Bombay Dyeing and Manufacturing Company Limited has made a regulatory disclosure under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, informing stock exchanges of a significant development in an ongoing legal proceeding. The disclosure was made on May 7, 2026, and is signed by Company Secretary Sanjive Arora.

Background of the Regulatory Proceedings

The disclosure is a continuation of the company's previous communication dated January 16, 2026, in which it had informed the exchanges that the Hon'ble Securities Appellate Tribunal (SAT) had pronounced its Final Order, setting aside the order dated October 21, 2022 passed by the Securities and Exchange Board of India (SEBI). The key milestones in this regulatory matter are summarised below:

SEBI Challenges SAT's Final Order

In the latest development, SEBI has challenged the SAT order dated January 16, 2026, which had originally ruled in favour of the company. Bombay Dyeing has stated that it is in the process of reviewing this development in consultation with its legal advisors and will take all necessary steps as may be required in accordance with applicable law.

Company's Stated Position

The company has reiterated its stance on the matter, maintaining that it has acted in compliance with applicable legal and regulatory requirements. Bombay Dyeing has affirmed that it will continue to appropriately defend its position in the aforesaid proceedings. The company has also committed to keeping the stock exchanges informed of any further material developments in the matter.

Disclosure Compliance

The regulatory update was submitted to both BSE Limited and the National Stock Exchange of India Ltd. in accordance with the disclosure obligations under SEBI (LODR) Regulations, 2015. The disclosure was digitally signed by Sanjive Arora, Company Secretary (Membership No.: F3814), on May 7, 2026.

The Bombay Dyeing and Manufacturing Company Limited has received an assessment order from the Assessment Unit of the Income Tax Department for Assessment Year 2023-24, disclosing the development under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The order was received by the company via a system-generated email on Monday, 4th May, 2026. The disclosure was signed by Company Secretary Sanjive Arora (Membership No.: F3814) on behalf of the company.

Key Details of the Assessment Order

The assessment order carries significant financial implications for the company. The taxable income has been enhanced by Rs 574.35 cr, which has been set off against available tax losses. Additionally, a notice of income-tax demand of Rs 2,26,760/- has been raised, and penalty proceedings have been separately initiated by the income-tax department.

The following table summarises the key particulars of the assessment order as disclosed by the company:

Grounds for Income Enhancement

The income enhancement has been made on account of the following grounds, as stated in the company's disclosure:

• Transfer pricing adjustments made by the income-tax department
• Disallowance of deduction claimed with respect to real estate income offered in earlier years
• Certain other expenses disallowed by the assessing authority

Impact on Operations and Company's Response

Bombay Dyeing has stated that, except to the extent of the financial impact mentioned in the assessment order, the development has not impacted the operations or other activities of the company. The company has further indicated that it shall take necessary actions, including exercising the legal remedies available under the Income Tax Act, in response to the order and the penalty proceedings initiated against it.