Orient Cement Limited has informed the Exchange about disclosure under Regulation 30 of the SEBI (LODR) Regulations, 2015
ORIENTCEM · price
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Orient Cement Limited received an income tax order under section 143(3) read with section 144C(3) of the Income Tax Act, 1961 for Assessment Year 2023-24. The original tax demand of Rs. 52.40 crore (approximately Rs. 52,40,34,900) was raised primarily due to a Transfer Pricing Adjustment of Rs. 54.33 crore related to the transfer of power from the company's Captive Unit to its Manufacturing Unit. The company considers the order erroneous on various grounds. Upon rectification, the demand is expected to be reduced to approximately Rs. 3.20 crore (Rs. 3,19,81,466). The company plans to file an appeal against the order before Income Tax Appellate Authorities.
The tax demand, if sustained after rectification and appeal, could have a moderate impact on the company's financials. However, since the company is contesting the order, the actual outflow may be significantly lower. This represents a legal/tax dispute rather than an immediate financial liability.