Kirloskar Brothers Limited (KBL) has announced the successful completion of its subsidiary amalgamation scheme, marking a significant corporate restructuring move. The company informed that the amalgamation of The Kolhapur Steel Limited (TKSL) with KPML, both wholly-owned subsidiaries of KBL, has become effective from December 5, 2025.

Key Details of the Amalgamation

Implications of the Merger

The amalgamation scheme, which received approval from the National Company Law Tribunal (NCLT), has resulted in the dissolution of TKSL. Consequently, TKSL has ceased to be a subsidiary of Kirloskar Brothers Limited. This strategic move is likely aimed at streamlining operations and potentially improving operational efficiency within the Kirloskar group.

Financial Impact

The immediate financial impact appears minimal, with TKSL contributing only 0.61% to KBL's consolidated turnover in the 2024-25 financial year. The long-term effects of this consolidation may become more apparent in future financial periods.

Regulatory Compliance

KBL has adhered to the necessary regulatory requirements, including:

1. Filing the certified copy of the NCLT order with the Registrar of Companies, Pune.
2. Complying with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

This amalgamation represents a strategic corporate action by Kirloskar Brothers Limited, potentially aimed at optimizing its corporate structure and enhancing operational synergies among its subsidiaries. Investors and stakeholders will likely be keen to observe how this restructuring impacts the company's overall performance and efficiency in the coming years.

Kirloskar Brothers Limited (KBL), a leading pump manufacturing company, has received confirmation that the Goods and Services Tax (GST) demand notices issued to its directors have been withdrawn. This development marks a significant turn in the company's ongoing tax dispute with the Andhra Pradesh state tax authorities.

Key Details of the Withdrawal

The Deputy Assistant Commissioner of State Tax has withdrawn two demand notices:

Background of the Dispute

The tax dispute stemmed from transactions related to an unincorporated Joint Venture named IVRCL-KBL-MEIL (JV) Hyderabad. This joint venture was formed between IVRCL Ltd., Kirloskar Brothers Limited, and Megha Engineering & Infrastructure Ltd. (MEIL) for executing a project with the Water Resources Department of the Government of Andhra Pradesh.

Legal Proceedings and Resolution

1. Initial Notices: The majority of KBL's directors received notices on February 14, 2025, claiming tax arrears for the year 2023-24.

2. Additional Demand: On August 5, 2025, KBL received another demand notice for the tax year 2017-18.

3. Legal Challenge: In response, KBL and its directors filed writ petitions challenging these demand notices in the Andhra Pradesh High Court.

4. Interim Relief: On August 20, 2025, the High Court granted an interim stay against the recovery proceedings.

5. Final Outcome: An endorsement letter dated November 20, 2025, from the Deputy Assistant Commissioner of State Tax confirmed the withdrawal of the demand notices issued to KBL's directors.

This resolution brings closure to a significant tax dispute for Kirloskar Brothers Limited, potentially alleviating concerns about substantial tax liabilities and legal complications. The withdrawal of these notices, totaling nearly Rs. 31 crore, is likely to have a positive impact on the company's financial outlook and investor sentiment.

The company's proactive approach in challenging the tax demands through legal channels, coupled with the subsequent withdrawal of notices by tax authorities, demonstrates the importance of due process in resolving tax disputes in India's corporate landscape.