Kesoram Industries Limited has successfully secured a major reduction in its income tax demand, bringing relief to the company and its stakeholders. The development represents a significant victory in the company's ongoing tax proceedings with authorities.

Substantial Tax Demand Reduction

The company achieved a remarkable 91% reduction in its income tax liability through effective representation before tax authorities. The following table summarizes the key details of this tax relief:

Legal Proceedings and Company Response

The company had initially received an Income Tax Assessment Order under section 143(3) read with section 144B of the Income Tax Act, 1961, which resulted in the original demand of ₹70.54 crores. Following the receipt of this assessment order, Kesoram Industries promptly represented against the demand before the appropriate tax authorities.

The company's proactive approach in challenging the assessment has yielded positive results, with authorities accepting the company's representations and significantly reducing the demand. The revised order reflects the effectiveness of the company's tax compliance and legal strategy.

Future Course of Action

Kesoram Industries is currently examining the revised order in detail to understand the basis for the remaining demand of ₹6.03 crores. The company is evaluating appropriate further legal remedies, if required, to address the balance demand amount.

This measured approach demonstrates the company's commitment to ensuring proper compliance while protecting shareholder interests through legitimate legal channels.

Operational Impact Assessment

The company has confirmed that there will be no material adverse impact on its operations due to this tax matter. This assurance provides confidence to stakeholders that the company's business activities will continue unaffected by these proceedings.

The significant reduction in tax liability also improves the company's financial position and reduces potential cash flow pressures that could have resulted from the original higher demand.

Kesoram Industries Limited has issued a clarification to stock exchanges regarding recent price movement in its shares, stating that no undisclosed price sensitive information exists that could have triggered the movement. The company responded to a query from the exchanges seeking explanation for the price volatility.

Regulatory Compliance Statement

In its communication dated April 13, 2026, Kesoram Industries emphasized its adherence to regulatory requirements. The company stated it remains in full compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and has been promptly informing stock exchanges about all events and information that have a bearing on its operations or performance.

Price Movement Clarification

The company provided specific details regarding the price movement inquiry:

Kesoram Industries categorically stated that there is no undisclosed price sensitive information or any impending announcement or corporate action that could have triggered the observed price movement. The company attributed the price volatility entirely to market-driven factors.

Corporate Communication

The clarification was signed by Snehaa Shaw, Company Secretary of Kesoram Industries Limited, and was digitally authenticated on April 13, 2026. The communication was addressed to both major stock exchanges where the company's shares are listed - BSE Limited and National Stock Exchange of India Limited.

The company requested the exchanges to take the clarification on record, emphasizing its commitment to transparent communication with regulatory authorities and maintaining compliance with all applicable disclosure requirements.