Kovilpatti Lakshmi Roller Flour Mills Ltd has successfully concluded Goods and Services Tax (GST) proceedings for the Assessment Year 2022-23 following an order from the Office of the Assistant Commissioner (ST), Tirunelveli Junction Assessment Circle. The authority accepted the company's response to a discrepancy notice, dropped all alleged defects, and confirmed that no tax demand, penalty, or interest is payable. This conclusion resolves potential liabilities amounting to significant sums under reverse charge mechanism (RCM), exempted turnover reconciliation, and Input Tax Credit (ITC) claims.

The proceedings originated from a discrepancy notice issued in Form GST ASMT-10 (Ref No: ZD3303261190501) dated March 13, 2026. The notice had identified four specific issues, including a demand for differential tax of ₹46,582 under the RCM head and a request for reconciliation regarding exempted turnover reported at ₹1,72,57,46,725 for FY 2022-23. Additionally, the authority had sought explanations for ITC claims totalling ₹1,57,54,050 and had proposed to recover ₹34,53,727 of ITC claimed on allegedly ineligible transactions.

In response, the company submitted a detailed reply along with supporting documents in Form GST ASMT-11 on April 13, 2026. Following this submission, the Office of the Assistant Commissioner (ST) passed an order in Form GST ASMT-12 (Ref No. ZD3307260814853) on July 10, 2026. The order explicitly stated that the company's reply was accepted, all defects were verified and dropped, and the proceedings were concluded.

Details of the Discrepancy Notice

The initial notice had raised concerns across several categories of tax filings and credit claims. The table below outlines the specific allegations and the subsequent outcome.

The company confirmed that there is no financial, operational, or other impact on its activities as a result of this order. The disclosure was submitted to the exchanges pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements), 2015. The company attributed the delay in disclosure to the time required for a detailed assessment of the order and evaluation of applicable disclosure requirements.

Kovilpatti Lakshmi Roller Flour Mills Limited reported a net profit of ₹809.46 crore for the financial year ended March 31, 2026, a significant increase from ₹115.17 crore in the previous year. Revenue from operations for the year stood at ₹41,086.03 crore, compared to ₹42,658.78 crore in FY25. The Board of Directors has recommended a dividend of ₹1 per equity share with a face value of ₹10 for the financial year 2025-26, subject to shareholder approval at the 64th Annual General Meeting.

Audited Financial Results

The statutory auditor issued an unmodified audit opinion on the standalone financial results for the quarter and year ended March 31, 2026. For the quarter ended March 31, 2026, the company reported a net profit of ₹298.57 crore, compared to ₹208.01 crore in the corresponding period of the previous year. Total income for the quarter was ₹10,051.50 crore, while total expenses amounted to ₹9,880.51 crore. Exceptional items for the quarter included a profit on the sale of assets amounting to ₹165.58 crore.

Board Approvals and Appointments

The Board approved the re-appointment of M/s. P Mohan Kumar & Co as Cost Auditor for the Engineering division for FY27 and the appointment and re-appointment of M/s. BM & Associates as Internal Auditors for the Foods and Engineering divisions. Additionally, the Board approved the re-appointment of Sri. Sharath Jagannathan as Chairman and Managing Director for a further period of three years effective from January 25, 2027, to January 24, 2030, subject to shareholder approval.

Capital Expenditure and Asset Sale

The Board granted in-principle approval for capital expenditure estimated at ₹20 crore for the repowering and replacement of windmills at Aralvoimozhy and the upgradation of equipment at the Engineering division. The projects are expected to be completed by March 31, 2027. The Board also approved the sale of unused vacant land in Gangaikondan to Sri. Sharath Jagannathan, a related party, for a maximum consideration of ₹6 crore on an arm's length basis.

Annual General Meeting Details

The 64th AGM is scheduled for September 9, 2026, at 09:15 AM IST via video conferencing. The record date for determining dividend eligibility is September 2, 2026. The register of members will be closed from September 3, 2026, to September 9, 2026. Remote e-voting will be open from September 6, 2026, to September 8, 2026.