Carraro India Limited has received a Final Assessment Order and Notice of Demand from the Income Tax Department, marking the latest development in an ongoing tax assessment process. The order, dated April 8, 2026, was received by the company at 2:45 PM on the same day from the Faceless Assessment Unit of the Income Tax Department.

Assessment Order Details

The Final Assessment Order has been issued under the provisions of Section 143(3) read with sections 144C(3) and 144B of the Income Tax Act, 1961. This order follows a series of previous communications, including a draft assessment order dated March 3, 2026, and a show-cause notice dated February 12, 2026.

Financial Impact and Adjustments

The assessment order reveals significant financial adjustments, though the amounts have been reduced from earlier proposals. The contentions settled under the Final Assessment Order include additions totaling Rs. 61,73,41,693/-, which pertain to the Transfer Pricing Assessment Order dated January 22, 2026. Additionally, other corporate tax adjustments amount to Rs. 52,61,308/-, representing a reduction from the earlier adjustment of Rs. 27,63,98,380/- proposed in the show-cause notice.

Company's Response Strategy

Carraro India has outlined its plan to contest the assessment order through proper legal channels. The company intends to file an appeal with the jurisdictional Commissioner of Income Tax (Appeals) based on legal advice to contest the tax adjustments contained in the Final Assessment Order and Notice of Demand. This appeal will be filed within the prescribed timelines as mandated by tax regulations.

Operational Impact Assessment

According to the company's disclosure, there is no immediate impact on financial, operations, or other activities due to the Final Assessment Order and Notice of Demand. The company maintains confidence in its position and believes it will receive favorable relief from the appropriate forum where such tax adjustments are appealed.

Regulatory Compliance

The disclosure has been made in compliance with Regulation 30 read with Para A of Part A of Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has provided comprehensive details as required under the SEBI Master Circular dated November 11, 2024, ensuring full transparency with stakeholders regarding this significant regulatory development.

Carraro India Limited has submitted its quarterly compliance certificate to stock exchanges, fulfilling regulatory requirements under SEBI (Depositories and Participants) Regulations, 2018. The certificate covers the quarter ended March 31, 2026, and confirms proper handling of securities dematerialization and rematerialization processes.

Regulatory Compliance Filing

The company filed the compliance certificate on April 8, 2026, with both BSE Limited and National Stock Exchange of India Limited. The certificate was issued under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, which mandates quarterly reporting of dematerialization activities.

Registrar Confirmation

MUFG Intime India Private Limited, formerly known as Link Intime India Private Limited, serves as the company's Registrar and Share Transfer Agent. The RTA provided confirmation that all required details of securities dematerialized and rematerialized during the quarter have been furnished to the relevant stock exchanges.

The certificate was signed by Ashok Shetty, Vice President – Corporate Registry at MUFG Intime India Private Limited, confirming compliance with the regulatory framework governing depositories and participants.

Company Secretary Certification

Mohith Kumar Khandelwal, Company Secretary and Compliance Officer of Carraro India Limited, digitally signed the submission document. The filing includes the compliance certificate as an annexure, ensuring transparency in the company's adherence to SEBI regulations.

Regulatory Framework

The quarterly compliance certificate represents part of the ongoing regulatory obligations for listed companies in India. Under Regulation 74(5) of the SEBI DP Regulations, companies must ensure proper documentation and reporting of all dematerialization and rematerialization activities to maintain transparency in securities handling.

This filing demonstrates Carraro India Limited's commitment to maintaining regulatory compliance and transparent reporting practices in accordance with SEBI guidelines for the quarter ended March 31, 2026.