Disclosure under Regulation 30 of the SEBI (LODR) Regulations 2015
Awaiting price reaction for this filing.
3M India has decided to opt into the government's Direct Tax Vivad Se Vishwas Scheme, 2024 to settle long-pending income tax disputes covering FY 2004-05 to FY 2013-14. The settlement will result in a one-time tax liability of approximately Rs. 119 Crores being recognized in the P&L for FY 24-25 as a change in accounting estimate. Actual cash outflow is estimated at only about Rs. 43 Crores, and the company expects a refund of roughly Rs. 10.8 Crores for excess taxes already paid under protest. No interest or penalties will be levied under the scheme, and the company states there is no material impact on its operations or activities.
Shareholders should expect a one-time hit of around Rs. 119 Crores to FY 24-25 earnings due to the settlement of previously contingent tax liabilities, though actual cash outflow is far lower at ~Rs. 43 Crores. Removing these long-pending disputes from contingent liabilities reduces future uncertainty but will weigh on reported profits for the current year.