Voith Paper Fabrics India Limited shareholders have approved the appointment of Asesh Kumar Mukherjee as Managing Director of the company. The resolution was passed through a postal ballot process that concluded on October 16, 2026.

The voting results, disclosed in compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, indicate strong support for the appointment. Both the resolution for his appointment as Director and as Managing Director received the requisite majority.

Voting Results Overview

The postal ballot notice was issued on August 26, 2026, with the voting period running from September 17 to October 16, 2026. The cut-off date for determining eligible shareholders was September 11, 2026. A total of 5,438 shareholders were recorded as on the cut-off date, of which 62 participated in the e-voting process.

Resolution Details

Two special resolutions were put to vote:

1. Appointment of Asesh Kumar Mukherjee (DIN: 11908288) as Director.
2. Appointment of Asesh Kumar Mukherjee (DIN: 11908288) as Managing Director.

Both resolutions were classified as special resolutions. The promoter group held a significant stake in the voting outcome, casting 32,52,418 votes in favour for both items. Public non-institutional shareholders cast 2,995 votes, with 2,979 in favour and 16 against. Public institutional shareholders did not cast any votes.

What the Numbers Show

The voting pattern reveals a high concentration of promoter influence in corporate governance decisions. Promoters voted 32,52,418 shares, constituting approximately 74.11% of the total outstanding shares eligible for voting (43,92,559 shares). Consequently, the promoter group's unanimous support effectively determined the outcome, as public dissenting votes amounted to only 16 shares out of the total 32,55,413 votes polled. This indicates that minority shareholder participation remains low relative to the total shareholding base, with only 62 out of 5,438 registered shareholders participating.

Voith Paper Fabrics India Limited has received an assessment order from the Income Tax Department demanding ₹3.82 crore for Assessment Year 2023-24. The demand arises from transfer pricing adjustments accepted by the Department after review by the Dispute Resolution Panel (DRP).

The company filed its return of income on November 28, 2023, declaring a total taxable income of ₹43.07 crore. The case was selected for complete scrutiny under the Computer Assisted Scrutiny Selection (CASS) system, primarily flagged for high-risk international transactions and discrepancies in Tax Deducted at Source (TDS) disallowances.

Transfer Pricing Adjustments and DRP Review

The Transfer Pricing Officer (TPO) initially proposed an upward adjustment of ₹12.24 crore to the total income, citing that international transactions with Associated Enterprises were not at arm's length. Key issues included the Trading Segment, Marketing Support Services, Royalty payments, and Intra-Group Services.

The assessee filed objections before the Hon'ble DRP, which directed the TPO to modify certain adjustments. Following these directions, the TPO issued a revised computation on September 24, 2026, reducing the total adjustment to ₹10.87 crore. The Assessing Officer subsequently passed the final assessment order under Section 143(3) read with Section 144C(13) of the Income-tax Act, 1961, on September 25, 2026.

Breakdown of Revised Adjustments

The final total income was determined at ₹53.94 crore, up from the returned income of ₹43.07 crore. The table below details the specific transfer pricing adjustments as per the final order:

The Trading Segment adjustment was reduced because the DRP excluded certain functionally dissimilar comparables and upheld the Resale Price Method (RPM) with a revised arm's length margin of 41.75%. The Royalty and Intra-Group Services adjustments remained unchanged, as the DRP found no evidence of actual service receipt for the latter and deemed the royalty rate excessive compared to market benchmarks.

Financial Impact and Compliance

The aggregate income tax liability, including interest under Section 234B, amounts to ₹14.58 crore. After adjusting for prepaid taxes of ₹11.18 crore, the net demand payable is ₹3.82 crore. Penalty proceedings under Section 270A for under-reporting of income have been initiated separately.

The company stated it shall explore available options and take appropriate action in accordance with the Income Tax Act, 1961. The demand notice requires payment within 30 days of service, failing which interest and recovery proceedings may follow.