Kirloskar Brothers Limited has informed the Exchange about Action(s) initiated or orders passed
KIRLOSBROS · price
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Kirloskar Brothers Limited has received a demand notice dated 5 August 2025 from the Andhra Pradesh State Tax Department under the APGST Act, 2017, claiming tax arrears of Rs. 15,48,02,928 (approximately Rs. 15.48 crore) for the financial year 2017-18, payable within 7 days. The demand relates to an unincorporated Joint Venture (IVRCL-KBL-MEIL) formed for a water resources project with the Government of Andhra Pradesh. The company was only a JV partner responsible for supplying pumps and motors (completed in 2012); the lead partner IVRCL is already under insolvency proceedings, and MEIL has taken over the remaining work. The company has stated the tax dues pertain to the JV and not directly to Kirloskar Brothers, and is currently seeking legal advice on the financial impact. No penalty or restriction has been imposed yet under this notice.
This is a tax demand against a JV, not directly against the company, so the direct financial hit may be limited. However, if the tax authority holds the company jointly liable, it could result in a one-time outflow of up to ~Rs. 15.48 crore. The short 7-day payment window and uncertainty around the final liability may create near-term overhang on the stock.