Kaushalya infrastructure Development Corp. Ltd. has informed stock exchanges about receiving significant income tax assessment orders and demand notices from the tax authorities. The company disclosed this development under regulatory compliance requirements on March 25, 2026.

Assessment Orders and Demand Details

The company received assessment orders under Section 147 read with Section 144 of the Income Tax Act, 1961, covering seven assessment years. The demand notices under Section 156 were dated March 18, 2026, and received by the company on March 24 and 25, 2026.

Nature of Tax Disputes

According to the assessment orders, the Income Tax Department has treated certain amounts as deemed income in the hands of the company for the assessment years 2017-18, 2018-19, 2019-20, 2020-21, and 2022-23. This treatment has resulted in the consolidated demand of Rs. 5,45,61,668 across all the mentioned assessment years.

The company received most of the notices and corresponding orders on March 24, 2026, after the close of business hours, with some additional notices received the following day.

Company's Response and Impact Assessment

Kaushalya Infrastructure Development Corp. has stated that it is currently evaluating the assessment orders and does not agree with the observations and adjustments made by the tax authorities. The company expressed confidence in having strong legal and factual grounds to challenge the assessment orders.

The company has assured stakeholders that the assessment orders and demand notices do not have any significant or adverse impact on the company's financial position, operations, or other activities. The matter will be appropriately contested and pursued before the relevant appellate authorities under due process of law.

Regulatory Compliance

This disclosure was made pursuant to Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The information has also been made available on the company's website for stakeholder reference. The disclosure follows the requirements under the SEBI Master Circular dated January 30, 2026, ensuring transparency in material developments affecting the company.

Kaushalya Infrastructure Development Corporation Ltd (KIDCL) has reported a turnaround in its financial performance for the first quarter. The company's board meeting on August 14 revealed significant improvements in both standalone and consolidated results, along with key corporate decisions.

Financial Highlights

Standalone Performance

• Revenue from operations stood at Rs 2.16 lakhs, slightly down from Rs 2.20 lakhs in the same quarter last year.
• Net loss narrowed to Rs 45.42 lakhs, compared to Rs 74.68 lakhs loss in the previous year's quarter.
• Other income surged to Rs 102.64 lakhs, primarily due to recovery of long-standing dues.

Consolidated Performance

• Consolidated revenue remained stable at Rs 2.16 lakhs.
• The company reported a net profit of Rs 41.18 lakhs, a significant improvement from a loss of Rs 69.86 lakhs in the same quarter last year.

Key Financial Metrics

All figures in Rs lakhs

Operational Highlights

• The company recovered long-standing dues of Rs 92.37 lakhs from debtors during the quarter.
• This recovery led to a reversal of doubtful debt provisions, significantly boosting other income.
• An amount of Rs 28.31 lakhs was classified as bad debt and included under other expenses.

Corporate Updates

1. New Secretarial Auditor: The Board approved the appointment of M/s. B. K. Barik & Associates as Secretarial Auditors for a five-year term, subject to shareholder approval.

2. Annual General Meeting: The 33rd Annual General Meeting is scheduled for September 24, to be held via video conferencing.

3. Book Closure: The register of members and share transfer books will remain closed from September 18 to September 24 (both days inclusive) for the AGM.

4. E-voting Scrutinizer: Md. Shahnawaz, Practicing Company Secretary, has been appointed as the scrutinizer for the e-voting process at the upcoming AGM.

Management Commentary

While specific management quotes were not provided, the financial results indicate a positive trend in the company's performance, particularly in terms of debt recovery and profitability on a consolidated basis.

Looking Ahead

Kaushalya Infrastructure's turnaround, especially on a consolidated level, suggests improved operational efficiency and financial management. The significant reduction in losses and the move to profitability on a consolidated basis are encouraging signs for the company's stakeholders. However, the flat revenue growth indicates that challenges remain in the core business operations.

Investors and stakeholders will likely be watching closely to see if the company can sustain this positive momentum in the coming quarters, particularly in growing its operational revenue alongside the improvements in profitability.