Thirumalai Chemicals Limited has reported significant progress in utilizing funds from its recent preferential issue, according to the latest Monitoring Agency Report for the quarter ended September 30, 2025. The company has deployed Rs 311.11 crore out of the total Rs 450.63 crore raised, with no deviations from the stated objectives.

Capital Expenditure and Operational Payments

The company has allocated Rs 211.94 crore towards capital expenditure for its US subsidiary, TCL Specialties LLC. This investment aligns with Thirumalai Chemicals' strategy to expand its presence in the United States market.

Additionally, Rs 99.17 crore has been utilized for operational payments, including:

Fund Utilization and Monitoring

CRISIL Ratings, acting as the Monitoring Agency, has confirmed that there are no deviations from the stated objectives of the preferential issue. The remaining Rs 139.52 crore is currently held across various bank accounts of the company and its subsidiaries:

Project Timeline and Utilization

The company aims to complete the investment in TCL Specialties LLC by December 2025, as originally planned. However, there is a slight delay in utilizing funds for general corporate purposes, which was initially scheduled for October 2025 but is now expected to be completed by November 2025.

Additional Developments

In a separate disclosure, Thirumalai Chemicals has received an intimation of tax ascertained as being payable under Section 73 of the CGST Act, 2017. The Assistant Commissioner (ST), Ranipet, Tamil Nadu, has raised a demand of Rs 47.53 crore for excess Input Tax Credit (ITC) availed based on GSTR 9 scrutiny.

The company believes that the tax demand is erroneous and not sustainable. Thirumalai Chemicals plans to pursue legal remedies and expects any potential financial implications to be insignificant, with no material impact on its financial position.

This report demonstrates Thirumalai Chemicals' commitment to transparent fund utilization and strategic expansion, while also highlighting its proactive approach to addressing regulatory challenges.

Thirumalai Chemicals Limited , a prominent chemical manufacturer, has recently received a substantial tax demand notice from Tamil Nadu authorities. The company is gearing up to challenge what it believes to be an erroneous claim.

Tax Demand Details

The Assistant Commissioner (ST) of Ranipet, Tamil Nadu, has issued a tax demand notice to Thirumalai Chemicals for an alleged excess Input Tax Credit (ITC) availed. The details of the demand are as follows:

Company's Response

Thirumalai Chemicals has taken a firm stance on the matter:

1. Erroneous Claim: The company believes that the tax demands are erroneous and not sustainable.
2. Legal Recourse: Thirumalai Chemicals plans to pursue legal remedies available to contest the demand.
3. Financial Impact: The company asserts that any financial implications arising from this demand are likely to be insignificant.
4. Material Impact: Thirumalai Chemicals states that this issue will not have any material impact on its overall financial position.

Implications and Outlook

While the tax demand of Rs. 47.53 crore is substantial, Thirumalai Chemicals appears confident in its position. The company's decision to pursue legal remedies suggests a strong belief in the merits of its case.

Investors and stakeholders will likely be watching closely as this situation unfolds, particularly focusing on:

1. The outcome of any legal proceedings initiated by the company.
2. Any potential revisions to the tax demand amount.
3. The actual financial impact, if any, on Thirumalai Chemicals' balance sheet.

As the matter is currently under dispute, it remains to be seen how this will affect Thirumalai Chemicals' operations and financial planning in the short to medium term. The company's assertion of the demand's insignificance, however, may provide some reassurance to its stakeholders.