Kansai nerolac paints Limited has received a penalty confirmation of Rs 29,26,459 under Central Goods and Services Tax (CGST) Rules for partial disallowance of Input Tax Credit (ITC). The company disclosed this development through a regulatory filing dated 24th April, 2026, pursuant to SEBI listing regulations.

Order Details and Authority

The Commissioner (Appeals), CGST & CX Appeal, Allahabad passed the order under Rules 113(1) & 115 of CGST Rules, 2017. The company received the direction on 23rd April, 2026, confirming the penalty amount.

Nature of Violation

The penalty relates to a demand confirmed in appeal on account of partial disallowance of Input Tax Credit claimed by the company during FY 2020-2021 for the State of Uttar Pradesh. The disallowance pertains to ITC claims made by the company during that financial year.

Company's Response and Next Steps

Kansai Nerolac Paints has indicated that it possesses relevant records and legal precedence to support its claim. The company plans to file a further appeal against the said order before the GST Tribunal to contest the penalty.

Financial Impact Assessment

According to the company's disclosure, there is no material impact on financials, operations or other activities resulting from this penalty. The company has assessed that the Rs 29,26,459 penalty amount does not significantly affect its overall business operations.

The disclosure was made in compliance with SEBI listing regulations and relevant circulars, ensuring transparency with stakeholders regarding regulatory developments affecting the company.

Kansai Nerolac Paints Limited has issued a mandatory notice to shareholders regarding the transfer of unclaimed dividend shares to the Investor Education and Protection Fund (IEPF) Authority, in compliance with regulatory requirements under the Companies Act, 2013.

Regulatory Compliance and Publication

The company published the notice on April 17, 2026, in Business Standard (English) and Sakal (Marathi) newspapers, fulfilling the requirements under Regulation 47 read with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The notice was signed by G. T. Govindarajan, Company Secretary, and submitted to both BSE Limited and National Stock Exchange of India Ltd.

Share Transfer Requirements

Under Section 124(6) of the Companies Act, 2013, and the IEPF Authority Rules, 2016, the company must transfer shares where dividends have remained unpaid or unclaimed for seven consecutive years or more to the IEPF Authority's demat account with Central Depository Services Limited (CDSL).

Shareholder Information and Process

The company has individually communicated with affected shareholders whose shares are liable for transfer. A complete list of such shareholders is available on the company's website at https://www.nerolac.com/financial/shareholders.html . For shareholders holding physical shares, the company will issue duplicate share certificates before transferring the shares to the IEPF Authority, rendering the original certificates non-negotiable.

Recovery Process for Transferred Assets

Shareholders should note that both unclaimed dividend amounts and shares transferred to the IEPF Authority can be claimed back by following the prescribed procedure under the IEPF Rules. The company has clarified that no claims will lie against it once shares are transferred to the IEPF Authority.

Contact Information

For queries and clarifications, shareholders may contact the company at investor@nerolac.com or reach the Registrar and Share Transfer Agent, MUFG Intime India Private Limited, at investorhelpdesk@intimeindia.com . Service requests can also be submitted electronically through www.intimeindia.com under 'Investor Services - Service Request'.