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) has received income tax re-assessment orders from the DCIT, Central Circle-3(3), Mumbai, for eight assessment years from AY 2013-14 to AY 2020-21, following a search conducted in August 2023. The aggregate demand (excluding AY 2016-17) is INR 141.31 Crores in tax and interest, with penalty proceedings also initiated. For AY 2016-17, an additional erroneous demand of INR 95.83 Crores has been raised due to apparent system issues, for which the company has already filed a rectification application. The company, based on legal advice, believes it has a strong case with favorable precedents and plans to file appeals within the prescribed timelines, stating the orders do not have significant financial implications.
While the tax demand of INR 141.31 Crores is material, the company's confidence in defending the matter and its plan to appeal may limit the actual financial impact. However, the stock could see some short-term pressure due to the litigation overhang and potential cash flow concerns if any advance payment is required during the appeal process.