Sterling and Wilson Renewable Energy Limited (SWSOLAR) has received a communication from Tamil Nadu GST authorities regarding a shortfall of tax for the period January 2019 to April 2019, aggregating to approximately Rs. 5.74 crore, along with an equal amount of penalty and applicable interest. The order was issued on August 26, 2025, and the company received the same on August 26, 2025.

Background of the GST Order

The Joint Commissioner, GST & Central Excise, Chennai South Commissionerate, issued the order, citing a tax shortfall for the stated period. The order also provides that if the full tax amount along with interest and 50% of the penalty is paid within 30 days, the matter will be considered closed for these demands.

Company Response and Indemnity Coverage

Sterling and Wilson has stated that the order has no financial implications on the company, as the liability is fully covered under an Indemnity Agreement entered with:

• Reliance New Energy Limited

• Shapoorji Pallonji and Co. Pvt. Ltd.

• Mr. Khurshed Daruvala

Given the situation, the company has decided to file an appeal against the order within the prescribed statutory time frame to protect its interests.

Key Points

• The communication pertains to tax shortfall from January to April 2019, as identified by the Tamil Nadu GST authorities.

• The company confirms no aberrations or non-compliances from its side.

• The penalty and interest, though mentioned in the order, will not affect Sterling and Wilson financially because of the indemnity agreements in place.

Regulatory Compliance

The disclosure has been made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring full transparency to shareholders and investors. The company’s appeal process will follow the statutory procedures, and the appeal is expected to safeguard its interests while challenging the GST order.

Implications for Investors

Investors and stakeholders are assured of the company’s financial stability, as there is no outflow required for the GST order. Sterling and Wilson’s operational and financial position remains unaffected, and the company continues to focus on renewable energy projects and growth across India.

Conclusion

Sterling and Wilson Renewable Energy Limited has promptly acknowledged the GST shortfall order and plans to appeal within the prescribed period. With strong indemnity arrangements in place, there is no expected financial burden, ensuring continued investor confidence and corporate compliance. The company remains committed to transparent communication with regulators and shareholders regarding any statutory or regulatory matters.

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