Kokuyo Camlin Limited has received significant relief in its income tax proceedings, with the Deputy Commissioner of Income Tax substantially reducing the company's tax demand for Assessment Year 2018-19. The company announced that the rectification order has brought down the demand from ₹162.97 crore to ₹34.05 crore, providing considerable financial respite to the stationery and art materials manufacturer while confirming its plans to appeal the remaining amount.

Tax Demand Rectification Details

The company disclosed to stock exchanges on April 02, 2026, that it received a rectification order dated March 30, 2026, from the Office of the Deputy Commissioner of Income Tax Circle 2(1)(1), Mumbai. This rectification came in response to the company's application following the initial reassessment order received on March 20, 2026.

Impact on Previous Assessment Orders

The rectification order has effectively modified the original assessment order dated April 16, 2021, which had determined a demand of ₹20.26 crore under Section 143(3) for the same assessment year. The revised computation shows an incremental tax liability of ₹3.05 crore (₹30,538,227) compared to the original tax demand, with additional interest recomputed up to the current date.

Legal Framework and Charges

The rectification order was issued under Section 154 read with Section 147 of the Income-tax Act, 1961. The demand includes:

• Interest charges under Section 234B of the Income Tax Act
• Interest charges under Section 234C of the Income Tax Act
• Interest charges under Section 234D of the Income Tax Act
• Interest charges under Section 220(2) of the Income Tax Act

Company's Response and Appeal Strategy

Kokuyo Camlin has confirmed its intention to challenge the rectified order through appropriate legal channels. The company stated that based on its preliminary assessment, the rectified order remains appealable with strong grounds for contestation. The company is already pursuing an appeal against the original assessment order dated April 16, 2021, for the same assessment year.

The management plans to take appropriate legal recourse, including filing an appeal on additional grounds related to differences arising from the reassessment and rectification orders before the appropriate appellate authority. Despite the ongoing tax proceedings, the company does not expect any material impact on its financial position or operations at this stage.

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 company. The communication was signed by Vipul Bhoy, Company Secretary & Compliance Officer, maintaining proper corporate governance protocols.

Kokuyo Camlin Limited has successfully concluded its postal ballot process, announcing results on March 27, 2026, for three special resolutions related to executive remuneration. The company reported that all proposed resolutions were passed with requisite majority, reflecting strong shareholder support for the management's compensation proposals.

Postal Ballot Process Overview

The postal ballot voting process was conducted entirely through remote e-voting, with no physical polling or traditional postal ballots used. The company provided comprehensive details of the voting timeline and shareholder participation.

Resolution Results Summary

All three special resolutions achieved overwhelming approval from shareholders, with voting percentages exceeding 99.97% in favor across all proposals.

Resolution 1: Chairman Remuneration

The first resolution concerned payment of remuneration by way of perquisites to Mr. Dilip D. Dandekar (DIN: 00846901), Chairman & Non-Executive Director. This resolution received strong support across all shareholder categories.

Resolution 2: Vice Chairman Remuneration

The second resolution addressed payment of remuneration by way of perquisites to Mr. Shiram S. Dandekar (DIN: 01056318), Vice Chairman & Non-Executive Director, achieving similar approval levels.

Resolution 3: Managing Director Remuneration Revision

The third resolution involved revision in remuneration payable to Mr. Satish Veerappa (DIN: 00507955), Managing Director, which was the only resolution where promoter groups were not interested parties.

Scrutinizer Validation

The postal ballot process was overseen by S. J. Ranade, Partner of JHR & Associates, Practicing Company Secretaries, who served as the appointed Scrutinizer. The scrutinizer's report confirmed the validity of the voting process and results, with the detailed voting summary generated from the National Securities Depository Limited (NSDL) portal in the presence of independent witnesses Ms. Bhavana Gowda and Mr. Ojas Moghe.

Regulatory Compliance

The results were declared in compliance with Regulation 44(3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has made the complete voting results available on its website at www.kokuyocamlin.com and submitted the necessary documentation to both BSE Limited and National Stock Exchange of India Limited.