DCX Systems faces ₹1.46 crore demand for excess ITC claim

DCX Systems has received a demand of ₹1.46 crore from the Commercial Taxes Department, Government of Karnataka, regarding an excess Input Tax Credit (ITC) claim for the Financial Year 2022-23. The order, received on June 16, 2026, imposes a penalty of ₹8,02,414 along with interest and tax dues. The company stated that the order does not have a material impact on its financial or operational activities and is exploring options to challenge the demand before the appropriate authority.

Details of the Demand

The Office of the Deputy Commissioner of Commercial Taxes (Large Taxpayer Unit) – 5 issued the order following an observation of excess ITC claims by the company. The total demand comprises tax, interest, and penalty components.

Particulars	Amount (In ₹)
Tax	80,24,149
Interest	57,81,344
Penalty	8,02,414
Total	1,46,07,907

Violation and Company Response

The department identified the violation as an excess ITC claim for the Financial Year 2022-23. In its disclosure, DCX Systems noted that the order was received via electronic communication. While the company acknowledged the demand, it affirmed that there is no material impact on its activities. It further indicated that it plans to file an appeal against the order in due course.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.37%	+9.27%	+0.33%	-0.53%	-31.72%	-34.28%

DCX Systems Limited disclosed that its promoters have not created any encumbrance on their equity holdings for the financial year ended March 31, 2026. The company submitted the annual disclosures to BSE Limited and National Stock Exchange of India Ltd pursuant to Regulation 31(4) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The filing confirms that the pledged status of promoter shares remains unchanged, providing stability regarding the ownership structure of the defence and aerospace sector player.

The disclosures were received from three promoter entities: Dr. Raghavendra Rao Hosakote Shamarao, Raneal Technologies Private Limited, and NCBG Holdings Inc. Each entity confirmed that they had not pledged any of their holdings directly or indirectly during the financial year 2025-26. The company, in its filing dated April 08, 2026, stated that these declarations were submitted for the records of the stock exchanges and the Audit Committee.

Promoter Holdings and Disclosures

The following table details the shareholding of the promoters as disclosed in the regulatory filing:

Promoter Name	Number of Equity Shares	Face Value
Dr. Raghavendra Rao Hosakote Shamarao	38,12,558	₹2
Raneal Technologies Private Limited	3,18,84,542	₹2
NCBG Holdings Inc	2,24,07,242	₹2

Dr. Raghavendra Rao Hosakote Shamarao confirmed in his declaration dated April 01, 2026, that he holds 38,12,558 equity shares. Raneal Technologies Private Limited, through its authorized signatory Ramegowda Shiva Kumar, disclosed a holding of 3,18,84,542 equity shares. NCBG Holdings Inc, represented by authorized signatory Neal Jeremy Castleman, reported a holding of 2,24,07,242 equity shares.

Regulatory Compliance

The submissions were made in compliance with Regulation 31(4) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. This regulation mandates the disclosure of any encumbrance created by promoters on their shareholding. The absence of encumbrance indicates that the promoters have not utilized their share capital for borrowing purposes during the specified period. The letters were addressed to the stock exchanges and copied to the Audit Committee of DCX Systems .