Aeroflex Enterprises Limited has received an income tax demand order of ₹19,85,543/- from the Assessment Unit of the Income Tax Department for assessment year 2023-24. The company disclosed this development under Regulation 30 of the SEBI Listing Regulations on March 28, 2026.

Income Tax Order Details

The demand pertains to under-reported income which is in consequence of misreporting under section 274 read with section 270A of the Income-tax Act, 1961. The company received the order under section 143(3) read with section 144B of the Income Tax Act, 1961, bearing DIN: ITBA/AST/S/143(3)/2025-26/1087825847(1) dated March 24, 2026.

Company's Response and Impact Assessment

Considering the merits of the case, Aeroflex Enterprises intends to file an appeal before the Appellate Authority within the time limit prescribed under the law. The company management has expressed confidence in achieving a favorable outcome and does not expect the order to have any material financial impact on the company's operations.

Disclosure Timeline and Compliance

The company acknowledged that the disclosure could not be made within the stipulated 24-hour timeline prescribed under SEBI Listing Regulations. The delay was attributed to several factors:

• The order was received via email on March 25, 2026 at 12:19 a.m., outside normal business hours
• March 26, 2026 was a holiday on account of Ashtami and Ram Navami festival
• The order required detailed examination by the finance team to assess implications and verify contents
• Internal consultations and approval processes were necessary to finalize the disclosure

The company confirmed that the delay was inadvertent and due to the time required for detailed examination, not with any intention to withhold material information. Company Secretary and Compliance Officer Alka Premkumar Gupta signed the disclosure on March 28, 2026.

Aeroflex Enterprises Limited has informed stock exchanges about a significant tax demand received by its subsidiary company from the Income Tax Department. The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Tax Demand Details

The subsidiary company, Aeroflex Industries Limited, received an order from the Assessment Unit of the Income Tax Department demanding ₹41,75,88,940. The demand pertains to the disallowance of a claim for waiver of interest on working capital loan in one-time settlement, which the company had treated as non-taxable under section 41 of the Income Tax Act, 1961.

Nature of Dispute

The tax demand stems from the Income Tax Department's disallowance of the subsidiary's claim regarding waiver of interest on working capital loan in a one-time settlement arrangement. The company had originally treated this waiver as non-taxable income under the provisions of section 41 of the Income Tax Act, 1961, but the tax authorities have challenged this treatment.

Company's Response Strategy

Aeroflex Industries Limited has indicated its intention to contest the order through proper legal channels. The subsidiary company plans to file an appeal before the Appellate Authority within the prescribed time limit under the law. Management remains optimistic about the outcome and does not expect the order to have any material financial impact on the company's operations.

Delayed Disclosure Explanation

The company acknowledged that the disclosure was not made within the mandatory 24-hour timeline prescribed under SEBI regulations. The delay occurred because the order was received via email on March 25, 2026 at 10:17 P.M., and the concerned personnel were on leave on March 26, 2026 due to Ashtami and Ram Navami festivals. The matter was promptly escalated to the Company Secretary and Compliance Officer when duties resumed on March 27, 2026 at 10:00 a.m.