Ambika Cotton Mills Limited has officially informed stock exchanges that it does not fall under the category of large corporate as defined by SEBI's Chapter XII operational circular dated August 10, 2021. The company made this disclosure on April 1, 2026, clarifying its exemption from specific fund raising requirements.

SEBI Chapter XII Non-Applicability

The textile manufacturer submitted its formal disclosure to both BSE Limited and The National Stock Exchange of India Ltd, confirming that it does not meet the applicability criteria for large corporates under the SEBI framework. This classification exempts the company from mandatory disclosure requirements related to fund raising through debt securities.

Regulatory Compliance Details

As part of the disclosure process, Ambika Cotton Mills Limited provided the required Annex XII-A form with key particulars:

Framework Implications

The SEBI Chapter XII framework requires large corporates to raise a specified portion of their incremental borrowing through debt securities. Companies that fail to meet these requirements face penalties, including fines of 0.20% of the shortfall amount levied by stock exchanges at the end of two-year block periods.

Corporate Authorization

The disclosure was duly authorized by company officials, with Company Secretary Radhe Shyam Padia and Chief Financial Officer M. Vijayakumar signing the compliance documents. The company confirmed that given its non-large corporate status, the mandatory borrowing requirements and associated disclosure obligations do not apply to its operations.

This regulatory clarification provides transparency to investors and stakeholders regarding the company's compliance status under current SEBI operational guidelines for corporate fund raising activities.

Ambika Cotton Mills Limited has disclosed to stock exchanges that it received an assessment order from the Income Tax Department with a demand of ₹45.24 lakh for Assessment Year 2024-25. The communication was filed under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Assessment Order Details

The Income Tax Department's Assessment Unit passed the order under Section 143(3) dated 29.03.2026, which the company received on the same day at 9:15 PM through email. The assessment resulted in significant disallowances that formed the basis of the tax demand.

Company's Position and Dispute

Ambika Cotton Mills Limited has contested the assessment order, maintaining that the disallowed expenditure does not fall within the definition of royalty or technical fees. The company specifically argued that expenses related to export sales should not be disallowable, citing decisions from the Jurisdictional High Court to support its position.

The Assessment Unit rejected the company's submissions and proceeded with the disallowances. According to the company's disclosure, this addition by the Assessment Unit represents a matter of legal interpretation and contradicts the Jurisdictional High Court's decision.

Regulatory Compliance and Next Steps

The company has provided detailed information as required under SEBI regulations:

Appeal Process and Financial Impact

Ambika Cotton Mills Limited confirmed that the assessment order is appealable before the Commissioner of Income Tax (Appeals) and stated that the appeal will be filed within the prescribed time limit. The company has assessed that there is no material impact on its financial, operational, or other activities due to this assessment order.

The disclosure was signed by Company Secretary Radhe Shyam Padia and submitted to both the National Stock Exchange of India Limited and BSE Limited as part of the company's regulatory compliance obligations.