Flair Writing Industries Limited received order from Office of the Commissioner, Central GST and Central Excise, Audit, Surat. Nature and Details of the action(s) taken initiated or order(s) passed: Final audit report mentioning disallowance of ITC for the periods Fiscal Year 2017-18 to Fiscal Year 2021- 22 amounting to tax -­ INR 235,544 plus interest - INR 231,680 and penalty - INR 171,182 aggregating to INR 638,406. Date of receipt of order is April 16, 2024.

The Company has received the Audit report for the periods Fiscal Year 2017-18 to Fiscal Year 2021-22 in the union territory of Daman and Diu. The demand was raised due to wrong availment of ITC on items which are blocked under Sec 17(5) of the CGST Act, 2017 and wrong availment of ITC in GSTR-3B in comparison to GSTR-2A. After due consideration, the Company's management has chosen not to contest or appeal this final GST Audit Report, opting to pay the demanded amounts and penalties.

There is no impact on financial operations or any other activities of the Company due to this.