Electrotherm (India) Limited has informed stock exchanges about receiving a significant income tax demand notice from the Deputy Commissioner of Income Tax, Ahmedabad. The company disclosed this development under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Income Tax Assessment Details

The Income Tax Department has issued an Assessment Order under Section 147 and a Demand Notice under Section 156 of the Income Tax Act, 1961, for assessment year 2019-20. The company downloaded these documents from the Income Tax Portal on March 31, 2026, though no official email was received from the Income Tax Department.

Company's Response Strategy

Electrotherm management has outlined its approach to address the tax demand:

• The company will seek legal advice to file an appeal with the Income Tax Department against the assessment order
• Based on the company's own assessment and legal advice received, management remains confident about the situation
• At this stage, management believes there will be no impact on the company's financials, operations, or other activities

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the SEBI LODR Regulations, 2015, and follows the requirements outlined in SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. The communication was signed by Shailesh Bhandari, Executive Vice Chairman (DIN: 00058866), and submitted to both BSE Limited and National Stock Exchange of India Limited.

Key Timeline

The company has emphasized that while the demand notice represents a significant amount, it plans to contest the assessment through proper legal channels and does not anticipate any immediate operational or financial disruption.

Electrotherm (India) Limited has received a significant income tax assessment order and demand notice from the Income Tax Department, totaling ₹72,69,05,210 for assessment year 2017-18. The company disclosed this development in compliance with SEBI listing regulations on March 10, 2026.

Assessment Order Details

The Income Tax Department's Assessment Unit issued the order under Section 147 read with Section 144B of the Income Tax Act, 1961, along with a Demand Notice under Section 156. The assessment order and demand notice were dated March 6, 2026, and received by the company on March 10, 2026.

Company's Response Strategy

Electrotherm has outlined its approach to address the income tax demand. The company plans to seek legal advice and file an appeal with the Income Tax Department against the assessment order. This indicates the company's intention to contest the demand through proper legal channels.

Management Assessment

Despite the substantial demand amount, the company's management has expressed confidence regarding the potential impact on business operations. Based on the company's own assessment and legal advice received, the management believes there will be no impact on the financials, operations, or other activities of the company at this stage.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The announcement was signed by Shailesh Bhandari, Executive Vice Chairman (DIN: 00058866), ensuring proper corporate governance protocols were followed in communicating this material development to stakeholders.

Key Parameters

The company's proactive disclosure and planned legal response demonstrate its commitment to addressing the matter through appropriate channels while maintaining transparency with investors and regulatory authorities.