Shriram Finance Limited has informed the Exchange about Action(s) taken or orders passed by Superintendent of Central GST & Excise Range-I, Durgapur-I Division levying penalties of Rs.14,90,328/- and Rs.1,632/- in respect of show cause cum demand notices against erstwhile Shriram City Union Finance Limited (which was amalgamated with Shriram Finance Limited w.e.f. April 1, 2022).
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The office of the Superintendent of Central GST & Excise, Durgapur-I Division has levied penalties of Rs. 14,90,328 and Rs. 1,632 (total about Rs. 14.92 lakh) on the erstwhile Shriram City Union Finance Limited in connection with show cause cum demand notices. Shriram City Union Finance was amalgamated with Shriram Finance Limited effective April 1, 2022, so the liability has devolved on Shriram Finance. The penalties relate to GST/excise matters handled by the Range-I Durgapur jurisdiction. The financial impact is negligible relative to Shriram Finance's overall scale.
The penalties are small in absolute terms and unlikely to materially affect the stock price or shareholder value. Investors should view this as a routine, legacy tax proceeding inherited via the amalgamation with no bearing on current business operations.