Thirumalai Chemicals received a show cause notice from the Deputy Commissioner, Commercial Tax Department, Ranipet, Tamil Nadu, demanding ₹1731.47 lakhs in tax and other dues for FY24.

The notice, issued under Section 73 of the CGST Act 2017 on October 1, 2026, cites alleged output turnover discrepancies, input tax discrepancies, and ITC reversal issues identified during scrutiny under Section 61 of the TNGST Act, 2017.

Breakdown of the demand

The total demand comprises tax, interest, and penalty components as detailed below:

The scrutiny focused on discrepancies related to output turnover, input tax credits, and reversals during the fiscal year 2023-24.

Company response and outlook

The company stated it will submit its response to the authority within the prescribed timelines. Thirumalai Chemicals maintains that the demands are erroneous and not sustainable. The management firmly believes that any financial implication arising from this matter is likely to be very insignificant and will not have a material impact on the company's financial position.

What the numbers show

The demand structure reveals that interest and penalty components together account for approximately 35% of the total amount claimed. Specifically, interest at ₹495.24 lakhs and penalty at ₹112.93 lakhs sum to ₹608.17 lakhs against the principal tax demand of ₹1123.30 lakhs. This proportion suggests the authority is seeking significant compensation for the alleged delay or non-compliance alongside the core tax liability.

Thirumalai Chemicals Ltd approved the sale of up to 9,50,000 equity shares in Ultramarine & Pigments Limited through the open market on September 30, 2026. The transaction represents a reduction in promoter holding by approximately 3.25% of the target company's total capital.

Transaction Details

The Fund Raising Committee of the Board of Directors considered and approved the divestment during its meeting held on Wednesday, September 30, 2026. The sale will be executed through stock exchanges in the open market, with an expected completion timeline of September 30, 2026.

Regulatory Compliance

The company disclosed this development in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The meeting commenced at 11:00 am and concluded at 11:45 am. Aditya Sharma, Company Secretary and Compliance Officer, signed the disclosure submitted to both the National Stock Exchange of India Limited and BSE Limited.

What the Numbers Show

The proposed sale of 9,50,000 shares constitutes roughly 34.6% of Thirumalai Chemicals' current stake of 27,38,837 shares in Ultramarine & Pigments Limited. Following this transaction, the promoter holding is expected to decline from 9.38% to approximately 6.13% of the target company's total capital, assuming the full quantity is sold at the disclosed closing prices.