Crompton Greaves Consumer Electricals Limited has informed the Exchange about Action(s) taken or orders passed
CROMPTON · price
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Crompton Greaves Consumer Electricals has received an order from the Commissioner of Income Tax (Appeals), National Faceless Appeals Centre, Delhi, relating to its appeal against an assessment order for Assessment Year 2021-22. The tax authority has raised a demand of about Rs 10.23 crore (tax of Rs 9.78 crore plus interest of Rs 0.45 crore) on account of disallowance of provisions for warranty and after-sales services, depreciation on intangible assets, and ESOP expenses. The company has stated that the order has no material impact on its financials, operations, or other activities. It plans to file a further appeal with higher appellate authorities and, based on the merits of the matter and advice from consultants, reasonably expects a favourable outcome.
The Rs 10.23 crore demand is small relative to the company's scale and the company intends to appeal further, so near-term impact on the stock should be limited. Investors should, however, keep an eye on the next appellate ruling, as an unfavourable outcome could lead to a cash outflow.