Kaveri seed company has secured a significant victory in its tax appeal case, with the Income Tax Appellate Authority setting aside a substantial demand of Rs 73,25,39,490 for Assessment Year 2020-21. The favorable order, dated March 30, 2026, marks the resolution of a tax dispute that had been ongoing since 2022.

Tax Dispute Resolution

The Office of the Commissioner of Income Tax (Appeals) - 11, Hyderabad, passed an order allowing the company's appeal against the Income Tax demand. The original demand was raised primarily due to the disallowance of exemption claimed on agricultural income by the tax authorities.

Appellate Authority's Decision

The Hon'ble Appellate Authority has now allowed Kaveri Seed Company's claim, treating the disputed income as agricultural income. This decision effectively sets aside the entire demand that was raised under section 143(3) of the Income Tax Act, 1961, dated September 30, 2022.

The company had previously disclosed the receipt of the demand notice on October 1, 2022, along with its intention to pursue appropriate legal remedies to contest the tax demand.

Financial Impact

The favorable order eliminates any adverse financial impact on the company, as the substantial tax demand of Rs 73,25,39,490 now stands set aside. This resolution provides significant relief to Kaveri Seed Company's financial position and removes the uncertainty that had been hanging over the company since the original demand was raised.

Regulatory Compliance

The company has fulfilled its disclosure obligations under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, by informing the stock exchanges about this favorable development. The disclosure was made to both the National Stock Exchange of India Limited and BSE Limited on March 31, 2026.

Kaveri Seed Company Limited announced that its Nomination and Remuneration Committee (NRC) has approved a significant employee stock option grant under the company's ESOP 2024 plan. The committee meeting held on March 30, 2026, resulted in the approval of stock options for eligible employees as part of the company's employee benefit initiative.

ESOP Grant Details

The NRC approved the grant of 1,42,352 stock options to eligible employees of the company. These options are exercisable into an equivalent number of fully paid-up equity shares of Rs.2 each, acquired by the Kaveri Employees Trust through the secondary market route under the Kaveri Seed Employee Stock Option Plan 2024.

Vesting and Exercise Schedule

The stock options follow a progressive vesting schedule designed to retain employees over a four-year period. The vesting structure ensures gradual benefit realization, encouraging long-term commitment to the organization.

Employees can exercise their vested options within a maximum period of four years from the date of vesting of respective options, with the exercise period extending up to March 30, 2030.

Regulatory Compliance

The ESOP grant complies with SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021, and follows the terms of the ESOP Plan 2024 as approved by the company's shareholders. The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Since this represents a fresh grant, several parameters including options exercised, money realized by exercise, total shares arising from exercise, and options lapsed are not applicable at this stage. The grant covers eligible employees of the company and its subsidiaries, reinforcing the organization's commitment to employee participation in company growth.