Ramco Systems Limited has informed the Exchange about Pendency of Litigation(s)/dispute(s) or the outcome impacting the Company
RAMCOSYS · price
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Ramco Systems' wholly owned subsidiary in the Philippines, Ramco System Inc. (RSI), has received a tax demand from the Philippines' Commissioner of Internal Revenue (CIR) relating to financial year 2017-18. The demand totals PHP 60.18 million (approximately Rs. 9.29 crore), covering Income Tax, Value Added Tax, withholding taxes, Documentary Stamp Tax, and applicable interest. RSI disputes the demand and plans to file an appeal before the Court of Tax Appeals within the prescribed time limit. Based on preliminary assessment and advice from its tax consultant, the company believes it has a strong case and does not expect any material financial impact.
This is a tax dispute at the subsidiary level and the company is contesting it through appeal, so near-term impact on the stock may be limited. However, if the appeal fails, the subsidiary could face a liability of around Rs. 9.29 crore, which investors should monitor.