Kirloskar Industries Limited has disclosed to stock exchanges that it has received an income tax penalty of Rs 1,74,72,436 from the National Faceless Assessment Centre for Assessment Year 2018-19. The penalty was imposed under Section 270A of the Income Tax Act, 1961, through an order dated 25 March 2026.

Penalty Details and Background

The income tax penalty stems from the disallowance of certain expenses during the assessment process for the financial year 2018-19. The company received the penalty order on 25 March 2026 and promptly informed the stock exchanges in compliance with regulatory requirements.

Company's Response and Impact Assessment

Kirloskar Industries has indicated that it does not anticipate any material impact on its financial operations or other business activities due to this penalty. The company has stated it is in the process of filing an appeal against the income tax order, suggesting it intends to challenge the penalty through appropriate legal channels.

The disclosure emphasizes that while the penalty amount is substantial, the company's operational capabilities and financial activities are expected to remain unaffected during the appeal process.

Regulatory Compliance

The intimation was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company provided detailed information as required under sub-para 20 of Para A of Part A of Schedule III of the regulations, ensuring full transparency with stakeholders and regulatory authorities.

This disclosure demonstrates the company's commitment to maintaining proper corporate governance standards and keeping investors informed about material developments that could potentially impact the organization.

Kirloskar Industries Limited has announced the successful resumption of operations at its material subsidiary following the resolution of supply chain disruptions that temporarily affected manufacturing activities. The company filed updated regulatory disclosures with stock exchanges regarding the restoration of normal production at its key facility.

Operations Successfully Resumed

Kirloskar Ferrous Industries Limited (KFIL), a listed material subsidiary of Kirloskar Industries, has successfully resumed operations of the affected High Pressure Moulding Line at its Solapur plant. The production line, which was temporarily suspended due to LPG supply disruption, recommenced operations on 21 March 2026 through the implementation of alternate fuel solutions.

Supply Chain Challenge Resolution

The operational disruption that began on 17 March 2026 stemmed from Liquefied Petroleum Gas (LPG) supply issues caused by disruptions in global energy supply chains linked to the Middle East conflict. KFIL management successfully addressed the challenge by implementing alternate fuel sources, demonstrating the company's operational flexibility and crisis management capabilities.

Management's Effective Response

The swift resolution of the supply chain crisis highlights KFIL management's proactive approach to operational challenges. The company's mitigation strategies proved effective:

• Successfully identified and implemented alternate fuel sources
• Maintained continuous monitoring of supply chain developments
• Minimized operational downtime to just four days
• Ensured no material financial impact from the temporary disruption

Regulatory Updates and Compliance

Both companies maintained full regulatory compliance throughout the incident. Kirloskar Industries filed comprehensive updates under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. KFIL separately informed stock exchanges about both the initial disruption and subsequent resumption of operations, ensuring complete transparency with stakeholders.

The successful resolution demonstrates the subsidiary's operational resilience and management's ability to navigate supply chain challenges effectively. With the second High Pressure Moulding Line having continued operations throughout the period, the Solapur plant has now returned to full production capacity.