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.

Ambika Cotton Mills Limited has received a significant demand notice of Rs 18,007,822 from the Superintendent Engineer, Dindigul, following a Madras High Court order. The textile company disclosed this development through a regulatory filing dated March 6, 2026, under Regulation 30 of SEBI (LODR) Regulations, 2015.

Court Order and Demand Details

The demand notice, dated March 4, 2026, and received on March 5, 2026, stems from a common order dated December 12, 2025, passed by the Hon'ble Division Bench of Madras High Court in WA Nos.947 of 2019. The order pertains to the balance 50% of deemed demand charges that must be paid by March 12, 2026.

Supreme Court Appeal Status

The company has sought relief through the Tamil Nadu Spinning Mills Association, of which it is a member. A Special Leave Petition (SLP) has been filed before the Hon'ble Supreme Court, which is scheduled for hearing on March 9, 2026, as item number 57. Additionally, the Tamil Nadu Electricity Consumer Association's matter is listed as item number 55 for the same date.

Regulatory Compliance and Impact Assessment

In compliance with SEBI regulations, the company has provided detailed disclosures regarding the demand notice. The regulatory filing includes comprehensive information as required under SEBI Circular SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023.

Financial Impact Statement

The company has clarified that there is no material impact on its financial, operational, or other activities despite the substantial demand amount. The management emphasized that the matter will be dealt with in accordance with the orders of the Hon'ble Supreme Court, indicating their confidence in the legal proceedings.

The outcome of the Supreme Court hearing on March 9, 2026, will be crucial in determining the company's next course of action regarding this demand notice. The company continues to operate normally while awaiting the judicial decision on this matter.