Thirumalai Chemicals received a show cause notice on July 30, 2026, from the Office of Deputy Commissioner, Commercial Tax Department, Ranipet, Tamil Nadu, demanding Rs. 2292.66 lakhs in tax and other dues. The notice, issued under Section 73 of the CGST Act 2017, cites alleged output turnover discrepancies and input tax discrepancies for the period 2022-23. This regulatory action requires the company to address claims that could impact its financial position, though management asserts the final implication will be minimal.

The disclosure was made to the National Stock Exchange of India Limited and BSE Limited on July 31, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing also references SEBI Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. Aditya Sharma, Company Secretary & Compliance Officer, signed the disclosure, confirming the company’s intent to submit a response to the authority within the prescribed timelines.

The demand order, issued under DRC01, breaks down the total liability into tax, interest, and penalty components. The primary contention involves alleged discrepancies in output turnover and input tax credits claimed during FY 2022-23. The Commercial Tax Department, Ranipet, has quantified the potential dues based on these alleged violations.

The company maintains that the demands are erroneous and not sustainable. Management firmly believes that the financial implication, if any, arising from this notice is likely to be very insignificant and will not have a material impact on the financial position of Thirumalai Chemicals. The firm is preparing its defense against the allegations of input tax and output turnover mismatches.

Regulatory Context

The notice falls under Section 73 of the CGST Act 2017, which typically applies to cases involving non-payment or short-payment of tax due to honest mistakes or misunderstandings, as opposed to fraud or wilful misstatement. The company’s compliance team, led by Company Secretary Aditya Sharma, has ensured timely disclosure to stock exchanges as mandated by SEBI regulations. The next step involves the submission of a detailed response to the Deputy Commissioner, addressing each point raised in the DRC01 notice.

What the Numbers Show

The structure of the demand reveals that the base tax liability constitutes approximately 59% of the total notice amount, with interest accounting for roughly 35%. The penalty component is relatively smaller at about 6% of the total. This breakdown suggests that the core dispute lies in the calculation of taxable turnover and eligible input tax credits rather than punitive measures for intentional evasion. If the company’s defense holds, the entire Rs. 2292.66 lakh figure may be reduced significantly or nullified, aligning with management’s assertion of an insignificant financial impact.

Motilal Oswal Mutual Fund reduced its shareholding in Thirumalai Chemicals Ltd by disposing of 1,51,245 equity shares through market transactions on July 17, 2026. The disclosure was submitted to BSE Limited under Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 2011.

The schemes involved in the disposal include Motilal Oswal Small Cap Fund, Motilal Oswal Multi Cap Fund, and Motilal Oswal BSE 1000 Index Fund. Prior to the transaction, the acquirer held 58,95,373 shares, representing 4.8903% of the company's total voting capital.

Following the disposal, the mutual fund's holding has decreased to 57,44,128 shares. This revised stake constitutes 4.7648% of the total paid-up voting capital of the target company. The equity share capital of Thirumalai Chemicals Ltd remains unchanged at 12,05,52,774 shares with a face value of ₹1 each.

The filing, signed by Aparna Karmase, Head – Compliance, Legal & Secretarial at Motilal Oswal Asset Management Company Limited, confirmed that the acquirer does not belong to the promoter or promoter group of the target company.

Shareholding Details