postal ballot, granting the company authority to provide loans, guarantees, or security under Section 185 of the Companies Act, 2013. The resolution received overwhelming support from shareholders, with 99.9994% of votes cast in favor.

Shareholder Approval Details

The remote e-voting process, conducted from November 8 to December 7, 2025, saw participation from 99 shareholders. This high level of engagement and support indicates strong shareholder confidence in the company's financial decisions and future prospects.

Financial Position

The approval of this resolution comes at a time when Zodiac Energy Limited is experiencing significant financial growth. An analysis of the company's balance sheet reveals impressive year-over-year improvements across various financial metrics:

Financial Metric	Current Year (2025-03)	1 Year Ago (2024-03)	Change (%)
Total Assets	₹302.40 crore	₹115.60 crore	161.59%
Current Assets	₹185.40 crore	₹108.60 crore	70.72%
Fixed Assets	₹91.90 crore	₹4.20 crore	2088.10%
Total Equity	₹96.60 crore	₹47.60 crore	102.94%
Reserve & Surplus	₹81.50 crore	₹32.90 crore	147.72%

Implications of the Resolution

The approval of this special resolution under Section 185 of the Companies Act, 2013, provides Zodiac Energy Limited with increased financial flexibility. This authority allows the company to:

Offer loans to entities in which directors are interested
Provide guarantees or security on behalf of such entities

This financial maneuverability could potentially support the company's expansion plans, strategic investments, or support for subsidiaries and associated companies.

Conclusion

The overwhelming shareholder support for this resolution, coupled with the company's strong financial growth, suggests a positive outlook for Zodiac Energy Limited. As the company moves forward with this new financial authority, stakeholders will be keen to observe how this translates into future growth and value creation.

Investors and market watchers should continue to monitor Zodiac Energy Limited's financial statements and corporate actions to assess the impact of this newly granted authority on the company's overall performance and strategic direction.