Zenith Fibres Faces Rs 14.78 Lakh GST Demand and Penalty Order

Zenith Fibres Limited received an Order-In-Original from the CGST and Central Excise Audit Commissionerate, Vadodara demanding recovery of Rs 14,78,179 for wrongly availed Input Tax Credit (ITC) under GST provisions. The order also imposes a penalty of Rs 14,78,179 and interest charges for the period FY 2017-18 to FY 2022-23. The company had initially received a Show Cause Notice proposing a GST demand of Rs 19,43,542 along with interest and penalty. Zenith Fibres plans to file an appeal challenging the GST imposition and penalty levy. The company states it is unlikely the potential demand will materialize as a claim and considers it difficult to assess the financial impact until the matter's outcome from the Adjudicating Authority.

Zenith Fibres Reports Net Loss of Rs 5.78 Crore in Q2 FY26

Zenith Fibres Limited reported a net loss of Rs 5.78 crore for the quarter ended September 30, 2025, compared to a net profit of Rs 37.82 crore in the previous quarter. Revenue from operations declined to Rs 934.79 crore from Rs 972.02 crore in the preceding quarter. For the half-year period, the company posted a net profit of Rs 32.04 crore on revenue of Rs 1,906.81 crore. The company operates in two segments: manufacturing of manmade fiber and power generation through wind turbines. The manmade fiber segment reported a loss before tax and interest of Rs 104.92 crore, while the wind mill segment generated a profit of Rs 20.88 crore for the quarter. Total expenses for the quarter stood at Rs 1,018.15 crore, with cost of materials consumed being the largest component at Rs 583.52 crore.

Zenith Fibres Limited Announces E-Voting Results from 36th Annual General Meeting

Zenith Fibres Limited held its 36th Annual General Meeting on September 26, 2025, through video conferencing. The company submitted e-voting results showing all five resolutions were passed. Key resolutions included adoption of audited financial statements for the year ended March 31, 2025, declaration of Rs. 1 dividend per equity share (10% on face value of Rs. 10), re-appointment of Mr. Aman Rungta as director, continuation of Mrs. Rashmi Desai as Independent Director beyond age 75, and appointment of secretarial auditor. The meeting had 4,972 total shareholders on record date, with 28 shareholders attending via video conferencing (6 promoter group, 22 public). Voting participation was 50.58% of outstanding shares, with resolutions receiving 96.30% to 96.54% approval rates.

Zenith Fibres' Rs 185 Lakh Insurance Claim for Gujarat Windmill Generator Restoration Rejected

Zenith Fibres Limited's insurance claim worth Rs 185 lakhs for restoring a failed generator at their windmill in Gujarat has been rejected by the insurance company. The company had initially notified the insurer of an estimated loss of Rs 2 crores, and a surveyor completed the inspection process, but no amount was realized under the policy. The actual restoration cost was Rs 185 lakhs, and the windmill resumed power generation on March 1, 2025, after replacing the damaged generator with a new one. The company's Polypropylene Staple Fiber production remained unaffected during this period. Zenith Fibres is now seeking legal opinion to contest the rejection and recover the incurred restoration costs.