Garware Hi-Tech Films Limited has informed stock exchanges about receiving a significant income tax demand notice of ₹18.37 crore from the Income Tax Department for Assessment Year 2020-21. The company disclosed this development through a regulatory filing under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Communication Details

The company received the order under Section 154 along with a notice of demand under Section 156 of the Income Tax Act, 1961 on March 30, 2026 at 03:29 p.m. The order was originally dated March 10, 2026 but was received by the company through email on March 30, 2026.

Company's Position and Grounds for Challenge

Garware Hi-Tech Films has expressed confidence in challenging the demand, citing multiple procedural and computational errors. The company believes it has strong merit to oppose the order through a rectification application.

Key grounds for challenge include:

• Procedural Violations: No prior notice was given before passing the order
• Natural Justice: Opportunity of being heard was not provided
• MAT Credit Error: Credit of Minimum Alternate Tax of ₹15.12 crore was not considered in computation
• Erroneous Addition: Addition of ₹1.41 crore is incorrect

Financial Impact Assessment

The company has stated that based on its preliminary assessment, it believes it has a good case on merits and is confident of a favorable outcome at the appellate stage.

Regulatory Compliance

The disclosure was made in compliance with SEBI circular no. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. The company has confirmed that no penalties, restrictions, or sanctions have been imposed pursuant to this communication, and no aberrations or non-compliances were identified by the authority.

The company plans to file a rectification application to contest the demand, emphasizing that the total demand of ₹18.37 crore is incorrect due to the computational and procedural errors identified.

Garware Hi-Tech Films Limited's Board of Directors held a meeting on March 30, 2026, adopting revised policies under the SEBI (Prohibition of Insider Trading) Regulations, 2015. The company formally communicated these policy adoptions to both BSE Limited and National Stock Exchange of India Limited through official intimation letters.

SEBI Compliance Framework

The Garware Hi-Tech Films board specifically adopted two key policies to ensure regulatory compliance and strengthen corporate governance practices. Company Secretary Awaneesh Srivastava formally notified the stock exchanges about the policy adoptions through official communication.

Regulatory Communication Details

The communication was addressed to BSE Limited's Corporate Relationship Department and National Stock Exchange of India Limited's Listing Department, ensuring full regulatory compliance with disclosure requirements.

Policy Implementation and Access

The revised policies focus on preventing insider trading and ensuring fair disclosure of unpublished price sensitive information. These comprehensive frameworks create robust mechanisms for maintaining transparency in information sharing and handling sensitive corporate data.

All revised policies are now available on the company's official website at garwarehitechfilms.com, ensuring stakeholder access to updated governance frameworks. The policy adoption demonstrates Garware Hi-Tech Films' commitment to maintaining high standards of corporate governance and regulatory compliance.