Disclosure under Regulation 30 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015
Awaiting price reaction for this filing.
Kalpataru Projects International Limited (KPIL) received a regular income tax assessment order from the Deputy Commissioner of Income Tax, Central Circle-3(3), Mumbai for Assessment Year 2022-23 on 3rd May 2025. The order has resulted in certain additions/disallowances leading to an aggregate tax demand of INR 1.71 Crores, which has been adjusted against the refund the company was otherwise entitled to receive. The tax authorities have also initiated penalty proceedings against the company. KPIL has stated that it believes it has a strong case to defend, including favorable precedents in similar matters, and will file an appeal before the appellate authorities within the prescribed timeline. The company noted that the cumulative/aggregate amount across similar matters has crossed the materiality threshold, triggering this disclosure.
Short-term: A reduction of INR 1.71 Crores in the company's tax refund for AY 2022-23, though the company states this is not financially significant and will be contested. Shareholders should note the open tax litigation and potential penalty exposure, but the company appears confident of a favorable outcome at appeal.