JK Agri Genetics Limited has disclosed receiving an income tax order from the Commissioner of Income Tax – Appeals regarding the disallowance of research and development expenses for Financial Year 2017-18. The communication was received on 17th April 2026 through the National Faceless Appeal Centre (NFAC), Delhi.

Background of the Tax Matter

The current development stems from an ongoing tax dispute that began with the company's income tax return filed for Financial Year 2017-18. In April 2021, the IT Department passed an assessment order disallowing expenses of ₹9.89 crore, specifically the weighted deduction of 150% under section 35(2AB) of the IT Act on R&D expenses of ₹6.59 crore. The initial tax impact was calculated at ₹3.42 crore, with the disallowance based on non-receipt of Form 3CL from the Department of Scientific and Industrial Research (DSIR).

Current Order Details

In April 2023, DSIR had disallowed only ₹1.50 crore towards labour expenses that were outsourced in nature and subsequently filed Form 3CL with the IT Department. Based on this development and the company's appeal, the Commissioner of Income Tax (Appeals) has now passed an order confirming the disallowance of ₹1.50 crore of labour expenses as per the Form 3CL issued by DSIR.

Financial Impact

The financial implications of this order are limited due to the company's tax position:

• Demand Amount: ₹0.52 crore (including applicable interest)
• Cash Impact: No cash outflow expected
• Adjustment Mechanism: The demand will be adjusted against available MAT credit

The company has confirmed that the demand amount will be set off against its existing Minimum Alternate Tax (MAT) credit balance, eliminating the need for any cash payment.

Company's Response Strategy

JK Agri Genetics Limited is actively considering its legal options in response to this order. The company has indicated that it is contemplating filing an appeal against the Commissioner (Appeals) order before the Income Tax Appellate Tribunal (ITAT). The prescribed timeline for filing such an appeal is within sixty days of receipt of the order.

Compliance and Disclosure

The company has made this disclosure in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure confirms that no penalties, restrictions, or sanctions have been imposed pursuant to this communication, and no aberrations or non-compliances have been identified by the tax authority in the current order.

JK Agri Genetics Limited has successfully submitted its quarterly compliance certificate under SEBI regulations, demonstrating adherence to mandatory dematerialization procedures for the quarter ended 31st March 2026. The submission was made on 6th April 2026 to both major depositories in India.

Regulatory Compliance Submission

The company filed its certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 with National Securities Depository Limited and Central Depository Services (India) Limited. Company Secretary and Compliance Officer Anoop Singh Gusain signed the submission letter, ensuring proper regulatory adherence.

Registrar Confirmation

Alankit Assignments Limited, acting as the company's Registrar and Share Transfer Agent, provided comprehensive confirmation of compliance procedures. The registrar certified that all physical share certificates received for dematerialization of equity shares were processed according to regulatory requirements.

Key confirmations provided by Alankit Assignments Limited include:

• Securities comprised in certificates have been listed on stock exchanges
• Certificates underwent due verification process
• Physical certificates were properly mutilated and cancelled
• Depository name substituted in records as registered owner

Corporate Structure Details

JK Agri Genetics Limited operates with a distributed office structure across major Indian cities. The company maintains its registered office at 7, Council House Street, Kolkata – 700 001, while the administrative office is located at Varun Towers, Begumpet, Hyderabad. The secretarial department operates from Gulab Bhawan in New Delhi, where compliance activities are coordinated.

The quarterly compliance certificate represents part of ongoing regulatory obligations for listed companies, ensuring transparency in share transfer and dematerialization processes. This submission maintains JK Agri Genetics Limited's commitment to regulatory compliance and corporate governance standards.