Kesoram Industries Limited has informed stock exchanges about receiving an Income Tax Assessment Order with a substantial demand of ₹70.54 crores for Assessment Year 2024-25. The disclosure was made under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Assessment Order Details

The company received the Income Tax Assessment Order on March 31, 2026, from the Assessment Unit of the Income Tax Department. The order was issued under section 143(3) read with section 144B of the Income Tax Act, 1961.

Nature of Tax Demand

According to the company's disclosure, the tax authorities have made certain additions and disallowed specific deductions that were claimed in the Income Tax Return for AY 2024-25. The assessment covers the financial year 2023-24, with the demand arising from disagreements between the company and tax authorities regarding allowable deductions and taxable income calculations.

Company's Response and Expected Impact

Kesoram Industries has expressed confidence in challenging the assessment order, stating that the additions and disallowances made are prima facie erroneous. The company believes it has strong factual and legal grounds to nullify the entire demand and does not expect any impact on its financial operations.

Legal Action Plan

The company is in the process of filing an appeal before the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), or a Writ Petition before the Hon'ble High Court, as deemed appropriate, within the prescribed timelines. Additionally, Kesoram Industries intends to file a rectification application to address the assessment order.

This development represents a significant regulatory matter for the company, though management remains confident about successfully contesting the demand through appropriate legal channels. The disclosure ensures transparency with stakeholders regarding potential tax-related contingencies while the appeal process is underway.

Kesoram Industries Limited has filed a disclosure under Regulation 54(2) of SEBI LODR regarding its secured Non-Convertible Debentures (NCDs) for the quarter ended December 31, 2021. The filing, submitted on March 25, 2026, addresses a delayed compliance matter related to the company's financial statements.

Outstanding NCD Details

The company disclosed comprehensive information about its secured debt obligations as of December 31, 2021. Kesoram Industries acknowledged that it had inadvertently missed disclosing the required information in its unaudited financial statements for the quarter and nine months ended December 31, 2021.

Security Structure

The secured Non-Convertible Debentures are backed by a comprehensive security framework designed to protect debenture holders' interests. The security structure includes multiple layers of protection:

• Primary Security: First pari passu charge on all fixed assets, moveable assets (both non-current and current), and intangible assets of the company
• Additional Security: Pledge on equity shares held by promoters, Non Disposal Undertaking (NDU) on other securities held by promoters
• Guarantee Structure: Promoter guarantee limited to the value of shares pledged and under NDU

Compliance and Penalty Payment

The company has addressed the regulatory non-compliance by making the required payment to BSE. The penalty details reflect the company's commitment to regulatory adherence despite the inadvertent oversight.

Company's Position

While Kesoram Industries has filed the required disclosure and paid the prescribed fine, the company has clearly stated its position regarding future penalties. In its communication to BSE, the company expressed that it is not agreeable to payment of any further fines in this matter, indicating its view that the current compliance action should be considered sufficient to address the regulatory requirement.