Ador welding Limited has received an income tax demand notice of Rs 13,68,80,598/- for assessment year 2023-24, following an assessment order that the company intends to challenge on multiple grounds. The welding equipment manufacturer disclosed this development under Regulation 30 of SEBI listing regulations, outlining its strategy to contest the demand through various legal remedies.

Assessment Order Details

The Income Tax Department issued the notice of demand dated 31st March, 2026 under Section 156 of the Income-tax Act, 1961. The demand stems from an assessment order passed under Section 143(3) read with Section 144B, which made significant additions to the company's declared income.

Identified Discrepancies

ADOR Welding has identified several computational inconsistencies and procedural errors in the assessment order that form the basis of its planned challenge:

• Income Calculation Mismatch: The assessment order reflects a certain assessed income, while the computation sheet annexed shows a higher assessed income
• Inappropriate MAT Application: MAT provisions were applied despite the company opting for the concessional tax regime where such provisions are not applicable
• Tax Credit Issues: Certain TDS/TCS credits appear to have been short-granted or not granted at all

Company's Response Strategy

The company has outlined a comprehensive legal strategy to contest the demand, expressing confidence in its position based on legal and factual grounds. ADOR Welding plans to pursue multiple remedies simultaneously:

• Filing an appeal before the National Faceless Appeal Centre (NFAC)
• Submitting rectification applications before the Jurisdictional Assessing Officer for computation errors
• Exploring other available legal options under the Income Tax Act

Penalty Proceedings

In addition to the tax demand, the company has received a show cause notice under Section 274 read with Section 271AAC(1) of the Income-tax Act, 1961 for initiation of penalty proceedings. No penalty has been levied at this stage, and the company will file an appropriate response to contest the penalty proceedings.

Financial Impact Assessment

Based on preliminary assessment and advice from tax consultants, ADOR Welding believes the additions made in the assessment order and resultant demand are not sustainable on legal and factual grounds. The company currently expects that the order will not have any material financial impact on its financial position, subject to the outcome of the proposed legal proceedings.

The company has made this disclosure available on its website and continues to evaluate the order in detail while preparing its comprehensive legal response to challenge the assessment.

Ador welding Limited has announced significant changes in its senior management structure, filing a disclosure under SEBI Regulation 30 regarding the retirement of a key executive and redesignation of another senior official effective April 1, 2026.

Senior Management Transition Details

The company has disclosed two major organizational changes that will reshape its leadership structure. Mr. Melville Ferns will retire from his position as Head of India M&R Business and Customer Success, with his tenure concluding at the close of business hours on March 31, 2026. This retirement marks the end of his association with the senior management team.

Organizational Restructuring

Mr. Kiran Mane's redesignation represents a strategic shift in the company's organizational structure. While he will continue as an integral part of the organization in his new role as Product Head for Flares & Process Equipment, he will no longer be part of the senior management team. The company has expressed appreciation for his continued association and valuable contributions.

Business Realignment Strategy

The changes reflect a broader organizational realignment within Ador Welding Limited. The redesignation of Mr. Kiran Mane is specifically attributed to the consolidation of the FPED (Flares & Process Equipment Division) Business into the M&R (Manufacturing & Repair) Business. This consolidation indicates the company's strategic focus on streamlining operations and optimizing business divisions.

Regulatory Compliance

The disclosure has been made pursuant to Regulation 30 read with Para A(7) of Part A of Schedule III of SEBI (LODR) Regulations, 2015. The company has provided comprehensive details as required under Regulation 30(6) and SEBI Circular No SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. The intimation has also been uploaded on the company's website for stakeholder access.

Management Continuity

Despite these changes, Ador Welding Limited has emphasized continuity in operations and leadership. The company's approach to retaining Mr. Kiran Mane in a specialized product leadership role demonstrates its commitment to leveraging existing expertise while adapting to evolving business requirements. The transition appears designed to maintain operational stability while implementing strategic organizational improvements.