Orient Cement Limited has informed the Exchange about General Updates
ORIENTCEM · price
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Awaiting price reaction for this filing.
Orient Cement has received a rectified income tax order for Assessment Year 2022-23 from the Income Tax Authority. The original order (dated April 30, 2025) had raised a demand of about Rs. 19.6 crore. After rectification, the demand has been drastically reduced to just Rs. 4,91,707 (about Rs. 4.9 lakh). The rectification considered a transfer pricing adjustment of about Rs. 41.2 crore related to power transfer between the company's captive and manufacturing units, and allowed a Section 80IA deduction of about Rs. 11.3 crore claimed by the company. Despite the sharp reduction, the company has stated it will still contest the order by filing an appeal before the Income Tax Appellate Authorities within the prescribed timelines.
This is materially positive for shareholders as the tax liability has dropped from around Rs. 19.6 crore to under Rs. 5 lakh, removing a major overhang. The company will appeal the remaining order, but the financial exposure from this assessment year is now negligible.