KEC International has informed stock exchanges about a significant tax demand received by its wholly owned subsidiary, KEC Spur Infrastructure Private Limited. The subsidiary received an order from the Income Tax Department on April 9, 2026, raising a tax demand of Rs. 46.19 crores for the financial year 2022-23.

Tax Demand Details

The Income Tax Department's Assessment Unit issued the order dated March 24, 2026, which primarily stems from ad-hoc additions and disallowances of normal business expenditures and alleged unverified creditors. The demand represents a substantial amount that the subsidiary will need to address through appropriate legal channels.

Company's Response Strategy

KEC International has expressed confidence in contesting the tax demand, stating that the subsidiary believes the matter is strong on merits. The company characterizes the impugned tax demand as ad-hoc and based on estimations rather than substantive grounds. Management expects that the wholly owned subsidiary will be able to substantiate and justify the genuineness of the expenses in question.

The subsidiary is currently in the process of filing necessary appeals with the Commissioner of Income Tax (Appeals) to challenge the order. The company anticipates that following the completion of the redressal process, the impugned tax demand is likely to be deleted.

Financial Impact Assessment

Despite the substantial quantum of the demand, KEC International has indicated that it does not foresee any material financial impact on account of this order. This assessment is based on the company's belief that the subsidiary has strong grounds to contest the demand and that the expenses in question represent legitimate business expenditures.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency with stakeholders regarding material developments affecting the subsidiary. This regulatory filing demonstrates the company's commitment to maintaining proper disclosure standards for significant tax-related matters that could potentially impact its operations.

KEC International Limited has issued a corporate guarantee worth Rs 310 crore (SAR 125 Million) for its subsidiary company, as disclosed in a regulatory filing dated April 08, 2026. The guarantee was provided to support banking facilities extended by an overseas bank to the subsidiary.

Corporate Guarantee Details

The guarantee has been issued in favour of Al Sharif Group & KEC Limited Company, which is a subsidiary of KEC International Limited. The corporate guarantee arrangement was formalized on April 08, 2026, to facilitate banking facility access for the subsidiary company.

Regulatory Compliance

The disclosure has been made pursuant to Regulation 30 read with Para B of Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has also referenced SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/1/3762/2026 dated January 30, 2026, in its filing.

Financial Impact Assessment

KEC International has clarified that the promoter, promoter group, and group companies have no interest in this transaction. The corporate guarantee represents a potential contingent liability for the company, though management has indicated that there is presently no impact of this guarantee on the company's operations.

The guarantee filing was signed by Suraj Eksambekar, Company Secretary and Compliance Officer, and submitted to both the National Stock Exchange of India Limited and BSE Limited for regulatory compliance.