Camlin Fine Sciences Limited has received a significant income tax demand notice of ₹5,46,98,560 for Assessment Year 2023-24, the company disclosed to stock exchanges on April 10, 2026. The notice was issued under section 156 of the Income-Tax Act, 1961, following an Assessment Order from the Income Tax Department's Assessment Unit.

Details of the Tax Demand

The demand notice requires the company to deposit the specified amount within 30 days of service. The primary reason for this substantial demand relates to transfer pricing adjustments, specifically concerning Arm's Length Price adjustments for international and domestic transactions entered into by the company with its Associated Enterprises.

Nature of Assessment

The Assessment Order was issued under section 143(3) of the Income-Tax Act, 1961. The demand primarily stems from adjustments made to the Arm's Length Price regarding the value of transactions between Camlin Fine Sciences and its Associated Enterprises. This indicates that the tax authorities have questioned the pricing of inter-company transactions and made upward adjustments, resulting in additional tax liability.

Company's Response and Impact

Camlin Fine Sciences has stated that there is no immediate impact on the company's financial, operational, or other activities due to this order. The company has examined the assessment order and is currently in the process of filing an appeal against it. This suggests that the company disagrees with the tax authorities' assessment and intends to challenge the demand through the appellate process.

Regulatory Compliance

The company has fulfilled its disclosure obligations under Regulation 30 read with sub-para 20 of Para A of Part A of Schedule III of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The disclosure was made simultaneously to both BSE Limited and the National Stock Exchange of India Limited, ensuring transparency with all stakeholders regarding this material development.

The disclosure was signed by Rahul Sawale, Company Secretary and VP Legal, indicating the seriousness with which the company is treating this matter and its commitment to proper corporate governance practices.

Camlin Fine Sciences promoter Ashish Subhash Dandekar has pledged additional equity shares as margin for financial assistance, according to a regulatory disclosure filed on April 9, 2026. The pledge was created on March 30, 2026, in favor of Ashika Credit Capital Limited to address shortfall in security cover requirements.

Share Pledge Details

The latest encumbrance involves 6.50 lakh equity shares, representing 0.34% of the company's total share capital. This pledge was created as additional margin to cover shortfall in security cover with respect to financial assistance obtained by the target company.

Promoter Shareholding Position

Following this transaction, Dandekar's total encumbered shareholding has increased significantly. The promoter maintains a substantial stake in the company while using a major portion as collateral for financial arrangements.

Regulatory Compliance Framework

The disclosure was made in compliance with Regulation 31(1) and 31(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The filing confirms that while the encumbered shares represent more than 50% of the promoter's shareholding, they constitute less than 20% of the company's total share capital.

Ashika Credit Capital Limited, the entity in whose favor the shares have been pledged, operates as a non-banking financial company (NBFC). The pledge arrangement does not involve any debt instruments such as debentures, commercial paper, or certificates of deposit.

Purpose and Utilization

The encumbrance serves as additional margin pledge for covering shortfall in security cover related to financial assistance obtained by Camlin Fine Sciences. This indicates the pledge is being utilized for the benefit of the listed company rather than for personal use by the promoter. The arrangement helps ensure adequate collateral coverage for the company's financial assistance requirements, demonstrating the promoter's commitment to supporting the company's operational needs.