Kirloskar Brothers Limited (KBL), a leading pump manufacturing company, has taken legal action against a substantial GST demand notice issued by Andhra Pradesh tax authorities. The company has filed a writ petition with the Andhra Pradesh High Court, contesting a Rs. 15.48 crore tax claim for the financial year 2017-18.

Background of the Dispute

The tax demand is associated with an unincorporated joint venture (JV) formed between IVRCL Ltd., Kirloskar Brothers, and Megha Engineering & Infrastructure Ltd. This JV was established for a project with the Water Resources Department of Andhra Pradesh.

Legal Challenge

KBL received a demand notice from the Assistant Commissioner (ST), Dwarakanagar Circle, Vishakhapatnam – 1, State Tax Department, Government of Andhra Pradesh. The notice required payment of the alleged tax arrears within seven days of receipt.

In response, Kirloskar Brothers filed a writ petition (No. WP/31611/2025) with the Andhra Pradesh High Court. The company is seeking to set aside the impugned assessment order and demand notice, along with an interim stay pending the writ petition.

Financial Implications

The exact financial impact of this litigation remains uncertain at this stage. Kirloskar Brothers has stated that the financial implications cannot be ascertained due to the ongoing legal proceedings. The company has committed to informing the stock exchanges of any developments in this regard.

Company's Stance

Kirloskar Brothers maintains that the tax demand is related to transactions undertaken by the unincorporated Joint Venture, of which it is a partner. The company's decision to challenge the demand in court suggests that it believes there are grounds to contest the tax authorities' claim.

Broader Context

This legal challenge comes at a time when Kirloskar Brothers is also dealing with other significant corporate matters. In a separate development, the company recently announced the appointment of Mr. Harsh Vardhan Shringla as an Independent Director, subject to shareholder approval. This appointment is for a term of five years and is part of the company's efforts to strengthen its board with professionals from diverse backgrounds.

As Kirloskar Brothers navigates these legal and corporate governance challenges, stakeholders will be closely watching the outcomes and their potential impact on the company's operations and financial position.

Kirloskar Brothers Limited (KBL), a leading pump manufacturing company, has initiated a postal ballot to seek shareholder approval for the appointment of Mr. Harsh Vardhan Shringla as an Independent Director. The company's Board of Directors has recommended his appointment for a five-year term, subject to shareholder approval through e-voting.

Proposed Appointment Details

Mr. Shringla, aged 63, was appointed as an Additional Director in the category of Independent Director by the KBL Board, effective August 02, 2025. If approved, his term as an Independent Director would extend from August 02, 2025, to August 01, 2030.

Distinguished Career

Mr. Harsh Vardhan Shringla brings a wealth of experience in diplomacy and international relations to the KBL board. His impressive career highlights include:

• Former Foreign Secretary of India (2020-2022)
• Chief Coordinator for India's G20 Presidency (2022-2023)
• Ambassador of India to the United States, Bangladesh, and Thailand
• Extensive experience in multilateral diplomacy, including work with the UN Security Council, UNESCAP, and UNESCO

E-Voting Process

KBL has set up an e-voting process for shareholders to cast their votes on this resolution:

• E-voting period: August 12, 2025 (9:00 AM IST) to September 10, 2025 (5:00 PM IST)
• Cut-off date for voting eligibility: August 08, 2025
• The resolution requires approval as a Special Resolution

Regulatory Compliance

The appointment is subject to Regulation 25(2A) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. If the special resolution fails to get the requisite majority but receives more favorable votes than against, and public shareholders' votes in favor exceed those against, the appointment will be deemed approved under this regulation.

Board's Recommendation

The Board of Directors of Kirloskar Brothers Limited recommends the appointment of Mr. Harsh Vardhan Shringla, citing his expertise in geopolitics, international relations, and conflict prevention as valuable additions to the company's leadership.

Shareholders of Kirloskar Brothers Limited are encouraged to participate in the e-voting process to decide on this significant board appointment. The results of the postal ballot will be declared within the statutory timelines and posted on the company's website and stock exchanges.