Kalpataru Projects International Limited (KPIL) has reported that K C Holdings Private Limited, one of its promoter entities, has executed a series of pledge transactions involving 2,00,000 equity shares of KPIL. The company has both created and released pledges over these shares, maintaining its complex web of pledge arrangements across various lending facilities.

Pledge Details

K C Holdings currently maintains multiple pledge arrangements totaling over Rs. 900.00 crores with different lenders. These include:

• JM Financial Credit Solutions
• Aditya Birla Capital
• Tata Capital
• 360 One Prime Ltd (formerly IIFL Wealth Prime Limited)
• Infina Finance Pvt Ltd
• Arka Fincap Ltd
• Bajaj Finance Limited

Purpose of Pledges

The primary purposes for these pledges are:

1. General corporate purposes
2. Refinancing existing group debts
3. Providing security for loans availed by various group companies

Some of the group companies benefiting from these arrangements include:

• Kalpataru Constructions Private Limited
• Kalpataru Land Private Limited
• Abacus Real Estate Private Limited
• Ardour Properties Private Limited
• Kalpataru Urbansacape LLP
• Ambrosia Real Estate Private Limited
• Klassik Vinyl Products LLP
• Kalpataru Retail Ventures Pvt Ltd

Facility Sizes and Share Details

The facilities range from Rs. 12.00 crores to Rs. 144.00 crores across different borrowing arrangements. Here's a breakdown of some recent pledge transactions:

Impact on Shareholding

As of the latest disclosure, the total promoter shareholding in KPIL stands at 33.52% of the total share capital. The recent pledge transactions represent a small fraction of this holding, with each transaction typically involving less than 1% of the total share capital.

Regulatory Compliance

K C Holdings has made these disclosures in compliance with the Securities and Exchange Board of India (SEBI) regulations, particularly the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The company has provided detailed information about the reasons for encumbrance as required by SEBI circulars.

These pledge transactions reflect the ongoing financial management strategies of the Kalpataru group, as they utilize their shareholding in KPIL to secure funding for various corporate purposes and debt refinancing across the group's entities.

Kalpataru Projects International Limited (KPIL) has received a significant tax relief as the Income Tax Appellate Tribunal (ITAT) cancelled a tax demand of ₹81.53 crore for the Assessment Year 2019-20. This favorable ruling not only eliminates the substantial tax liability but also makes the company eligible for a refund of ₹7.35 crore.

Details of the Tax Relief

The company disclosed this development in a regulatory filing to the stock exchanges. According to the filing, the Hon'ble Deputy Commissioner of Income Tax, Central Circle-3(3), Mumbai (DCIT) issued an Order Giving Effect (OGE) to the order passed by the Hon'ble Commissioner of Income Tax (Appeals) [CIT(A)] for the Assessment Year 2019-20.

Financial Implications

The OGE has resulted in two significant outcomes for Kalpataru Projects:

1. Cancellation of Tax Demand: The tax demand of ₹81.53 crore for AY 2019-20 has been set aside.
2. Refund Eligibility: The company is now eligible for a refund of ₹7.35 crore.

Recent Tax-Related Developments

This latest ruling follows a series of tax-related developments for Kalpataru Projects:

• The company received a rectification order for AY 2020-21, reducing the demand from ₹38.51 crore to ₹25.38 crore.
• KPIL reported that the CIT(A) had passed orders for AY 2018-19 to AY 2020-21, providing major relief to the company.
• Similar relief was granted for AY 2013-14 to AY 2015-16 and AY 2017-18.

Company's Stance

While the company has received favorable outcomes in most cases, it maintains a cautious approach. For instances where the CIT(A) has not fully accepted the company's position, Kalpataru Projects has stated its intention to contest these matters before higher appellate authorities, citing strong legal grounds.

The cancellation of the ₹81.53 crore tax demand and the potential refund of ₹7.35 crore represent a positive development for Kalpataru Projects International Limited, potentially improving its financial position and reducing tax-related uncertainties.